First-time buyers could easily be forgiven for feeling daunted by the property market today. Property prices remain high while the fallout following last year’s mini budget saw inflation soar and ended years of rock bottom interest rates.
RICS highlights ‘tentative signs’ of recovery in buyer demand
It comes as the February 2023 RICS UK Residential Market Survey showed while sentiment among surveyors remains negative, declines in demand and sales may be slowing.
The headline reading for new buyer enquiries rebounded to a net balance of -29% – suggesting a drop – improving from -45% in January.
While this metric is still signalling a decline in demand and represents the tenth consecutive negative monthly reading for new buyer enquiries, it is also the least negative result since July 2022, the RICS said.
The new sales indicator was also less negative in February, improving from a net balance of -36% to -26%.
However, the average time taken to complete sales continues to rise and is now approaching 19 weeks, according to the report.
Respondents highlighted a less adverse trend in the volume of fresh listings coming onto the sales market, with the net balance highlighting a fall rather than a rise and improving to -4% compared with -12% in January and -22% in December.
Even so, the number of market appraisals conducted in February was still negative but below the equivalent period a year ago according to a net balance of -33% of respondents.
This compares with a reading of -42% in the previous month and a recent low of -55% in December.
Looking ahead, sales are anticipated to continue to slip over the coming three months, demonstrated by the near-term sales expectations net balance coming in at -47%.
But at the twelve-month time horizon, the sales outlook looks to be more stable, the RICS said, with a net balance of -8%.
This stands against -20% in January and a recent low of -45% back in August.
Surveyors were also asked about the difference between the asking price and sales price in the current climate.
In the mainstream market, covering prices up to £500,000, around 60% of respondents suggested that prices were being agreed at below the asking price.
For properties priced between £500,000 and £1m, the share jumped to just over 70%.
Tarrant Parsons, RICS senior economist, said: “The housing market continues to adjust to the tighter lending climate, with stretched mortgage affordability still weighing heavily on activity.
“Given the ongoing weakness in demand, house prices remain on a downward trajectory, and are expected to see further falls through the first half of the year at least.
“Going forward, near-term expectations suggest market activity will remain generally subdued over the coming months, although the latest survey feedback shows tentative signs that the ongoing decline in buyer enquiries is now moderating.”
HMRC: Property sales are falling
The level of property sales in the UK is declining, HMRC has suggested, after it revealed that transactions dipped for the second consecutive month in January.
The latest property transactions data from the taxman has recorded 77,390 sales in January 2023 on a non-seasonally adjusted basis, down 7% annually and 27% lower than December 2022.
“Residential transactions are similar to pre-coronavirus levels, for example the provisional seasonally adjusted estimate in January 2023 is 96,650 compared to 97,310 in January 2020.”
It comes after HMRC recorded a non-seasonally adjusted figure of 108,960 sales in December, down 1% annually and 3% on a monthly basis.
Agents and commentators remained upbeat despite the declining figures.
Most vendors ‘sell at a profit’ despite dip in house prices
The average seller in England and Wales who sold in 2022 having bought within the last 20 years made a record gross profit of £108,000, up from £96,220 in 2021, new figures show.
There are now 173 local authorities in England & Wales where the average homeowner made a six-figure gain when selling their home – 87% of which are in the South of England.
Slower house price growth in London over the last few years has meant that in percentage terms, Welsh sellers are now making bigger gains than Londoners (59% versus 57% in 2022), according to the figures provided by Hamptons, based on Land Registry data.
The uplift in seller profit has been driven by more households selling larger homes. Typically, these have been owned for longer.
Chart 1 – Average seller gross profit across England & Wales
Source: Land Registry & Hamptons
Double-digit house price growth in 2022 has meant that homeowners cashing in have made record gains. The average seller in England and Wales who bought a property within the last 20 years and sold in 2022 made a gross profit of £108,000, up from £96,220 in 2021 (chart 1, table 1).
A record 94% of sellers sold their property in 2022 for more than they paid for it, having owned for an average of 8.9 years. In percentage terms, the average seller in England & Wales sold their home for 52% more than they bought it for (table 1).
Chart 2 – % difference between purchase and sale price by region
Source: Land Registry & Hamptons
There are now 173 (or 52%) local authorities across England & Wales where the average homeowner made a six-figure gain when selling their home. This figure has risen from 116 in 2021. 87% of these local authorities were located in the South of England, down from 94% in 2021.
