Our outlook from Managing Director, Charlie Panayi
For the Isle of Wight specifically, I see the market performing well still throughout the year. With a far lower expected drop in prices due to the lifestyle factor with the flexible approach to working environments continuing, along with homeowners considering where and who they live with.
We have seen already in January a huge increase in demand here on the island, along with an influx of new properties coming to market. Re-generating and giving confidence of the market moving forward.
It’s realistic to take the viewpoint that the property prices will marginally fall throughout the year, however this will still be significantly higher than pre 2019.
It’s too early to say what will happen for sure during 2023. However, it’s clear to see that the economic outlook has improved in recent weeks, however the rising costs of living will continue to squeeze affordability. The economic outlook has improved slightly in recent weeks but the squeeze on household disposable incomes is very real with a direct impact on sales activity.
That said, the pressure on incomes combined with the costs of running homes is likely to drive a certain amount of movement in the market in 2023. People have huge amounts of equity in their homes over the last decade of property price increases (71% as per previous blog), therefore this will still encourage people to move home by releasing equity, and moving to more affordable housing. In turn continuing to move the property market along in a positive trend.
Hometrack's latest Value of Housing report found that the total value of homes in the UK is over £10.5 trillion. With circa £1.6 trillion of mortgage value, there is almost £8 trillion in housing equity in the UK.
I point this out as it's important for people to remember, the longest it has taken equity value to double in UK property is 14 years. The thought process of waiting to see what happens make's no sense. If you are in a position to proceed, you should! If the rates drop, you refinance.
We have put together a list of things to look out for when viewing a property. When viewing a property its easy to be distracted by decor and views, many main aspects of a property get overlooked and can end up costing a lot of money and issues to rectify down the line. Its important to remain openminded when at a viewing, don't be afraid to look around in depth and ask questions to the estate agent. The agent carrying out the viewing will usually have a good understanding of the property and if there is anything they aren't sure of ask them to find out and get back to you.
The UK rental market right now is BOOMING! Supply and demand of tenants to available properties is at an all time high. If you've ever been thinking of purchasing a second property as a 'Buy To Let' or 'Holiday Let' then now is the time. We have tenants referenced and waiting for properties right now.
· 12.1% increase in rental values over the last 12 months. This is more than double of earnings at 6%
· Demand is 46% above average while supply is 38% lower
· Affordability for a single renter is at its highest in over a decade at 35% of average weekly earnings
· Demand on one-bedroom flats has seen its highest demand in ten years as renters are seeking better value
· Rental affordability will start to hit the increase in rent prices in first half of 2023
· Rent growth likely to slow to maximum 5% by end of 2023
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Being a landlord isn’t easy, with legislation changes adding to landlord responsibilities such as EPC’s, electrical safety regulations, Right to Rent checks and further. The pandemic added further complications through the process with temporary changes to legislation, with many landlords still wondering what is/isn’t required and seeking more advice than ever.
Buying an investment property – A beginners guide on what to look for when buying
Buying an investment property has been a great investment decision for many years in the UK, rightly so, with the demand for rental properties in higher than ever before as we speak due to the house pricing. If you’re able to invest in property, it can be one of the most beneficial assets to have.
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