Market Comment (October 2022)
You might struggle to keep up with the house moves at 10 Downing Street, but for all other property market and house mover news, Trading Places is here to help you as best we can.
Energy efficiency is essential in current housing market
There is much for homeowners and prospective buyers to focus on right now when it comes to money, but there is no denying increasing energy bills is an integral part of people’s thoughts when it comes to finances, and homes.
A recent study by Help me Fix, spoke to more than 1,000 households who have purchased homes in the past six months. Findings show 53% of respondents said the energy efficiency rating of the property was an important consideration when looking for a new home.
74% of respondents say energy efficiency is now more important because of the cost-of-living crisis, and 77% of respondents say they’re making a conscious effort to improve the energy efficiency of their home.
This is a state of affairs which impacts buyers and vendors. If you’re looking to sell your home, you need to know what matters to buyers. A few years ago, an outdoor space and an extra room was high on the list of requirements for buyers, but now, financial and energy efficiency drive buyer interest.
Whatever your next move in the market is, we listen to your needs, and help you make informed decisions.
Ettan Bazil, CEO and Founder of Help me Fix said: “Many households will find themselves stuck between a rock and a hard place at present, keen to upgrade their home to make it more energy efficient, but unable to cover the cost of doing so with our household finances currently spread thin due to the cost-of-living crisis. But while a new boiler or double glazing is an expensive way to cut energy costs, there are a number of smaller, more affordable endeavours that can help cut your energy bills.”
More homes are coming to the market
One of the biggest challenges in the housing market, for a sustained number of years, has been a lack of homes for sale. Demand has vastly outstripped supply in recent times, and this has been a significant factor in rising house prices.
New information provided by Propertymark suggests that the number of homes listed for sale is rising, even if its still below pre-pandemic figures, and below the demand for homes.
The most recent Propertymark study indicates there are 30 homes for sale per members branch, which is a significant rise on the January 2022 figure, where there were just 19 listed properties per members branch.
However, while this rise is welcome, with the number of house hunters per branch listed as 83, demand is still outstripping the supply of homes. There is a lot of talk about when house prices will fall, and there are reasons to believe that will happen. Then again, when the demand for homes is greater than the supply of property to the market, there is every chance that prices will remain high, or at least not drop in the manner some industry experts believe.
Nathan Emerson, Propertymark CEO, commented: “Over August and September, we have seen an increase in people wanting to get their homes valued and sold. This is great news for buyers who have missed out previously. With the economic climate changing, sellers will need to be realistic about the prices they might achieve, but as most people move every 15 years or so they are still seeing a considerable lift in value from what they would have paid.”
Mortgage holders spending more of monthly income
In January 2022, the proportion of income the average homeowner spent on their mortgage was 16%. As of October 2022, this is now 22% of a household’s gross income, with the average monthly mortgage payment standing at £1,139.
With the average two-income household earning a gross sum of £5,270 per month, more money than before is going on mortgage payments. With virtually every other bill rising too, households must consider their finances carefully at this time.
Jonathan Samuels, CEO of Octane Capital, commented: “The current outlook for the nation’s homebuyers and owners is becoming increasingly difficult and it really demonstrates just how high the cost of homeownership has climbed when nearly a quarter of household income is swallowed up by mortgage repayments. What’s more this proportion of income required to cover our mortgage repayments has been climbing steadily since the start of the year and is likely to continue doing so, as mortgage rates are predicted to increase to as high as six per cent.”
While media articles about rising mortgage costs tend to focus on existing homeowners, these increases make things increasingly difficult for prospective buyers too. At Trading Places, we know the challenges buyers and sellers face, and we are committed to providing you with actionable advice and guidance.
Can we help you move in 2022?
If you would like to learn more about Leytonstone, what the area has to offer, and how to achieve your goals in the local property market, we can help. To arrange an appointment, call us on 020 8558 1147 or send us an email at info@tradingplacesproperty.com
You will find Trading Places Estate and Letting Agents at 46 Church Lane, Leytonstone, London, E11 1HE; and we look forward to assisting you.
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