Why the price of a house doesn’t even matter for a buyer

Why the price of a house doesn’t even matter for a buyer

Bit a crazy statement I know and sorry if you are someone not on the property ladder thinking this guy is an idiot; but bare with me…

I have worked in the property market for over 18 years now and the actual price of a property doesn’t actually have the main impact for people when searching for their next home.

Why?

Because the first financial impacting factor for a purchaser is the monthly cost and not actually the property price. The monthly affordability then impacts the price of the property you can then purchase. 

So if prices increase by 3% (as an example) on a house at 300k then the price would be 309k. That doesn’t mean a new buyer needs to find an extra 9,000 from their savings, it means they would need an extra £900 or £1,350 based on a 90% or 85% loan to value mortgage.

The true impacting factor for affordability is the rate of interest charged through the mortgage. Example being 2.5% interest rate vs a 2% interest rate being more impacting on the monthly payments that the price change.

So…

Interest rates are dropping, and have done since the start of 2021. Banks are searching for what they call ‘market share’, they are keen for business and they are reducing rates to entice new potential buyers. This knock on effect has meant an huge uplift of people searching for a new or first home.

Price vs Affordability?

There is always only one winner… If you have a plan to move house we would love to help advise you on the best way to make your property dreams happen.

Click here to get in contact.

Managing Partner


Get in touch with us

If you walk down almost any Yateley road or street, you will see the quiet signs of life playing out behind the front doors. Families growing. Kids leaving home. Kitchens are being refitted for the second or third time. Yet somewhere in that rhythm, every homeowner starts to feel it again ... the gentle itch to move.

This guide from Avocado Property breaks down how these proposed changes could affect buyers, sellers, landlords, and tenants in these two commuter hotspots. From leafy avenues to bustling high streets, both areas feature a broad property range, but with most homes well above the £500k threshold, these Budget proposals are particularly relevant here

Serious buyers are always looking. But they can only view what’s available.

Yet never did. Here is why. If you have ever thought about selling your Stevenage home, you will know how tempting it can be to stretch the asking price. After all, it is your biggest tax-free asset, and those extra few thousand pounds can feel like a sensible cushion. Yet in the Stevenage property market, ambition can sometimes cost more than it