In the face of fluctuating interest rates and concerns over the cost of living crisis, it’s only natural for house hunters to feel a little overwhelmed right now.
But here at Holmfirth estate agent Applegate Properties, we’re keen to show our clients that there are still a number of reassuring market trends and updates, that present opportunities large and small at every turn.
Catch the key insights from this month, in our penultimate property news round-up of the year.
Buyer and seller determination going strong
According to British property search portal, OneTheMarket (OTM), residential properties are selling at good speed despite recent news on rising costs. What’s more, buyer determination has shown to filter through to sellers, with 82% confident they would sell their home within the next three months – which is up 3%, from 79% in September.
According to the company’s latest data, 60% of properties were also Sold Subject to Contract (SSTC) within 30 days of being advertised for sale in October. This is significantly higher than the 53% recorded in the month prior, and a percentage that has not been seen since June.
Inflation rates expected to fall in 2023
While the Bank of England’s Monetary Policy Committee (MPC) is expecting the current recession to be long – with a prediction for it to last two years – economic growth is forecast to contract by 1.9% next year, and 0.1% the year after.
To put these figures into context, this means that interest rates will not need to rise as much as markets currently suggest, and that the recession will not be as severe as a result.
With the MPC also predicting that inflation will be under its 2% target in two years’ time, it’s hoped that the Bank Rate – the official cost of borrowing – will also be reduced. As a result, this should lead to lower mortgage rates too.
Move towards greener energy gathers momentum
According to the Department for Business, Energy and Industrial Strategy (BEIS), 2022 registered the largest increase in small scale solar panel installations for five years. The data shows 1.2 million solar PV systems had been installed in the UK by the end of September – 97% of which generate up to 10KW of electricity.
This is positive news for the sector – not least as the Government’s 2050 net zero targets edge closer. Responsible for emitting 64 million tonnes of carbon dioxide equivalent (MTCO2e), the latest research from Savills suggests that homes contribute one-fifth of total CO2 emissions in the UK at present.
Build-to-rent volumes soar by 10%
The build-to-rent (BTR) sector continues to help plug the housing supply gap, as construction booms significantly to meet the needs of tenants in the UK.
Investment levels in this burgeoning space have risen by 10% in the third quarter of 2022 – hitting £1.435bn, according to Knight Frank. This brings the total investment so far this year up to £3.165bn, which is up from £2.895bn at the same time last year.
That’s all for November! Come back next month, for the latest news and views in the property market.