London is the only region where the average household gain exceeded £100k in every Local Authority during 2022. In fact, there were 17 Boroughs where seller gains exceeded £200k. Across the capital, the average seller sold their home in 2022 for £219,110 or 57% more than they bought it for, having owned it for an average of 9.3 years (chart 2, table 1).
In financial terms, sellers in Kensington & Chelsea saw the biggest gains, with the average household selling their home for £684,510 more than they paid for it 10.4 years ago (table 2). Elmbridge is the only non-London local authority that sits within the top 10. Here, the average seller sold their home for £298,500 more than they paid for it, putting it in fifth place (table 2).
At the other end of the scale, the North East with an average gain of £37,890, had no local authorities with average gains above £100k. Sluggish house price growth in the region since the last financial crash has meant that 14% of sellers made a loss on their home in 2022. However, this figure has fallen from 31% recorded in 2019. Middlesbrough came bottom of the local authority list with an average seller gain of £23,640 in 2022.
Slower house price growth in London over the last few years has meant that, for the first time in at least five years, Welsh sellers are now making bigger gains than Londoners in percentage terms (chart 2, table 1). In 2022, the average home in Wales sold for 59% more than its purchase price, surpassing the London average of 57%. This also reflects the housing market cycle, with Wales having seen stronger price growth in recent years, partly due to its slow recovery from the 2008 financial crash.
Chart 3 – Seller gross profit across England & Wales by property type
Source: Land Registry & Hamptons
The uplift in the average amount of money people have made on their property has been driven by more larger homes being sold in 2022. While detached homes made up 19% of sales in 2022, they accounted for 35% of properties selling for six figure gains in 2022. The average detached home was sold for £186,940 (or 61%) more than its original purchase price, 3.3 times the average gain made on a flat (£57,080) in 2022 (chart 3).
While the percentage gain made by house sellers increased between 2021 and 2022, weaker house price growth meant that it stayed the same for flat sellers. The average house seller in 2022 made a 57% gain on their home up from 51% in 2021, compared to 29% for flat owners in both 2022 and 2021.
Typically, these larger homes have also been owned for longer and have therefore benefited from additional house price inflation, boosting the average gain. Nearly a quarter (24%) of homes sold in 2022 had been bought 15-20 years ago, up from one in five (20%) in 2019.
Historically, flat owners have sold up sooner than house owners. However, the weaker flat market has meant that more flat owners have had to stay put for longer. Those who have owned a flat for longer and have built up more equity have been most able to afford to trade up. Of all the flats sold in 2022, just 34% had been bought within the last five years, down from 41% in 2020. As such, the average flat owner who sold in 2022 bought their home 8.7yrs ago, up from 8.3yrs in 2021, 2020 and 2019.
Aneisha Beveridge, head of research at Hamptons, said: “Soaring house price growth has boosted the money homeowners have made when they sell. House price gains are primarily driven by two factors – the length of time people have owned and the point at which they bought and sold in the house price cycle. 2022’s record breaking gains were boosted by Covid-induced changes, with a rising share of sales coming from larger family homes that were typically bought before the financial crisis. However, most of these profits are never seen by sellers as they are reinvested back into the housing market when they make their next purchase which has also increased in value.
“But house price growth hasn’t been distributed equally. Flat owners, in particular, have seen weaker price growth and are nearly four times as likely to sell at a loss compared to someone selling a house. Typically, these are first-time buyers and second steppers who have bought in the last five years and have accrued less equity in their homes. This, combined with higher mortgage rates, has limited their ability to cash in and trade up in 2022.
“While there are a number of uncertainties weighing on the market, even if prices do fall this year, it’s likely that over 90% of sellers will still sell at a profit. The other 10% will mostly be flat owners who bought in the last five or so years. The shift away from recent mortgaged homeowners selling cheaper homes towards older, more affluent homeowners selling more expensive homes also looks set to push up gains among sellers again this year.”
