Positivity is like a fresh spring breeze; it just makes you feel good and clears your head! With so much negativity bandied about in the media, with sensationalist headlines, it’s easy to become worn down by all the doom and gloom. Your head becomes clogged with confusion, which is almost as uncomfortable as a winter cold. On the other hand, you are an optimist and want to move forward based on informed choices and good reasoning.
The housing market is built on good foundations
A significantly large part of property sales are cash buyers and buyers borrowing less than 50% of the value of their property.* This is hard to hear for those of us who have to borrow much more to progress on the property ladder. However, the good side to this is that it helps stabilise the property market and the wider economy. Unlike so many other sectors of public and private borrowing, the house of cards scenario is not as precarious!
A stable and secure borrowing and property market
It’s now widely accepted that while interest rates are higher than they have been over the years, they are set at more realistic levels. It’s comparable to responsible lending; prior to this, borrowers could almost borrow as much as they wanted, leading to big repayment problems during the banking crisis.
Since the introduction of responsible lending, the future is less susceptible to the perils of overborrowing. Interest rates may be higher, but the result is a more stable borrowing market and a more stable housing market. Interest rates are stabilizing, and even if there are more adjustments to the base rate, a small increase will not affect your mortgage interest rates.
House prices remain resilient without soaring, with good long-term growth
House prices are no longer soaring towards the sky or dropping through the floorboards. Instead, due to low supply and high demand and good levels of employment, prices are realistically stable. When it comes to making an offer, there is also some room for price manoeuvring, while long-term growth prospects remain favourable.
With 5% mortgages available to first-time buyers thanks to the government’s Mortgage Guarantee Scheme, extended until December 2023, there is a lot for first-time buyers to feel good about.
Demand for green homes is increasing
Homes are becoming greener and leaner, and as such, they are becoming more desirable. Houses that are more self-sufficient in terms of energy fetch higher prices than homes that are more expensive to run.
Homes are becoming more energy efficient
The government’s ECO+ scheme, due to start in April 2023, will run for three years and, with a pot of £1 billion, will give big energy suppliers the means to offer customers grants to make their homes more energy efficient by improving insulation.
The standard of homes has increased massively
It’s no secret that during the pandemic many homeowners spent a lot of time and money making home improvements. Today, as you get on the move, you can enjoy the fruits of all those labours and find a property that is in great condition; modernised, energy efficient, stylish, and ready to be lived in. All you have to do is enjoy it.
Make some positive steps towards buying the home you truly desire.
Contact us for more information.
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