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When most people hear the phrase – interest rate rise, they immediately panic and worry about higher bills and extra expenses at the end of each month, then have a good rant about how horrid and expensive everything is getting. Every cloud has a silver lining, though, and the good news is this could do a lot of good for the housing market.

It’s no secret that we have had it good for a long time. Interest rates through the pandemic have been at an all-time low. In fact, many argue that they have been so good that it’s been too much of a good thing. We all know too much of a good thing has bad consequences!

Many experts have said that because interest rates have been so low, it has caused the instability that we have endured this year with nine consecutive rises.

So how is this good news for you?

Mortgage interest rates are falling and are set to fall further.

This small increase in the base interest rate should not affect your mortgage interest rate. In fact, interest rates for mortgages are steadily falling, with some experts predicting that five-year fixed-rate mortgage interest rates will gradually decrease in 2023, before settling below 4%. So don't worry about higher base rate interest rates, they do not always directly affect your mortgage interest rate.

Stability  

The base rate set by the Bank of England has peaked for this year. Therefore, 2023 should offer much more stability, certainly for the first quarter. This will mean a more stable housing market, which means buyers and sellers can remain confident about making their moves. It should also mean that the 2023 housing market will get off to a good start!

Confidence  

As mortgage markets rebalance, property markets stabilise instead of enduring instability. More realistic and stable interest rates returning to the levels of pre-pandemic norms encourage long-term confidence and investment. That means you can move and invest, taking the long-term view that there will be fewer bumps in the road.

Demand is still strong

Forgetting the world’s current obsession with interest rates, perhaps it’s easy to overlook the obvious. The demand for property is still relatively high compared to the shortage in supply. You don’t need to be an economist to know that this will keep house prices healthy!

The future is looking good

With strong demand, stability, and confidence all looking promising, now is a great time to start putting your future property plans into action.

Demand for rented accommodation is still growing and is likely to continue that way, offering very healthy investment opportunities, even if there are more challenging times ahead.

Even if house prices fall in the next 1-2 years, over the next five years, many expect house prices to gradually and steadily grow.

Putting the onus on quality and a healthy, long-term, and sustainable investment is the way of the future. Making houses and rented accommodations more desirable means improving the quality of life, instead of making a quick profit.

Are you looking to move home, make your first step on the property ladder, or want to invest in a great buy-to-let opportunity? Contact us today.

Now that the property market is stabilising and weathering the stormy waters of last year, we peek at some predictions and influences, you can use, to gain more success as the 2023 property market gathers momentum.

Legislation

In 2022, legislation required all new homes to produce 30% less carbon. With the cost of energy remaining a challenge, more energy-efficient homes with efficient appliances, better insulation and building materials mean new builds are raising the standards for all homeowners. As a result, home movers and developers are dialling into the importance of meeting these greater energy efficiency expectations!

Green mortgages

Some banks are now offering better interest rate deals for more energy-efficient homes. Reducing the cost of your energy bills could lead to a cheaper mortgage. Combine this with adding value to your property and in some instances, cash-back offers for greener homes from banks, going green is a no-brainer.

Embrace technology

Making your property as compatible as possible with the tech age we live in is now becoming not just desirable but essential. USB sockets, automatic and efficient lighting, superfast broadband, modern appliances and homes which offer an efficient and effective space to work from home are trends showing no sign of waning.

Don’t wait and see!

With all the tumultuousness of last year, it’s easy to sit on the fence. With interest rates stabilising, the long-term view looks good. While it’s tempting to delay and procrastinate, this influences the housing market in a way that slows it down. So, keep the market moving by moving!

Slow but steady

It’s no secret that the property market has slowed down, but with slowness comes stability. Many analysts suggest that the property market is now where it should be. Interest rates had been super low and perhaps prices increased too quickly. With less volatility, planning is easier. It may take a little longer to make your move, but it will most certainly happen.

Building blocks

With the shortage of building materials and labour, property development is generally moving at a slower pace. Whether a new build or refurbishment, it will take a little longer. If this slows down supply as prices fall a little, it’s not a bad thing. And with so many decisions to be made when undertaking a property development project, whether it’s a few rooms or an entire housing estate - Is it really such a bad thing to take a bit more time over such impactful choices? Not to mention this all helps stabilise the market.

The good news

The outlook is very positive in so many ways for 2023. Demand for rental properties will remain extremely high. Buyers and sellers are still keen and mortgage deals for first-time buyers are still good with many lenders offering 5% deposit deals until the end of this year. With things happening at a less frantic pace, the quality of building, buying, selling and living will improve, maybe things are on the up!

