The new Prime Minister is now in residence and there is still an air of uncertainty as to what lies ahead. In any decisions you make you are no doubt considering all the options, especially when it comes to your home. There are many reasons why people decide to sell: it could be steered by financial reasons or emotional – desire to move closer to family has been extremely popular since the pandemic. Often the urge to move isn’t always planned, it comes upon us all at once, but is now the right time to be selling your home?
The current market
The market has slowed but remains stable at the moment, but experts do warn that house prices could drop next year. This is said to be due to the mini-budget causing financial instability combined with the accelerated interest rate hikes by the Bank of England. This in turn saw the rise in mortgage rates making the idea of buying a home or moving unattractive and, for some, unattainable.
The Council for Licensed Conveyancers has stated that: “the economic outlook for the UK is uncertain,” adding that “the global economy is challenging and the pressures on UK businesses and citizens are well known.” They are predicting a 40% drop in conveyancing transactions year-on-year, which means the number of homes completing is expected to decrease.
This may all be doom and gloom, but as history has shown us, things can change and there are always regional variations. The new mini-budget could bring back stability and see some confidence return in the markets. There is no doubt you will be taking the state of the economy and housing market into account in your decision to move. You may wish to sell now in case prices fall, or wish to wait to see what the new year brings.
One thing we will always recommend is to make sure you are certain you wish to move before you place your home on the market.
You’re financially stretched
There is no doubt that the impact of the cost of living crisis has started to hit, and the ongoing costs of owning your own home could be making you consider whether a move would relieve the strain. You could be considering whether a move could make you mortgage free, or you may wish to take advantage of the equity in your home.
You should always investigate all options before you decide that selling your home is the right decision, and if mortgage payments are starting to pinch please speak to your mortgage provider first to see what support they can offer. Don’t be making rushed decisions now without understanding what support is available, as it may provide you with the reassurance you need for the winter months.
If you are looking to sell for financial reasons, have a talk with your mortgage broker or financial adviser first, to make sure your plans give you the outcome you are expecting.
For practical reasons
There could be a number of practical reasons why now is the right time for a move, for example if there is an issue with space. You could be living in a family home where the nest is now empty and you find yourself living in only a small number of rooms. Although your property holds many memories, it just feels too big and empty now, and the idea of a smaller more manageable home is very attractive.
Or, you could be struggling with the opposite problem in that you have outgrown your space and your family are living on top of each other. Living in a home you have outgrown can bring its own stresses, and therefore the need for more space outweighs how the property market is performing. Having loved ones close, to help and support each other, has become a more popular reason for moving for many, even as the cost of living tightens, families want their relatives close.
Don’t make a snap decision
It is important to make sure you don’t make a snap decision, even if you know the time is right to sell your home, do your research so you know what to expect. At NEXA we are always here to discuss all the options open to you, even if that is to wait.
Should you desire to sell your home be due to the current market, financial reasons or practical ones, we are here are to support your move. Call your local estate agent team today to find out more.