Property Availability

Over the last few years as demand for all types of residential property has surged in the East Midlands supply has not met demand. Rising house prices and a shortage of stock has fueled a strong seller's market and frustration for buyers. Many vendors have not been able to find their next home ( or have taken longer than normal ) and competitive bidding on the property has been commonplace with frustration rife in the marketplace. Buyers who are financially able and in a proceedable position ( with sold or completed chain/non-dependent on sale ) have enjoyed a significant advantage over those who have not sold or even put their own home on the market.

At the end of 2022 and certainly in the early part of this year, we are starting to see market conditions change as a result of several factors including cost of living, higher energy bills, fuel prices, higher interest rates, market confidence and negative media reporting falling house prices and stricter lending criteria.

At Alexander's in recent weeks, we have seen a record number of market appraisal valuations carried out across our five offices covering the East Midlands region and the motivation to move and commitment to selling is apparent. There is no doubt that we will be seeing an increased number of homes coming to the market over the next couple of months, especially as we move towards the traditionally busy time of looking to go on the market before the Easter period is upon us.

We are pleased to report that on the whole vendors are willing to be more realistic and, on the whole, acknowledge changing market conditions and appreciate that achieving a successful sale within a reasonable time frame needs to be priced correctly based on substantiated, honest advice. We are ensuring current vendors' asking prices are reviewed where necessary and assisting potential vendors who have been subject to overambitious or in some cases, poorly appraised valuations where considered price reductions need to be applied. This will result in more opportunities for buyers and those vendors who align themselves correctly will give themselves more opportunities in the future. There will be opportunities to negotiate and if you are selling and buying in the same market will appreciate the relativity.

We have some superb properties currently being launched from first-time buyer homes to some of the finest homes across the East Midlands, properties for renovation and exciting development opportunities. Committed vendors need a committed agent who can back up their advice with results and experienced, honest advice.

Whatever you are looking to buy we would love to help, get in touch so that we can help you make your move happen in 2023! Register Here.

Mortgage Rates

Following the Bank Of England's decision to increase the UK base rate to 4% earlier this month ( February ) there is much debate as to whether there will be further increases and how banks and other lenders will respond.

Many economists and senior Bank Of England policy makers have indicated that more increases are likely with the latest increase to 4% taking the base rate to its highest level in 14 years. The last time it came close to this point was in October 2008, when it stood at 4.5 per cent.

Despite this mortgage brokers are rates for fixed rate mortgages to continue to fall. The reality of being able to fix at a lower rate than base rate would be normally dreamland but despite the consecutive upward trajectory base rate rises fixed mortgage rates have been falling since September /October of 2022. Although those coming to the end of a fixed rate taken during the low in rates of recent years will still be faced with higher payments than they have been used to, it’s a far cry from the prospect of rates at 6 per cent or more.

There are several reasons for a fall in rates. One is that far fewer people are applying for mortgages as the market cools, so lenders are having to decrease their rates to get new business.

Another reason is that lenders have also already priced in hikes to the interest rate, meaning they do not have to change their pricing after the Bank’s increase to the base rate.

It has been reported recently by brokers that there is plenty of margin for lenders to drop rates. Tracker and variable rates will increase but fixed rates will stay the same as they may reduce slightly as lenders get more competitive.

Your current mortgage status, qualified affordability and personal circumstances will of course be key to your next move and why it is so important to consult with your financial advisor or mortgage broker.

At Alexander's we have a network of independent financial advisors who are navigating the changing market and will be only too pleased to give some initial, no obligation advice.

Please do get in touch, whether you are looking to sell or buy we really would love to help!