Table 1 – 2022 seller gains by region
|Region||£ difference between sale & purchase price||% difference between sale & purchase price||Average years of ownership|
|South East||£ 141,760||52%||8.9|
|East of England||£ 123,200||55%||8.6|
|South West||£ 112,610||51%||8.3|
|East Midlands||£ 81,510||54%||8.7|
|West Midlands||£ 80,570||49%||8.6|
|North West||£ 67,500||51%||8.9|
|Yorkshire & the Humber||£ 63,380||46%||9.0|
|North East||£ 37,890||32%||8.2|
|England & Wales||£ 108,000||52%||8.9|
Source: Land Registry & Hamptons
Table 2 – Top 3 local authorities in each region with the biggest 2022 seller £ gains
|Region||Local Authority||Average seller gain £||Average seller gain %||Average length of ownership|
|London||KENSINGTON AND CHELSEA||£ 684,510||60%||10.4|
|CITY OF WESTMINSTER||£ 473,180||55%||10.2|
|RICHMOND UPON THAMES||£ 319,350||55%||9.2|
|South East||ELMBRIDGE||£ 298,500||56%||9.3|
|EPSOM AND EWELL||£ 205,750||56%||9.6|
|East||THREE RIVERS||£ 243,510||67%||10.3|
|ST ALBANS||£ 237,550||60%||9.1|
|South West||COTSWOLD||£ 167,960||56%||8.6|
|SOUTH HAMS||£ 162,840||54%||8.3|
|BATH & NORTH EAST SOMERSET||£ 158,010||52%||8.4|
|THE VALE OF GLAMORGAN||£ 112,100||61%||8.9|
|ISLE OF ANGLESEY||£ 100,690||69%||9.1|
|West Midlands||SOLIHULL||£ 122,410||49%||8.9|
|East Midlands||RUSHCLIFFE||£ 120,750||53%||8.1|
|DERBYSHIRE DALES||£ 113,280||52%||9.0|
|Yorkshire & The Humber||HARROGATE||£ 121,260||44%||8.3|
|North East||NORTH TYNESIDE||£ 58,190||41%||9.1|
|NEWCASTLE UPON TYNE||£ 51,600||32%||9.0|
|North West||TRAFFORD||£ 169,680||73%||8.8|
|SOUTH LAKELAND||£ 104,340||50%||9.3|
Stamp Duty would rise in April 2025, higher CGT bills for landlords and other measures that will affect agents.
Jeremy Hunt announced in his Autumn Statement that Stamp Duty would rise in April 2025, higher CGT bills for landlords and other measures that will affect agents.
Chancellor Jeremy Hunt has promised to keep Stamp Duty cuts in place until the end of March 2025, but the tax will rise after that date.
“This will create incentives to support the housing market by boosting transactions,” he said.
The Chancellor said he would then “sunset” the cuts so that they are abolished but will be kept under review. He had previously said he would keep the Stamp Duty cuts but had not set a deadline for them.
Former Chancellor Kwasi Kwarteng’s mini-budget announced cuts to Stamp Duty with nothing to be paid for the first £250,000 of a property’s value – double the previous amount allowed. The threshold for first-time buyers was also increased from £300,000 to £425,000.
Hunt also told MPs as he announced his Autumn Statement that he planned to keep mortgage rates down and ensure they are “significant lower”. He said that rates were higher in the United States, Canada and New Zealand.
Top rate taxpayers will face higher bills after the threshold for the 45p rate was lowered from £150,000 to £125,140. Capital gains tax exemption amounts will be reduced from £12,300 to £3,000 by April 2024.
Other announcements include changing the threshold for the top rate of income tax from £150,000 to £125,000 and freezing allowances and thresholds for income tax, national insurance and inheritance tax until April 2028.
Source: The Negotiator
Pic: BBC News
Happy Holidays and a Prosperous 2023 from everyone at Victor Michael Estate Agents!
Property demand shifts from buying to renting amid high mortgage rates.
Demand is rising in the rental market as some would-be buyers pause to see what happens with mortgage rates in the new year, the latest data from a property portal reveals.
The number of people enquiring to letting agents to move in the rental market is up by 23% compared to last year, which leaves the total number of people looking to move in either the sales or rental market just 1% below last year’s levels.
There are signs that mortgage rates and availability are beginning to settle following a turbulent two months, with indications they could drop further next year. The data suggests that this is leading to some aspiring buyers looking at the rental market as a short-term alternative while they wait to see where mortgage rates will go.
First-time buyers have been hardest hit by the jump in mortgage rates, especially those who were already stretching themselves financially.
However, this group of future first-time buyers are likely to find competition for a suitable rental home much fiercer than in the sales market, and choice more limited.
