Here's Richard's Market Comment for May 2022. As you may know, the Bank of England…
Welcome to the June 2022 property market comment. (Scroll down to watch Richards video)
The Jubilee weekend kicked off the summer in style, although from a property perspective, it feels like we’re in the height of a traditional spring market – with high levels of activity from buyers and sellers alike – many of whom have been waiting to act and are now doing so.
You may have seen in the media that higher inflation, leading to a noticeable increase in the cost of living, along with the associated interest rate rises may temper the property market. And that’s no bad thing. But tempering does not mean that property prices are going to fall any time soon.
Not this time time around.
We’ve got unemployment at a record 50 year low at just 3.7%, unlike the 8% and 12% rates that accompanied the recessions of 1990 and 2008. At that time, the Bank of England base rate was 14% and 5.5% respectively.
Despite recent increases and possibly more to come, the current bank rate it’s still just 1%. The property market will be just fine. There is no indication that prices will fall – last month the Nationwide reported an 11.2% price rise and most pundits such as Zoopla, and major UK estate agencies research analysts are predicting a 3% -5% increase this year. So the only thing that’s going to fall is the rate of growth, not prices.
They are still going up – supported by that strong demand as buyers seek to lock – in fixed rate mortgage deals. We love helping people move by building chains that might not otherwise have happened. So if you even have the seed of an idea that you might want to move, well now could be your moment. Too many people lose out by procrastinating – please don’t be one of them.
Call us today on 01225 707342 – you might be pleasantly surprised. Or you are welcome to book a valuation here online.