Since the mini-budget took place on the 23 September 2022, there has been much speculation about what is going to happen to property prices. To recap, the Chancellor at the time of the mini-budget, Kwasi Kwarteng announced that there would be a cut to stamp duty for people buying a property in England and Northern Ireland.
The day before the budget, the Bank of England had increased interest rates to 2.25%, the highest percentage increase since 2008!
So, what’s going to happen?
Will We See a Crash in The Market?
Property prices are continuing to rise and in October 2022, property prices increased by 0.9% as shortages of property for sale continue to underpin prices.
Rightmove have said that it is very likely that asking prices will drop in November and December as they normally do, and it will be important to distinguish these seasonal price changes from market changes caused by other factors.
Are People Still Selling Their Property?
With mortgage and interest rates rising, you may wonder if now is the best time to sell? Some movers have put their plans on pause given the press speculation with first-time buyers being most nervous over interest rate increases, however, a large number of sales are still going ahead to those with cash or bigger deposits as well as those with a lower fixed rate mortgage offers who hurry to complete their sale before the offer expires.
New sales are being driven by those needing to move for reasons outside of the current property price debate and we expect local markets to continue to see specific demand whatever the outlook in the wider economy.
If you’re considering a move now or in the future, search for your perfect property or contact or visit your local branch to register your search requirements with our team.