Looking for a new home which combines beauty and efficiency seamlessly? Browse our properties.

This year is proof that life as a landlord is not as simple as it used to be. Reforms for tenants along with new laws and legislation will make it a bit more complex. That said the great news is that demand for rented properties is still extremely strong. There is a chance you could pick up a bargain as property prices slow. These changes help protect landlords and tenants so it should be another good year where standards across the industry rise.

Better protection for tenants

The renter's reform bill could become legislation this year if the government have their way. Giving more rights to tenants will also force unscrupulous landlords to up their game and stop cutting corners. This will raise standards and rights for renters and stop your properties to let potentially suffering from bad landlords undercutting you.

Higher capital gains tax

The tax-free allowance for landlords selling a property will be reduced significantly from April. This means you could pay more capital gains tax, so if you want to avoid it, and you are thinking of selling, better to sell sooner rather than later. There will be further cuts in 2024, meaning your tax relief when you decide to sell will be halved.

Buy-to-let mortgage rates

Mortgage rates while higher than they used to be, are now much more stable than last year. This means you can plan for the future once again and calculate costs more accurately.

Higher demand

In 2022 demand for rented accommodation was huge. This year demand is still very strong.  Fewer people can afford to buy due to the cost-of-living crises and the hike in interest rates. It’s expected that landlords will increase rents in order to cover costs but also to reflect the huge demand and get a better rental yield.

Add to your portfolio

With house prices levelling out and falling now is the time to add to your portfolio. Rental yields are good, and demand is very high. Some landlords will choose to sell, while savvy investors will seek new properties to develop as buy-to-let businesses. Asking prices are much more open to lower offers than last year so you might just acquire something that before was not as good as an investment.

Financial help for energy efficiency upgrades

Landlords who meet certain criteria might be eligible for government assistance with £1bn to help homeowners to insulate their properties. The aim is to improve energy efficiency which will help landlords with providing energy-efficient, appealing homes.

Outlook

There is a lot going on in 2023, and if you are a landlord you are most likely to incur more costs. With rental demand growing now is the time to invest while providing great places to live for tenants. As the industry becomes more regulated, standards rise in so many ways, elevating the industry and creating a more stable investment prospect.

Tenant demand has never been better. Browse our properties.

We have all heard it before. “Moving is one of the most stressful things you can do.” Compared with many other more serious predicaments in life this is of course not true. Like flying to the moon or near-death experiences! However, it’s right up there with the big stuff like your career and relationships according to some experts.

It’s got everything, from hurting your back by lifting large furniture through narrow spaces to worrying about paperwork, and the emotional roller coaster ride of saying goodbye to friends and family you might not see for a while. Then the elation and excitement of a new home and maybe a new life. With all this going on it’s easy to get stressed. There is so much to think about.  We have come up with a few tips to help you make the big move less stressful by breaking it down into manageable pieces.

The sooner you start the better

The longer you put things off the more they fester in your mind. Instead simply packing a few things earlier will stop you from becoming stressed thinking about the huge task ahead. Start with the little things. Stuff you don’t use often, an hour here and an hour there. Don’t make it a task. Then you are already ahead of the game.

Come up with a plan

Make a nice cup of coffee or tea, or something stronger! Sit down and relax, then scribble down a plan. Write a list to break each of your tasks into smaller chunks, perhaps using titles such as – the happy day, for when you move in.  Breaking your tasks down like this will help you keep calm and gives you a plan to stick to while reducing the chances of the unexpected. Perhaps have a packing section, a pre-move checklist and a post-move checklist, to deal with the change of address!

Budget

It’s always a good idea to create a budget. Moving can be expensive and the more time you give yourself to plan the costs and see where you could save the better. If you are using a removal company, shop around, while they will make your life easier, if the cost is more than you can afford you may find yourself stressing over money.

Don’t forget yourself!

Your mind will be teeming with everything to do with your new home. Remember to look after yourself, plan breaks on the big day - a time to eat and a time to rest.  When you get stressed, remember to breathe. When you move in, sort the bedrooms first. This process will take a few days and you will need to sleep well. Perhaps pack a self-care box, so you are not frantically looking for something that is essential to you.

Say your goodbyes

Remember to set aside some time to say goodbye. It’s important to do this and if you don't plan it you may find you are trying to do too much at once; packing, while saying goodbye. It could cause an emotional and stress overload!

Finally

There is no doubt following these steps will reduce your stress levels massively and with a bit of luck you will be able to enjoy the big move!

Can’t wait to move into your forever home or looking to make your first big move?  Get in touch.