With a slower housing market, this may help first-time buyers to take the opportunity to jump onto the property ladder.
With the surge in property prices since the pandemic at a temporary slowdown, it’s causing the property market to balance out in terms of the number of properties available vs buyers.
With more people looking to rent due to a number of factors, developers are continuing to develop ‘build-to-rent’ properties. We expect this market segment to grow, however, we also see the overall property market slowdown being a temporary one.
This levelling out may present an opportunity to negotiate on the asking price. A lower asking price may be accepted, especially if the seller wants a quick sale and if as a first-time buyer, you have all the paperwork ready to go, including a mortgage in principle.
With the way, the property market is going, it's uncertain how long this slowdown will continue for. Although The Bank of England's base rate continues to go up to combat inflation, The Bank of England has also stated that they are hoping to bring inflation to below 2% within two years, which in turn will lead to cheaper mortgage rates.
We do feel that this is a great time to see if any discounts can be applied to the asking price, which will help in the reduction of the required deposit. We would recommend you have all your paperwork ready, including your mortgage in principle before starting your search, as this way you can move with certainty once you have found your perfect property at the right price for you.
The surge in property prices during the pandemic has meant that property prices have seen astronomic growth. However, as more people were looking for a larger space, this caused flats to grow at a slower rate.
There are some great opportunities to buy a flat at a cheaper price than a house, giving a first-time buyer the opportunity to jump on the property ladder.
But there are extra costs to keep in mind when buying a flat, such as ground rent and service charges. Knowing these chargers is essential, as this will add to the outgoing amount every month.
You should also ask who will pay for repairs and maintenance to the building. Knowing this is important, as this way you know whether to expect additional costs or not.
Most flats are leasehold, meaning that there will be a number of years left on the lease. When speaking with your mortgage advisor, you should what is the number of years required to be left on the lease for the mortgage to be accepted.
Although flats have had slower growth during the pandemic, we expect more buyers to realise the value found in flats over the coming months.
Overall, property price growth has stalled since the summer months, especially in the last three months when house process have only risen by 0.3% compared to the 2% rise seen in the summer.
Market analysts are expecting a small price dip in 2023, giving a small respite for first-time buyers who have continually faced rising prices and intense competition.
We do expect this small price dip to be a temporary one. With the expectancy of inflation coming down over the next two years, The Bank of England base rate should go down, causing banks to introduce lower mortgage rates. Once this begins to happen, we do expect the property market to pick up, in turn continuing its overall robust growth.
Our dedicated team have helped many first-time buyers find their ideal first home. Book your appointment today and find your perfect home by calling 0116 275 8888.