The number of smaller available rental homes (studios, one and two bed properties) is down by 4% compared with last year, while in the sales market it is up 13%.
A property portal survey found that four in ten (42%) aspiring first-time buyers with plans to get onto the ladder in the next few years already had their total deposit saved, while a further 43% are in the process of saving.
This indicates there is a group of future first-time buyers waiting in the wings to enter the market once they feel like they have more financial certainty. Following the Autumn budget which guaranteed stamp duty savings until 2025, and mortgage rates settling down, there could be the impetus for these ready-to-go first-time buyers to join the market in the new year, especially if mortgage rates do drop.
A survey among letting agents found that on average they are managing 36 enquiries per property and spending nearly six hours managing viewings per property, in what the property portal has reported as the most competitive rental market on record, with quadruple the number of tenants as rental properties available.
The property commentator from the property portal, said: “It’s completely understandable why some buyers, particularly some first-time buyers, are waiting for some more financial certainty. Now that there are signs that mortgage rates are settling down, the indicators are that they will stabilise at a higher level than previous buyers had been used to. If someone has their deposit saved and is ready to move, they may find that right now presents a better opportunity than a few weeks ago, particularly with more choice coming onto the market and some sellers pricing more competitively in the lead up to Christmas.”
The property’s portal rental spokesperson, added: “It’s extremely frustrating for so many people in the rental market right now, with demand so high. Tenants are trying to secure viewings for properties as soon as they hit the property portals, and the stock shortage means that agents are dealing with an unmanageable number of enquiries.
“The number of aspiring first-time buyers who have now had to turn to the rental market is exacerbating the situation further. We’re seeing some more properties coming to market, but nowhere enough to meet demand.
“We’re hearing from agents that finding out more information about a tenant earlier is one way they are trying to cope with demand, so we’d recommend to anyone looking right now to give as much info as possible about their position, how quickly they can move, and to get their references ready so they have a better chance of getting the place they want.”
Source: Property Industry Eye
World’s Longest Walk? The 14000 Mile Journey from Cape Town to Magadan.
Looking for a fun walking holiday to get back in shape? Here’s a challenge. Stretching 14,000 miles (22,387km) from Cape Town in South Africa to Magadan in Russia, this route might be the world’s longest walk, and it certainly sounds gruelling.
Credit for this lengthy route goes to Reddit user cbz3000, who drew it up on Google Maps in 2019. Claiming it to be the longest walking distance possible on the site, they found a route that required no flights, ferries or other boat-crossings: just open roads and bridges. The route takes the brave traveller up through Africa, past the Suez Canal, through Turkey, Central Asia and across Siberia to Magadan.
According to brilliant maps, the journey would take 4,492 hours to walk, meaning 187 days. However, this is assuming you were walking non-stop. If we assumed a walking pace of 8 hours per day (no rest days!), the journey would actually take 562 days.
If this still sounds like something you might fancy doing and have an available 2-years to get on the road, then let’s take a closer look into some of the sights you’d have the pleasure of passing on your 16-country tour:
South Africa: Table Mountain
Start your walk fresh and energised with a warm-up stroll to Cape Town’s famous Table Mountain. Nestled within Table Mountain National Park, the mountain is instantly recognisable for its distinct table shape and its “table-cloth” cloud formations that hug the peak. The ascent to the top takes around 2-3 hours to hike and pays off with spectacular views of Cape Town and the southern coastline. Because of its flat shape, you can even follow one of several hiking routes that take walkers just across the top, some taking several hours to complete. If you’ve got time, you can drive South Africa’s iconic Garden Route.
Botswana – Safari Tour
Whilst in Botswana why not go on a Safari Tour to get a glimpse at some of the incredible wildlife of Africa? Chobe National Park and Okavango Delta are two of the best Botswanan National Parks, full of elephants, lions, giraffes, buffalo and zebra. From Luxury wooden lodges to spa resorts, there is plenty of opportunity to relax and unwind after your first 6 weeks of walking!
Zambia – Victoria Falls
This waterfall located on the Zambezi River at the border between Zambia and Zimbabwe is the world’s largest waterfall, with a width of 1,708m. Visitors can swim in the natural pools at the top, though due to their proximity to the edge, it is not for the faint-hearted! From Gaborone in Botswana to Victoria Falls, this is a nice and easy stretch of 22 days.
