July Tilehurst & West Reading property market update
Hello and welcome to July’s property market update for the Tilehurst and West Reading area.
We will be looking at three key topics:
· House prices – are they still increasing or are we starting to see a decline in value?
· A BIG change in the mortgage market is happening next month, find out what…
· Most in demand properties we have buyers currently looking for
House Prices
Are house prices still increasing? The short answer is yes, just not as rapidly as we have recently seen.House prices rose by 0.3% in June, which is the lowest monthly rise since September last year. This took the annual house price growth to 10.7 %, according to Nationwide.
Demand is still there if properties are priced correctly, however we have seen more and more properties sitting on the market due to being priced incorrectly. Buyers have become acutely aware of the rises over the past two years, and it feels like we are nearing the top of the curve when it comes to pricing.
What’s new in the Mortgage World?
The Bank of England decided it will change its mortgage affordability tests from next month, giving more flexibility to lenders and borrowers. Commonly referred to as a ‘stress test’, currently when lenders review prospective borrowers mortgage application, they look at the clients affordability based on a ‘higher rate’, to make sure any future hikes in the rates would still be affordable. With this removed, borrowers will now be assessed on the rate that relates to the application. This is a fairer way to review an application and will lead to more flexibility and borrowing power.
Mortgage rates are rising though, so make sure you keep in constant contact with your broker if you are looking to buy or re-mortgage in the next few months.
What’s in Demand?
All properties are in demand, but what has really stood out for us is the public’s appetite to buy larger family homes. Buyers are actively looking to move as they want more space, maybe a home office for example, whilst also focusing on great school catchments locally. It’s been well documented in the media that property sales are taking longer now, and we have seen many families wanting to move to the ‘right’ school catchment far earlier than we have seen in years gone by.
If you have any questions or need some property advice, feel free to to contact with us via WhatsApp, phone or email.