Strategies for buyers: How motivated purchasers can capiatlise as market adjusts
- 25th October 2023
- Buying Property News
The check on house prices is predominantly thanks to the pressure of rising mortgage rates which have nearly trebled since 2021 combined with the pressures of the cost of living. At the same time wages have been increasing the same or close to rate of inflation, explaining why the Office of National Statistics (ONS) shows that London house prices fell just 1.4% in the 12 months to August, as rising incomes meant a higher multiple of earnings to cover Mortgage availability and affordability.
With supply exceeding demand, it’s essentially now a buyers’ market. But making the most of the opportunity in the housing market as a buyer means having the right strategies.
Establishing relationships with agents
Agents like us are your new best friends in the house-buying process, so it’s important to build trusted relationships with them. They will be the first to hear about new properties coming on the market and will know the local market well so, if it’s an area that’s new to you, will also be an invaluable source of advice. Let them know you are prepared to buy so that they can line you up with sellers who are as eager as you to do a deal.
Find eager sellers
With buyers being more cautionary, it can often take longer to sell as a result. Finding those who are eager to sell – perhaps because they’ve found their own dream property or want to take advantage of the market opportunity themselves – means you could stand a better chance of paying the price that you are comfortable with.
Have your finances in place ready to buy
Although competition for property may be lower than normal, the right property could still drive intense interest amongst other buyers. Whist Mortgage rates are uncertain a positive is rising wages, which saw an annual growth rate of 7.8% between May and July 2023. This figure was the same as the previous three-month period and the highest annual growth rate since records began in 2001 - As wages rise so then do Mortgage multiples and purchasing power. The expectation is that in the longer term, mortgage rates will eventually begin to fall and when they do, buyers will return in greater volumes.
In the meantime, mortgage rates will continue to be influenced by inflation – with the CPIH annual rate remaining at 6.3% for September – and interest rates which have been held at 5.25% for both September and October. The fact that inflation hasn’t fallen could mean that interest rates are held static once again in November to compensate. Such uncertainties in the market mean that it makes sense to get all your finances in place so you are ready to move ahead quickly with a deal when you do find a property you love. If you are a cash buyer, however, you are in a particularly advantageous position, unhampered by the increased mortgage rates and welcomed by eager sellers.
Have trusted contacts on hand
Once you’ve found your property, you’ll need to act quickly to appoint a solicitor to work for you, as well as a surveyor to carry out a survey of the house you want to buy. If you haven’t yet established contact or have yet to establish such relationships, then ask around for recommendations or ask us, your agent, for advice. Having these experts on hand will ensure your paperwork gets handled swiftly and without any delays.
At ludlowthompson we are proud of the trusted relationships we have built with our clients during 30 years in business. We are ready to help you find your dream property so do get in touch with an expert at your local branch today to find out more about how we can help. We offer a range of services and promise to deliver maximum performance, communication and trust for the London market.
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