Whilst the new year calls for a quieter period in many industries, the property market remains a fast-paced and exciting space, as we transition into 2023.
From evolving relationships and growing activity, to the extending of vital schemes and introduction of thought-provoking resources, there are plenty of headlines to digest this January.
Luckily, our friendly estate agent team has hand-picked the must-know insights. So sit back, and keep reading…
Buyer and seller engagement going strong
Off the back of the Mini-budget, concerns around the number of property transactions that would fall as a result grew significantly. In particular, growing inflation rates – against the backdrop of the cost-of-living crisis – were expected to deter people from taking out mortgages.
However, the latest survey from OnTheMarket reveals quite the opposite. Despite being a traditionally quieter month, 60% of properties were sold subject to contract (SSTC) within 30 days – up from 53% the previous year, when the market was significantly more buoyant.
Various headwinds will still, inevitably, introduce challenges over the course of 2023. But this is an excellent sign of buyer and seller confidence, and a continuation of rebalance. At Huddersfield and Holmfirth estate agent, Applegate Properties, we have a team of experienced professionals who can help you navigate any remaining concerns.
Mortgage Guarantee Scheme extended for 12 months
Originally due to close at the end of 2022, the government-backed Mortgage Guarantee Scheme has been extended for a further year – helping buyers move home with just a 5% deposit. To-date, the initiative has already helped over 24,000 households make a purchase – 85% of which were first-time buyers.
With various headwinds making saving more difficult, commentators previously expressed concerns over the ending of the scheme. The announcement is therefore excellent news for the sector, and should boost the supply of these loans over the coming months.
Save to Buy scheme launched for first-time buyers
Housing developer, Fairview, has launched a brand-new scheme that enables money used for rent to be saved towards a deposit instead – empowering first-time buyers who thought ownership was far out of reach, with the ability to get onto the property ladder.
People who are keen to make the most of the programme must already have a deposit equivalent to 1% of the property’s value. They then hand this over to Fairview when they exchange contracts, and move into their home – having up to two years to pay this ‘rent’ and save.
Currently only available in London and Essex, the initiative is set to be rolled out to other developments later this year.
Improved energy efficiency guide introduced for rented properties
The latest energy price cap has resulted in an all-time high for energy bills – a growing concern for landlords within the private rented sector, across the UK. Not only this, but proposed changes to Energy Performance Certificate (EPC) regulations are causing further challenges too.
Offering greater levels of support and guidance, the new Energy Efficiency Guide for Rented Properties is therefore a very welcomed resource. Produced by the Tenancy Deposit Scheme (TDS), in collaboration with the National Residential Landlords Association (NRLA), the five-page paper features low-cost tips and long-term ideas to make properties more carbon-friendly, as well as information on grants that can offer additional help.
You can explore the free download, here.
That’s all for this month! Keep an eye out for next month’s property news insight, to see how the market evolves over the coming weeks.