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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.
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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.
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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.
Key Points
· 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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3 months management FREE if using fully managed service!
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.
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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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Often, I am asked “how do I look after my money better”, normally in the case of buying a property, however these tips help in everyday life. Saving and budgeting can seem daunting at first but having a fixed goal that you can focus on will actually be a source of calm once you see it working. It helps visualise an exciting future for whatever your goal may be – buying your first home, starting a family, buying that new car or simply not living pay cheque to pay cheque!
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A common question or statement I am hearing from some buyers now is… “I’m going to wait until the rates drop or see what’s happening first.”
The answer simply put is do not wait… buy now! If mortgage rates do come down, you can re-finance at the lower rate.
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Are you thinking of selling your home? The housing market is still busy, so this may be as good a time as ever to take advantage of this and put your home on the market. There are still high numbers of homebuyers looking to buy right now, so make sure you give yourself the best chance of attracting them and getting the best price for your property. Here are a few tips to give your home the wow factor!
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Politics affecting rise in borrowing costs
The political and economic turmoil over the last few weeks/months meant the average mortgage rate spiked at around 6%. However we have seen that drop to around 5.4% in the past week. There are of course better rates out there, this is based on an average 5 year. Of course the health of the property market is linked to the health of the economy, most being the cost of borrowing. Looking ahead within the property market there are various elements to consider. First, the lifestyle factor of your area. Second, the mortgage rates heading into 2023.
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Liam Nevitt - Property Sales Consultant
Liam has a proven track record in both property and sales industry with over 10 years’ experience working within different industries, he has a confident and enthusiastic approach to any task that he is given and always strives to deliver exceptional customer service. Liam joined Red Squirrel just over a year ago to continue his professional development as working within the property industry has always been something he has wanted to do, and is keen to take on the exciting challenges ahead and achieving the best results for our customers.
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As I’m sure your aware, the current financial status of the UK as well as the housing market is completely up in the air at the moment. There are also a lot of misconceptions in the media regarding the property market as we speak, these issues that aren’t necessarily true or don’t match to the unique way of life on the Isle of Wight. The Island has always had its own sort of market and doesn’t seem to stay in line with the average market trends, therefore any ‘averages’ have always got to be taken with a pinch of salt.
House prices on the Island have shown a 0.35% increase throughout September so house prices are still on the rise, however we are starting to see a slow decline.
The demand for people wanting to sell on the Island is still on the rise, we’ve seen a 5.5% increase in new listings, and although the demand for properties is still high on the Isle of Wight, the amount of sales agreed in September saw a 2.3% decrease.