Egypt – Great Pyramid of Giza
How embarrassing would it be if you did a 14,000-mile walk and forgot to check out the ultimate wonder of the world? As the last remaining classic wonder of the world, the pyramids are a must-see for everyone at some point in their lives. What can be said about them? Whether it was aliens or simply an unspeakable amount of slave labour, the sheer mathematical genius of the pyramids and the many mysteries surrounding their inner passages are the stuff of legend. I hope you picked up enough snacks for the road since this stretch will take you a whopping 181 days (6 months).
Jordan – Petra
Just an easy stretch now after that journey. From one wonder to another, you must take a trip to Petra when passing through Jordan. Located in the south of the country, this archaeological site is remarkably well preserved and contains the world-famous Al-Khazneh (The Treasury) Temple, an ornate building cut directly into the sandstone rock. Believed to have been the mausoleum of the Nabatean King Aretas IV, it is the most popular tourist attraction in Jordan and recognisable from such works as Indiana Jones and the Last Crusade and the Adventures of Tintin. From the Pyramids to Petra, you’ll be on the road for a mere 2 weeks.
Turkey – Lake Van
Next stop, why not take a look at the off-the-beaten-track natural beauty of Lake Van in Turkey? With picturesque walking routes around the lake and plenty of remote hotels to stay in, this is a perfect place to relax and soak up some fascinating history. From Armenian Kingdoms to Mongol conquest, the Lake is at the heart of some of the world’s biggest empires. It even has its own equivalent of the Loch Ness Monster: the Lake Van Monster, with reports of its sighting stretching all the way back to the 1800s, so keep your eyes peeled. This stretch will take you 5 weeks.
Georgia – Tbilisi
Your final stop before Russia is Georgia, so enjoy a bit of urban respite in the beautiful capital city of Tbilisi (a popular digital nomad spot). With its cobblestoned old town and red-roofed houses, the city is wonderfully picturesque and nestles below the towering presence of Narikala, a 4th-century fortress. Wander around the city, taking in its historic churches, art nouveau buildings and brutalist Soviet blocks. With such a mishmash of styles, the complex history of this under-visited country is laced into the city’s architecture. From Van, the journey is 16 days.
Well, you’ve made it into Russia, but unfortunately, the journey is far from over. As you move further North-East, the temperatures drop, the landscape gets more and more barren and the welcoming villages to stop and rest get more and more remote. With 253 days of your journey (8 months) in Russia, you’re bound to get an excellent flavour of the customs, quirks and diversity of this enormous nation. Stock up on vodka for the road (you may need it as payment when finding yourself lost in the Siberian steppe), and good luck to you.
UK house prices set to fall ‘back to the level they were at in summer 2021.
House prices ground to a halt in October after more than two years of growth, with fresh signs that they could fall in the coming months, the latest surveyors report shows.
Across the UK, a net balance of 2% of property professionals reported house prices falling rather than rising, as increasing mortgage costs fuel greater caution among buyers, according to the latest RICS Residential Survey for October 2022.
Property professionals based in Scotland and Northern Ireland continue to report a relatively positive rise in property prices even but the pace has softened compared with a year ago.
By contrast, those in areas such as East Anglia and the South East of England were seeing prices fall – a trend that is likely to ripple out to other parts of the country.
Professionals across all parts of the UK are now, on balance, of the opinion that house prices will fall over the next 12 months.
New buyer inquiries dropped for the sixth consecutive month in October – and survey feedback on buyer demand was negative across the UK, the RICS report found.
It now takes 18 weeks on average to sell a residential property, up from 16 weeks typically a year ago.
But while the property sales market slows, rents are expected to continue rising, amid a widening supply-demand imbalance in the private rented sector.
Tenant demand continues to increase at a solid pace, with a net balance of 46% of survey participants noting a hike last month.
At the same time, landlord instructions fell. The mismatch is expected to place upward pressure on rents.
Surveyors predict that rents are likely to be around 4% higher in a year’s time, which is significantly below the existing inflation rate of 10.1%.
Simon Rubinsohn, RICS’ chief economist, said: “The latest feedback to the RICS survey provides further evidence of buyer caution in the face of the sharp rise in mortgage costs.
“As a result, the volume of activity is likely to slip back over the coming months and realistic pricing is now much more important to complete a sale.
“The settling down in financial markets could provide some relief although it may be premature to assume this will be reflected in a reduction in lending rates any time soon.
