We would like to take this opportunity to wish you all a merry Christmas and a happy, healthy and prosperous 2023.  If your plans for next year include a property move, to become a landlord, to upsize or downsize, or to market your property discreetly, please do come and talk to our team of experienced, professional and friendly Sales and Lettings staff in our two local offices - Storrington and Pulborough.

A no obligation, valuation of your property and some good advice, could be exactly what you need to start your property move in 2023 - and don't believe everything you hear, not everyone is on the property portals on Boxing Day! Enjoy your time with family or friends and contact us when we are back open - see below.

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.

As we approach the end of a turbulent financial year, many landlords in the UK will be weighing up their options going into 2023 and debating whether to remain in the buy-to-let market. Despite an uncertain economic outlook, we can take a look into what’s happening right now and decipher whether or not buy-to-let will continue to be a worthwhile investment going forward.

 

What’s happening to buy-to-let mortgages?

In the fallout from former Chancellor Kwasi Kwarteng’s renowned mini-budget, just like the rest of the market, buy-to-let loans took a hit.

 

The number of available products decreased to just 988 different deals in the wake of the announcement, compared with 1,942 before the mini-budget, according to Zoopla.*

 

This is due to interest rates increasing significantly since the beginning of the year as a result of the hikes to the Bank of England’s base rate, which is the official cost of borrowing.

 

However, the mortgage market is currently in state of flux. Rates have slightly fallen after some market confidence was restored by the appointment of Jeremy Hunt as the new Chancellor, and they may fall further as the cost of government borrowing continues to drop.

 

Are any new regulations being introduced in 2023?

The government has pledged to introduce the Renters Reform Bill, which includes measures to protect renters from unfair rent increases and evictions. Homes will also have to meet minimum standards and it will become easier for renters to have pets.

 

The changes are centred around improving the quality of homes in the private rental sector, with the government estimating that 21% of properties are currently unfit.

 

However, the new bill will not lead to significant extra costs (if any) for landlords who already maintain high standards.

 

What’s happening with rents?

Rental rates are currently rising in line with mortgage rates. Data from Zoopla’s latest Rental Market Report found that new rental rates have increased by £115 during the past year to average at £1,051.*

 

This sharp spike is due to the disparity between supply and demand in the sector. With too many landlords exiting the market due to uncertainty, there are too few properties available in the private rental sector to catch up with current demand.

 

The number of rental homes on the market is currently around half the level seen during the past five years.* Meanwhile, the rate of demand for a rental property is around 142% higher than five years prior, according to Zoopla.*

 

We can expect that the trend of demand outstripping supply is likely to continue into 2023, putting further upward pressure on rents.

 

Should I purchase a buy-to-let property?

Those looking to invest should not be deterred by the current conditions. In fact, with rental demand soaring, first-time buyers postponing their step onto the property ladder for the time being, and rents reaching new highs, you are likely to be in a strong position if you choose to invest now.

 

What’s the outlook?

The buy-to-let market – like the rest of the market – is likely to encounter a few ‘bumps’ in the coming year as a result of hiked-up mortgage rates and the cost-of-living squeeze.

 

But with demand far outweighing supply for rental homes, and strong rent increases expected going into 2023, property investment remains a safe bet over the long term, in spite of any short-term hurdles.

 

If you’re interested in becoming a landlord, contact our team today for advice.

Zoopla*