We’ve had reports at What Mortgage of people who have found buyers for their own property but cannot move because there are no homes to buy.
And new figures from the government released today go some way to explaining why. Indeed, HMRC revealed the number homes sold in January may have been higher than in December (5.1%) but it was 10.6% fewer than in January 2021.
This is partly due to the stamp duty holiday, which was in full swing at the turn of 2021 and driving a booming trade in the property market.
But it’s also because there simply are not enough homes out there to meet the demand.
It would seem, following record house prices rises, the market has started to slow. So, what’s been happening?
Squeezed finances
Karen Noye, mortgage expert at Quilter, explained: “In spite of the pandemic, over the last two years the housing market has ignited like never before and the huge rush to buy has been a major contributing factor to the record house prices we are currently seeing.”
She added: “However, it now feels like we are in a very different fiscal position with inflation and a cost-of-living crisis squeezing people’s finances and interest rates also on the rise.
“While there will be residual movement in the housing market as a result of people still adjusting to post-pandemic working rituals there will likely be an inevitable slow down over the next year.
“As interest rates rise and money is less cheap to borrow it may start to put off prospective buyers and as a result drive down the number of transactions.”
Buyer tips
If you are a buyer – and particularly if you already have your current home under offer – you will no doubt be holding your breath waiting for the next Rightmove alert to come through on your phone.
There’s some good news – we are approaching Spring, which is typically a popular time for people to put their homes on the market.
Nick Leeming, chairman of estate agent Jackson-Stops, said it was already starting to see more listings making their way onto the market.
He added: “We expect that as the weather warms up and we enter the traditionally busier spring market, we’ll see an uplift in both stock levels and the resulting sales activity from March onwards.
“Despite higher costs of living, the costs associated with borrowing still remain attractive and homeowners seeking their dream home aren’t to be deterred.”
His advice for anyone really serious to move, was to speak to agents directly about any off-market properties which may be available. Indeed, Nick explained there were increases in homes being marketed this way.
He added: “There remain high levels of intent in today’s market with many buyers swiftly progressing the purchase of their dream home and we expect this to increase substantially over coming weeks.”
Buyers keen to bag their dream home have also been known to letter drop in streets or districts in which they are keen to buy. A polite letter enquiring whether homeowners are considering selling without the middle person may provide the lucky break you need.
