21 Feb WILL THE CURRENT PROBLEMS IN THE ECONOMY HAVE AN EFFECT ON THE RESIDENTIAL PROPERTY MARKET?
There are some coming ‘bumps in the road’ including increases in National Insurance, gas and electricity prices rising, possibly food prices rising also and shortages, partly attributable to the UK leaving the European market block and exacerbated by tensions on the Ukraine border with Russia. There have always been economic problems, sometimes becoming dimmed in memory by the passing of time, but property values have held up surprisingly well throughout. Interest rates, although rising of late, are miniscule in comparison with rates in the 1980’s of nearly 17%, so mortgage costs should be modestly affected.
Employment prospects, particularly for skilled and specialist workers, are strong, in high demand and are well paid. These constitute an important number of aspiring housing market purchasers.
The supply of properties will increase as we move further into the year, for many reasons. Some people want to sell because of moving with employment, re-sizing, both upwards and downwards as children leave home and for age and health reasons. Divorce, perhaps more common now, being more socially accepted and of course death, as the ‘Baby Boomer’ generation and earlier, move into their latter years.
An additional phenomenon, is as a result of the Pandemic, which has increased awareness of the quality and finite nature of life and the desire to increase that quality, is highlighted. The need for space to work from home, with ideally a dedicated work area or an office, for those who have chosen and have the opportunity to adopt this way of life, is more prevalent.