As of August 1st 2022, house prices climbed to the highest levels in almost two decades. Caused in part by a record imbalance between supply and demand, soaring inflation, a severe living squeeze in addition to an energy crisis, this has resulted in ‘boom or bust’ as the primary rhetoric of the summer season.
Further emphasised by contradictory advice from experts all across Britain, house prices increased for the seventh consecutive time, while interest rates went up for the fifth time in June – and are expected to go up once again this week.
Research from iPlace Global indicates that over a fifth of Brits (21%) had their house move delayed because they got something wrong of didn’t have the right paperwork, while one-in-ten overpaid by thousands during their house move due to not understanding the process. In one of the toughest socio-economic periods and markets of British modern history, property concierge platform, Moveable, has created the definitive guide to help struggling buyers navigate the peaks and troughs of the ever-changing UK housing market.
How to Beat the Competition:
In today’s market, competition is defined by speed. One of the main factors holding back prospective buyers from securing a home is the lack of readiness to sync a chain and move forward quicker than other buyers with their eyes on the same property. Because of this, demonstrating how prepared you are when looking to buy – specifically – being ‘contract ready’, will always be a defining benefit when pushing your offer through. If you can validate that you have everything prepared – from mortgage agreed to conveyancer lined up, and your chain end to end secured – you will most likely be the most attractive buyer for a seller to consider. Having everything contract ready will also improve your negotiating power around the final price with your seller. This is where Gillingham’s leading estate agents can provide valuable assistance.
A Guide to Conveyancing
Research from The Law Society reveals that over a third of home-movers have limited knowledge when it comes to conveyancing, while one-in-four homebuyers are willing to pay more for a faster conveyancing experience due to lengthy delays. With a severe backlog within the process – fuelled by last year’s stamp duty rush – homebuyers are still facing significant delays in this area.
It is important to ensure that you’re well-prepared for this process – make sure you have money on account (around £400) before the conveyancing process begins, have proof of ID ready, check and provide your source of funds, remain proactive and communicate with your conveyancer, and don’t forget to apply for buildings insurance. Many home-movers lack the knowledge around conveyancing; therefore, being as prepared as possible could assist with shortening delays in this area.
Keep Your Eye Out for Regeneration Projects:
When looking for an area to buy in, be wary of any regeneration projects that are going on as a report from CBRE found that houses in these parts of the country enjoy almost 5% above the average price growth. This means that your home will likely grow in value after purchasing which could provide you with some much-needed spending power when moving to your next and potentially bigger property. Regeneration areas are more likely to reflect dips and peaks in the market, so moving swiftly in snapping one up which has major ‘flip value’ presents a significant opportunity for budding developers. Proprietary research from Moveable shows that a staggering 24% of millennials are looking to buy a home to develop, rather to live in, highlighting the desire amongst young Brits to capitalise on booming prices.
Shared Property Ownership
Surging house prices and the turbulent nature of the housing market have noticeably shifted societal connotations when it comes to owning a property. As a result, fractional ownership amongst friends and family is serving as an innovative way of stepping onto the property ladder without breaking the bank. A study from Moveable found that over one-in-ten Brits are buying a home together with their friends, siblings or family members, while a further 36% of millennials are waiting to get into a partnership/marriage before purchasing their first home – because they simply can’t afford it on their own.
Owning a property as beneficial joint tenants means that the property belongs to both owners jointly. The tenants must act together as a single owner for all transactions, including re-mortgaging and selling. As joint tenants, the owners do not own specific shares in the property and do not have the ability to give away a share of the home in a will. If either owner passes away, their interest in the property passes automatically to the other party.
You can also own the property as tenants in common, meaning that the property belongs to the owners jointly, but each owner also owns a specific share of its value. An owner can give away, sell, or mortgage their share, and if an owner dies, their share of the property passes to the beneficiary in their will.
Look Out for Green Upgrades:
A new study from WWF and ScottishPower has revealed that green upgrades could help homeowners reduce energy bills by up to £1,878 and cut carbon emissions by over 95% over the lifetime of their installation. Further to this, the research also revealed that these upgrades could boost the value of their property by an average of £10,000. Amidst such market volatility, significant upgrades to make your home greener could add a substantial amount to the total value of your home.
As households increasingly look at options to reduce surging energy prices, many are now turning to long-term options to reduce costs as well emissions. Analysts have warned that prices could remain high for years, and because of this, over a third (36%) of homeowners are prioritising energy efficiency in their home this year. A further 21% of millennials (25-34 year olds) are even prepared to move homes in order to live more sustainably.
Simon Bath, property expert and CEO of iPlace Global, the creators of Moveable, discusses how homebuyers can weight the odds in their favour amidst rising prices:
“Prospective buyers must take the time to understand the different aspects of the property market in order to secure a home given the current climate. Having all your ducks in a row will ultimately save you from overpaying by thousands, gain a significant advantage over your competitors, and prevent any delays that may occur.”
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