Property sales are falling through at the fastest rate since Covid
Mortgage rates at highest in 14 years
Greetings to you, reader!
If you’ve been trying to figure out what the mortgage rate hikes and the mini-budget has blessed upon you and me – read ahead.
In this latest edition of the Adjoin Newsletter, we bring to you the state of the (still) turbulent housing market. And how Adjoin can help amidst the turmoil.
Market Updates
- Almost 1 in 3 property sales agreed never happen, data from TwentyCi reveals (while others increase this figure to 40%). This is the highest since the beginning of Covid, when home moves were practically frozen.
- As mortgage rates keep rising, Moneyfacts finds that 40% of mortgage deals now come without an arrangement fee, one of the biggest costs one can incur when buying a home. Last year, the number was 35%.
- What happens when landlords have to battle it out with high mortgage costs and stricter tax rules? Apparently, the cost is transferable, and as a result, it cascades down to tenants .
- Estate agent Hamptons find that one in five renters (vs 12.9% in 2019) has been asked to pay 12 weeks’ rent upfront. Another 6.6% (vs 4.3% in 2019) of tenants have been asked to pay 6 months' worth of rent upfront. In London alone, the number was 28.5%. Another record, you may think – and you’d be correct, says Telegraph.
- Hear this – what Brexit and a pandemic couldn’t do, a mini-budget can. The UK house price has had a majestic run – the Office for National Statistics recorded a house-price increase every month since May 2012. But that might finally change, says Investors’ Chronicles and other experts.
- On a positive note, house sales now happen really fast. Research from HomeOwners Alliance tallies the number of days until sale to 52 - the fastest in seven years!
Knight Frank, a major real estate firm in the UK, forecasts house prices as follows:
- 6% rise by the end of 2022.
- 5% fall in 2023.
- A further 5% in 2024.
Talking about the mini-budget and its repercussions – here’s one more:
- London’s most expensive homes experienced a slash in their asking price. (See image below)
- The capital’s properties for sale spiked by 76% in the last week of September vs the same period last year. (Telegraph)
- Good for buyers, but at the moment, even cheap is expensive in London’s housing market. So make what you want with this data, because we don’t know what to feel about it – yet!
- Higher mortgage costs may accelerate the return of accidental landlords, says Knight Frank.
- Who are accidental landlords? Well, in a nutshell, they are property owners whose situation pushes them to let out their property. Adjoin has a blog post that explains in detail about accidental landlords, their new-found responsibilities, and whatnot.
- However, the persons that Knight Frank refers to, are the ones who decide to let their property instead of selling, due to the cooling market, without it having been planned.
- Here’s another stat that supports this point: Property sales falling through, as said, are at the highest rate since the COVID-19 shut down.
- This an interesting development, as Knight Frank also predicts a 4% rental value growth in the UK next year.
- So, should landlords now rent? Or sell? Perhaps neither: they should adjoin!
- Quilter obtains a worrying statistic for over 40s.
- There has been a rise in the number of borrowers over 40, with mortgage deals of 35 years or more. Quilter estimates that the number will rise to over 3,039 sales in 2022.
- According to Mortgage Solutions, their quality of life may diminish in their retirement years, as they will still be paying off their mortgage at age 75 and beyond.
💡 'Hood in the spotlight: Hackney
Under-utilized land on the De Beauvoir Estate to bear 189 new homes
Under-utilized land on the De Beauvoir Estate to bear 189 new homes, greenlit by the Hackney Council.
- 50% of homes to be affordable
- 59 homes to be social rented
- 36 homes to be under shared ownership
- 6 buildings
- 593 m2 of non-residential floorspace
- New play areas and green spaces
The best part is that all these will be built on 5 plots of land, and requires no demolition of existing structures.
“These plans will not only provide modern, suitable and genuinely affordable homes within the community but are also part of a wider investment to provide improved homes and better community facilities so the whole estate can benefit”, says Guy Nicholson, Hackney’s deputy mayor.
This scheme is the first phase of the redevelopment plan for the De Beauvoir Estate in Hackney.
Interested to know more about this? Go here.
🏠 Ready to adjoin?
Whether you are planning to move out soon or not we are here to provide some worthwhile recommendations (or at least we will strive to do so).
Get in touch and we will answer any questions you may have.
