It feels quite long ago somehow – perhaps because the regime change lasted such a short time - but the mini-budget authorised and designed by then Prime Minister Liz Truss and Chancellor Kwasi Kwarteng had an immediate, dramatic and chilling effect on the housing market, back in September 2022.
But the good news is, in Spring 2023, the green shoots of recovery are happening not just in nature but in the housing market, too.
There’s plenty of evidence of a home sales uplift and demand from buyers and potential buyers is still strong.
The turmoil in the markets, unleashed by last year’s proposal for £45 billion of unfunded tax cuts, caused a fall in the value of the pound, an increase in the cost of UK Government borrowing, and of course a concomitant rise in mortgage rates.
This inevitably led to a fall in sales, but agents now report that supply, demand, and sales volumes are recovering.
Propertymark, the professional body for the property sector, says in its latest report for March 2023 that the number of sales and appraisals month on month remains healthy.
Big increase
The average number of viewings per property is 3.2, up from a low of 1.8 in December 2022.
The number of properties for sale is approaching pre-pandemic levels and represents an increase of 29% since the same time last year.
There has also been a big increase of 160% in thenumber of market appraisals requested, around a fifth of which translate into sales.
Jeremy Leaf, former chair of the Royal Institution of Chartered Surveyors, speaking to Property Industry Eye, said: “The increase in activity over the past few months has made us appreciate that the end of the hangover is approaching, and longer-term prospects are improving.”
All this good news is coupled with the fact that the compelling reasons for moving house remain unchanged.
Buyers still want to upsize or downsize, or have to move for work or family reasons.
And against a background of strong employment with rising pay, plus better mortgage rate deals emerging, all this will give more confidence to buyers and sellers.
While April’s inflation figures did not show as much of a drop as expected, it is heading in the right direction – down from 10.4% to 10.1%.
Employment statistics are strong – unemployment is just 3.8% - and wages grew almost six per cent in the first quarter of 2023.
Although house prices are stalling in some areas or have come down slightly, this should not put off home movers as they are likely to pay slightly less for their next property, and of course it is good news for first time buyers.
In fact, figures from the Greater London Authority show that while prices dropped slightly towards the end of 2022, they are still up 6% year on year, showing that property remains a sound investment.
Working from home, now an accepted custom by many employers, means that buyers are happy to move away from the congestion and noise of more central areas.
They are looking afresh to the suburbs, where you can get more space for your money, and south-east London remains popular.
Here at Proctors we cover the areas of Beckenham, Bromley, Shirley, Wickham and Hayes. We’re not just local estate agents, we are local people too.
We are committed to making sure you get the best customer service and support to help with your move, so whether you’re buying or selling, why not contact us?