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Housing market

Looks like another interest rate rise next week !! Happy days

On a better note nationwide offering 4.2 % saving rate i believe
 
My happy days were the times when mortgage interest rates dropped from 8 to 7.5%! At one time for a short period I was paying 16,5%!

DV
 
I think larger, more energy intensive houses are going to become a tricky sell. Your compact, warm and energy efficient flat or house is what people are going to want. Cheap energy is gone. If you are upsizing, I think your cost to change is going to reduce quite noticeably. Not good news for downsizers of course, they’ve left it 12 months too late IMHO.
 
Dunno about the Midlands but Leeds and Bradford are feeling very flat to me. 2 houses in my street went up this summer, both looked overpriced to me, one by at least 10%. Bizarrely, that one sold in weeks, the other sold and then fell through. This one has since not moved in months, even though it's in a better position. It's a lovely house too, 3 bed det, double garage, easy expansion of you wish.
 
Got a flat going on market in devon next tues .beautiful flat near the sea .be interesting hiw fast it sells and for what price
 
Latest research update from Savills. Govt doing a great job in reducing rental supply:

A tale of two markets: different dynamics in the lettings and sales markets
The latest RICS Residential market survey demonstrates the differences at play between the sales and lettings markets. A net balance of 35% of surveyors saw an increase in tenant demand in November, while a net balance of 27% of respondents witnessed a decrease in landlord instructions coming to the market. This marks the 28th consecutive month of increasing demand vs. falling supply in the rental market. Against this context, it should not come as a surprise that a net balance of 43% of respondents to the RICS survey expected further rental growth over the next three months.

While a strong reading for rental growth expectations, it was the lowest it’s been for over a year and a half. This suggests a moderation in levels of rental growth next year, reflected in our expectation of rental growth of 6.5% across the UK housing market in 2023. You can read about in more detail in our rental forecast for 2023-27.

So, what does this mean for affordability? Data from the ONS tells us that average earnings growth to September stood at 6.0%, albeit against an underlying rate of inflation of 11.1% to the end of October.

Savills own statistics (weighted to the top end of the market) show that we had, on average, 11% more prospective tenants registered with us compared to the same period last year in November. Available stock levels were also 11% higher than this time last year, yet they remained just under half the levels of November 2020. This is despite the evidence of more accidental landlords in the market, given the change in sentiment in the sales market.

Earlier this month the Nationwide reported that the average UK house price fell by 1.4% in November, following October’s fall of 0.9%. After significant house price growth of 26% between June 2020 – September 2022, these consecutive falls leave little doubt that increased mortgage costs seen in the autumn marked a turning point for the mainstream housing market. I spoke to Bloomberg on what the implications will be – you can listen here.


Prime time viewing
Against this mainstream market backdrop, we looked at the prospects for the prime housing market in our latest webinar, held on 22 November. It features our head of residential lettings, Jane Cronwright-Brown, so if you missed it and want to catch up between gift wrapping and last minute present buying, you can watch it here.

We have since had the results of our latest client survey, in which 26% of respondents said they had reduced their budgets. That percentage rose to 44% for those looking to upsize or get onto the housing ladder for the first time.

Despite this, a net balance of 12% of respondents have become more committed to moving home over the next six months, and peoples’ intention to move over the next 24 months was even more robust, with a net balance of 30% saying their longer term commitment to move had increased in the past three months.

And on that more positive note, I would like to take the opportunity to wish you all a merry festive season and to thank all of those who responded to our last client survey – with 1,500 responses, it was the best Secret Santa present the research team could have hoped for.
 
Yep. If you’re in for the long haul and not up to your neck in debt, none of it matters. You can’t have long term growth without a few wobbles, although govt interventions tend to help!
 
Yes, I think so. In 2020 I rented a property using a corporate agent, Goodfellows. They put a video of it on Rightmove etc and someone came along and wanted to take it straight away, without seeing it first. I refused, but maybe I should have let them go ahead with the deal -- they came, viewed, signed and they're still there. All the administration was done on line, they have a system which checks that each step is completed -- from referencing and right to rent, to the EICR etc. They have an automated system for tenants to report faults in managed properties, no need to speak to anyone.

One thing to say is that letting agency is a completely unregulated business -- anyone can set up a letting agency, including someone with fraud convictions or with learning difficulties. They don't need to have had any professional training, there's no register for them to be struck off. I trust a computer more than I trust your average agent.

By the way, I read that Hamptons are saying that they're seeing a boom in BTL sales, people attracted because rents have increased, so margins have increased. I guess much of it is from people with cash or people who can still access cheap money.
 
mandryka said:
Yes, I think so. In 2020 I rented a property using a corporate agent, Goodfellows. They put a video of it on Rightmove etc and someone came along and wanted to take it straight away, without seeing it first. I refused, but maybe I should have let them go ahead with the deal -- they came, viewed, signed and they're still there. All the administration was done on line, they have a system which checks that each step is completed -- from referencing and right to rent, to the EICR etc. They have an automated system for tenants to report faults in managed properties, no need to speak to anyone.

One thing to say is that letting agency is a completely unregulated business -- anyone can set up a letting agency, including someone with fraud convictions or with learning difficulties. They don't need to have had any professional training, there's no register for them to be struck off. I trust a computer more than I trust your average agent.

By the way, I read that Hamptons are saying that they're seeing a boom in BTL sales, people attracted because rents have increased, so margins have increased. I guess much of it is from people with cash or people who can still access cheap money.
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funny , i paid several hundred quid today to do the guttering on an adjoining rented house because the letting agent is so utterly rubbish [ my water runs into their system]. if you dont ask them to do work they wont do it and tenant was lady with dementia . not impressed with most letting agents
 
mandryka said:
By the way, I read that Hamptons are saying that they're seeing a boom in BTL sales, people attracted because rents have increased, so margins have increased.
Click to expand...
We see that regularly in our road. I’d estimate as many as 80% of house and flat sales that we’ve noticed along our road in the last five years or so have gone from ‘For Sale’ to ‘Sold’ to ‘To Let’ very quickly. It’s only since that disastrous budget in September and the resultant slowdown that we’ve seen any ‘For Sale’ signs linger for more than a matter of days.
AirBnB has dented the market somewhat too. A friend lives in a small town in Scotland, and was looking for a flat to rent for her daughter. RightMove showed five available in the town, yet AirBnB listed over 230 properties in the same town.
 
I'm looking for something at the moment in Suffolk and well presented properties at sensible prices are going very quickly (a week or so less), smaller less well presented properties at the same price point have been on from four to twelve weeks. Despite that, I'm still seeing new instructions coming on at Summer prices and I think the market is already 5-10% lower.
 
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