So, are house prices falling?

A question that is going to be discussed at Bar B Qs, school parties and family gatherings throughout the summer and beyond, and its an important question because since the late naughties its never been more expensive to have a mortgage….and there are murmerings that they will go higher still.

So in a nutshell, of course they are, we cant have a rise in rates of this speed and magnitude and not expect there to be a an impact on prices. But it isn’t quite as simple as that, stock and stock type from area to area will be different, supply of one type of property could be high so prices (for motivated sellers) will have to be adjusted to create the demand, but a rare property, close to a station or renowned local school could easily retain its value.

I have had first hand experience of sellers preparing for their rates to rise as they come off their fixed rate (about 1.2 million people this year approx) so the expectation for desperation to set in with these situations is, from  the outside , understandable. But , and here is the but, lenders do not want to repossess homes, it takes up to 2 years and is a really bad look in these social media times. Forbearance has been asked by the Government so expect more lenders to offer mortgage holidays , interest only switches and, on the whole, being far more sensible whilst we navigate some of the choppiest global and political waters we have ever seen…..and blimey , lets not go there!

Ok, so should you buy?
Absolutely , but don’t overpay. Carry out your research, do your due diligence and work with  honest and ‘no guff’ agents (they are out there)  you will find out pretty quickly what is good value what you should be offering, yes the motivation of the seller will be instrumental in getting the value agreed but this is about kissing a few frogs along the way, be patient but if the ‘one’ appears and its affordable to you for the next 2-3 years….go for it, remember markets are cyclical.

Finally, it should be noted that for the first time buyer its bit more of a dilemma as rental prices are getting a bit silly (you’ve got the attack from George Osbourne on the accidental landlord to blame for that but that’s for another day). In a lot of areas the price of the mortgage is more than the rent and with the stress test for first time buyers being around 7/8% for lenders, after you have saved up that deposit , you might not even be able to get the mortgage, even if you wanted too.

But, and he is another one, If there are some great value first time buyer properties out there and you have your agreement in principal and even if the cost might be a couple of hundred pounds more than renting  then surely paying your own mortgage off and not that of your landlord is a better prospect.

Sure it can be a minefield but I've seen it all before, don’t hesitate to get in touch if you need some advice or just a chat, because that’s the agent we are.