“However, the employment picture remains critical to the medium-term outlook and for the time being, that remains solid.
“As far as the lettings market is concerned, the imbalance between demand and supply still appears unusually extended, leading to rent expectations in the survey remaining at elevated levels and it is difficult to see this changing any time soon in the current environment.”
Responding to the report, Tom Bill, head of UK residential research at Knight Frank, described October as a bad month for the UK property market. However, he added that it has not necessarily set the tempo for what comes next.
He commented: “As the impact of the mini-Budget fades, mortgage rates will calm down before stabilising. The downwards pressure on prices will reduce to some degree as the economic and political backdrop becomes less disorientating.
“However, after growth of 25% during the pandemic, we believe it’s a reasonable assumption that house prices have now peaked. We don’t expect the sort of cliff-edge moment seen during the financial crisis, but we expect prices to fall back to the level they were at in summer 2021 as rates normalise after 13 years.”
Jeremy Leaf, north London estate agent, added: “Never was the saying – confidence takes a long time to build but can disappear almost immediately – so true for the property market.
“The mini-Budget frightened the life out of nearly all our buyers who are dependent on mortgages. Many have slowly emerged from hiding as rates stabilised and slowly began to fall.
“New buyer numbers have certainly dropped but we’re seeing no signs of a price collapse. On the other hand, some tough negotiations are underway between more realistic buyers and sellers with most existing sales hanging together – but some by a thread.”
Source: Property Industry Eye
Economist predicts double-digit house price drop and says its ‘good news’ for first-time buyers.
Turmoil in the UK’s mortgage market is hammering buyer demand, which has slumped in recent weeks.
In the aftermath of the government’s disastrous ‘mini-Budget’ in September, demand among prospective property buyers has fallen sharply, owed largely to the sudden recent increase in mortgage rates.
A hefty spike in mortgage rates, which have gone over 6% for both two- and five-year fixes, has made the prospect of getting on or moving up the property ladder a distant dream for growing numbers of people across the UK.
But for those who are in a position to buy property, the next 12-18 months should represent a good time to get a foot in the housing ladder, according to Paul Dales, chief UK economist of the independent global research consultancy Capital Economics.
Penning a piece for the Evening Standard on Friday, he wrote: “House prices may soon leap above the weather as the number one topic of conversation, but for all the wrong reasons.
“The housing market has been on a great run since the pandemic caused people to seek, and place more value, on more living space. In the two years since July 2020, house prices rose by 24%. That’s almost double the 13% increase in the prices households paid for items in the shops over the same period.
“But data released by Nationwide Building Society on Tuesday showed that things were changing.”
The 0.9% fall in house prices in the month of October recorded by Nationwide was the first decline since a fleeting drop in July 2021. It meant that the average house price declined by £4,000 in October, from £272,000 to £268,000.
“This [decline in house prices] is just the beginning,” he said. “My colleagues at Capital Economics who spend all day analysing the housing market think that prices across the country will decline by around 12% over the next 18 months. They are forecasting a slightly bigger fall of 15% in London.”
Dales points out that such a decline at the national level would be smaller than the 20% drops endured during the housing crash of 1989-92 and after the Global Financial Crisis in 2007-09. But after stripping out the change in prices in other goods and services in the economy, the decline in “real terms” this time round will be similar to those previous slumps.
He continued: “Admittedly, there has been very little change in the supply of homes or the number of people needing to be housed. And the imbalance between the low supply of housing and the high demand has contributed to the astounding 65% rise in house prices in the UK over the past decade.
“But what has changed is the willingness and the ability of people to buy a house, with the ability now being constrained by the recent surge in mortgage rates.”
Dales added: “The next 18 months aren’t going to be nice to homeowners, particularly those who have recently purchased a property that is now falling in price [although as long as they had a 20% deposit they should avoid negative equity] and those whose fixed rate mortgage will expire in the next year or so.
“But falling house prices are good news for those who have yet to take their first step onto the housing ladder. Lower prices will bring buying within reach for some. That said, some potential buyers may need to wait for mortgage rates to fall back further. And in the meantime, would-be-buyers may have to endure further rises in their rents as the housing downturn will boost demand for rented properties.
“Overall, falling house prices will add to the present woes caused by high inflation and higher interest rates and the future woes of austerity. At least we can always talk about the weather.”
Source: Property Industry Eye