Caution – but Business as Usual
What an amazing week that has been in the property market!
The new government has decided to redesign the wheel and completely change the economic policy of the Boris Johnson government. Whatever your political point of view, the actions taken clearly haven’t gone down well with the markets and seem to fly in the face of the priorities of the Bank of England.
The turmoil created has left many homebuyers and owners wondering what the future may hold for mortgage rates and payments, especially those that are hoping to buy in the next 1-2 years or whose fixed rate deals are coming to an end during that same period.
Kenilworth may perhaps be less vulnerable to the potential issues, with an older population and probably a higher percentage of property owners who are mortgage free or with much lower loan to value borrowing. However there are still a proportion of first time buyers in Kenilworth, there are also a volume of rental properties which will be mortgaged on buy to let deals.
And what will happen to prices through all of this? The million dollar question. The cost of home ownership is set to increase, so demand may be dampened to a certain extent whilst rents will also increase as landlords pass on the additional costs to their tenants. However, there is still a shortage of supply as the number of new homes being built continues to fall short of the targets set, so it is unlikely that prices will fall much, if at all, though they will probably fall in real terms as inflation outstrips any price increases over the next few months.
If you are buying then now could be a good time to find bargains so keep your eye on the market for motivated sales and deals to be had. Shrewd buyers will realise that the next few months could be a fantastic time to purchase before the market recovers and heads north again as it inevitably will.