Down valuations set to hit sales in the coming months
As the housing market in the UK slows down to a halt, due to the combination of rising interest rates and the rocketing energy costs, buyers will find that the property they are intending to buy could be down-valued, when the lender sends a surveyor, in part, because they tend to always be over-cautious, but also because the price of the property they wish to buy, may actually be dropping in value from the time that they have agreed the sale, or perhaps, prices have already fallen and the price agreed is too high.
Either way, the next few months will be stormy to say the least, what happens beyond that is anyone’s guess at this time, as things could be bed, worse or catastrophic, only time will tell.
“Although the cost-of-living crisis is set to slow the market further, we might also see a slew of properties come to market in the autumn as sellers look to take advantage before prices drop too far. At the same time, as interest rates go up, homeowners may be at increasing risk of overextending themselves financially having purchased a larger home since the pandemic, adding more potential sellers to the market.
“As more supply should balance out house prices, this may not translate to fewer transactions, as greater choice allows for more potential buyers to enter the market. It is entirely possible that we see an extended period of strong transactional activity despite economic headwinds.
In the meantime, buyers need to be very cautious about the price they agree and keep in mind that for the main part, in many parts of the country, prices are no longer rising, on the contrary, many sales are already being agreed below the asking price.
Before you enter in to an agreement and incur costs, ensure that you are certain that the price you are paying, is not just based upon whatever you have been told, ensure that you have hard evidence to support your offer, before you make it.