Mid May Market Update: How 100% Mortgages are Changing the Game
Welcome, homeowners, landlords, property investors, tenants, and buyers! Are you curious about the current state of the property market in May? There's a lot to cover...
Welcome, homeowners, landlords, property investors, tenants, and buyers! Are you curious about the current state of the property market in May? There's a lot to cover, from the intriguing sale of Purplebricks to the emergence of 100% mortgages for tenants. In this informative blog, we'll delve into the standout key points and shed light on the latest market trends. So, let's dive in and explore what's been happening in the dynamic world of real estate.
The Rise of 100% Mortgages
This month, Skipton Building Society introduced a groundbreaking mortgage product aimed at individuals trapped in the tenant renting cycle. The concept is simple yet powerful: if you've been consistently paying £1,500 in rent for 12 months out of the last 18, you may qualify for this unique mortgage opportunity. The idea behind it is to challenge the notion that if you can afford high rental payments, you could potentially afford mortgage payments of the same amount. While it may evoke memories of the 2008 crisis, it's crucial to note that the criteria for this mortgage are quite stringent and require further exploration. Nevertheless, it presents an exciting opportunity for tenants with strong credit ratings and secure jobs who lack the necessary savings for a deposit.
Purplebricks and the Rise of Strike
Recent headlines have revealed that Purplebricks, a prominent player in the online estate agency market, has been sold to Strike for a mere £1. However, it's important to clarify that Strike has not purchased the brand itself but rather its assets and data. Strike, known for its zero-fee business model, has made a bold move by acquiring a company that is currently operating at a significant loss. Time will tell if this unconventional deal proves successful or if potential challenges arise. As a seller, it's vital to consider the implications of choosing the cheapest agent for such a significant transaction, as there's often more at stake than just the cost.
Supply and Demand Dynamics
Taking a closer look at the data, we find an interesting trend in the property market. Currently, three properties are being sold for every two that enter the market. This begs the question: are we experiencing a buoyant booming market, a plateau, or a case of inadequate supply? It's an intriguing phenomenon that highlights the delicate balance between buyers and sellers. While this trend suggests a potential shortage of available properties, it also presents an opportunity for sellers who want to stand out in a competitive market. To navigate these dynamics successfully, it's crucial to work with trusted and experienced agents who can guide you through the process and help achieve your goals.
The Importance of Choosing the Right Estate Agent
When it comes to selling your most valuable asset and realizing your dreams of moving to a new home, selecting the right estate agent is of paramount importance. Opting for the cheapest option may not necessarily be the wisest decision. Just as you wouldn't choose the cheapest heart surgeon or optician for important matters concerning your health, you should approach the selection of an agent with equal seriousness. The difference between estate agents can be vast, and it's essential to work with professionals who have a proven track record, local expertise, and a genuine commitment to your community. Consider partnering with an established agency that prioritizes your needs and can ensure a smooth and successful property transaction.
Conclusion
The property market in May has brought forth some exciting developments. From the introduction of 100% mortgages for tenants to the intriguing sale of Purplebricks to Strike, there's much to ponder. The delicate balance between supply and demand further adds to the complexity of the market. By staying informed and partnering with the right estate agent, you can navigate these trends.
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