Should You Buy, Sell, Or Stay Put in 2023 - Property Dilemma Faced By Homebuyers
Buy, Sell, Or Stay Put in 2023 - This is the Property Dilemma Faced By Homebuyers
After two years of record growth during the COVID-19 pandemic, UK house prices plateaued during Q4 2022.This is largely a result of bi-factor of interest rates shooting two figures not seen since the 90s and the cost-of-living crisis making things worse for the housing sector.
Homebuyers and owners faced a turbulent 2022 as they had to deal with rising house prices, higher mortgage rates, and falling property prices and the chaotic mini-budget playing a key role in creating this mess.
The shortage of properties continues to impact homebuyers, with the prices remaining consistently high in most areas. January 2023 saw quite a stagnant market however most UK Residential Property reports and insight from our own Ringley Group in-house data trends suggest the market is picking up going into Q2 2023.
Uncertainty no doubt remains for first-time buyers in particular though with the high cost of borrowing preventing first-time homebuyers from progressing up the property ladder. It is important to research and take professional advice to avoid financial mistakes while deciding whether to invest in a property in 2023 or play the waiting game.
Buy to Let Mortgages?
From an investors perspective, Lending facilities have tightened since the interest rate rises. In Central London in particular, the achieved yields are not at levels required to meet serviceability requirements by most of the Lending market. As with many property cycles, cash is proving to be king for investors in the short term and only now are we beginning to see Lenders become more intuitive and creative with the facilities available.
If You Have Saved A Huge Deposit, You Have More Options
Most mortgage rates hover around five percent. The only way you can enjoy a lower interest rate is to pay a bigger deposit. Lenders will see you as a client with less risk and will readily offer a lower interest rate than the prevailing market rate.
A bigger deposit will also protect you from the risk of negative equity. Negative equity is a situation in which house values drop, and the property value becomes less than what you borrowed on the mortgage. We are already seeing receivership cases coming through the market but in our opinion, this is not likely to be anywhere close to the 2008 crash and levels of repossession.
So, Should You Move House in 2023?
Moving home is one of the biggest decisions in the life of an individual or a family. It can make or break you financially. Make sure you understand the following factors before making a decision.
- Falling prices should not be why you put off your home-buying decision.
- Prices have dropped, but it is a market correction. They are falling from a high point with a 7.8% average increase in 2022 alone
Buyers are likely to enjoy more advantages in 2023. If you are a buyer, make sure you make the best use of the present situation.
Is Staying Put In My Current Home A Wise Move?
There is economic uncertainty all around. Putting off critical decisions like moving home might be a commonsense thing to do. Bear in mind that:
- The market is expected to stabilise in the medium-term
- Things may not look very promising right now, but March 2023 figures on average is showing growth.
If you have decided to wait and watch, there are a few steps you can take that can help you get the best deal when you need to re-mortgage.
Go for green renovations.
Bring down costs and increase home value by introducing energy-efficient improvements. Many buyers favour homes with high Energy Performance Certificate (EPC) ratings. Mortgage lenders are keen to lend to green homes. Banks and lenders are already offering preferential rates for those who invest in energy-efficient homes.
Planetrent Properties
Under Offer: This term applies to a property where the landlord is considering an offer but remains on the market. It implies that further offers may still be considered until the landlord formally accepts or declines the current offer.
Let Agreed: This term indicates that a landlord has provisionally agreed to enter into a rental agreement with a prospective tenant, pending additional checks and referencing. It doesn't require the prospective tenant to have paid a holding deposit.
Let: This term signifies an established binding rental agreement between the landlord and tenant.
For both lettings and sales, the guidance addresses additional terms:
New On The Market: This term is used for a property not advertised since its last sale or rental. It should only be used for a brief period.
New Instruction: It applies to a property assigned to an agent for marketing recently, even if it was previously listed with another agent without being sold or rented.
New and Exclusive: This term refers to a property that is either new on the market or a new instruction, exclusively available through a specific agent or portal.
New Method of Sale/Let: This term is used when a property is being marketed for sale or rent using an alternative approach to the original advertisement, such as transitioning to an auction or sealed bid.
Reduced: This term indicates that a property's price has recently been reduced. The reduction should be genuine and comply with the Chartered Trading Standards Institute's guidelines on pricing practices.