If you watch the news, read the newspapers or generally take in any sort of main stream media – you will most likely believe that the UK property market is teetering on the edge of a post-apocalyptic implosion
There’s a good reason for this – BAD news sells! It gets way more attention than positive news. Therefore, you will see lots more negativity out there, its what gets attention, its what sells. I really wish it was not this way, but it is. Sadly basic human nature gives more focus and attention to negatives. This probably stems back to primitive cave people needing to stay safe from danger. I’m not an anthropologist so il leave me thoughts on the subject there
When I agreed to buy my first house in 2012, at the age of 30, I decided that it was time I became a proper grown up and started watching the news. I sat down one evening, put the TV on, excited in anticipation of the new life I was about to enter. One where I was a responsible homeowner, educated in what’s going on in the world, informed by my daily dose of news (just like a proper grown up)
As soon as it started, the news reader went into a depressing monologue about how mortgage rates were going up and house prices were going down. I had just agreed to buy my first house, I would be committing to six figures of debt through a mortgage. Was it too late? Should I pull out now? Surely with this new information, it was not a good time to buy? I mean who in their right mind would commit to so much debt in such an environment?
Fortunately, I managed to step back from the situation, instead I looked with a longer-term perspective, what did I feel would happen to property values over the next 10 years? Where would I have been if had purchased a property 10 years earlier in 2002? (Yeah, that was a bitter pill to swallow)
So instead of listening to the news reader, I decided to turn the news off – I have not turned it back on since. I feel I am in a much happier place by not subjecting myself to such negativity on a regular basis
Of course, you still need to stay informed. Today I seek out facts, I have several trusted mentors around me who are far more experienced and wiser than I am. They have experienced multiple recessions. They have seen different governments come and go. By taking information from a variety of trusted sources I can make my own conclusions. Yeah, sure I don’t get it 100% correct every time, but I’m always learning and becoming wiser for it
I don’t generally listen to the mainstream media on what’s happening in the property market – they have been saying a HUGE crash is coming since 2019 – just imagine if you had purchased in 2019???
I prefer to look at facts of what’s going on. Rightmove is a reliable source, in my opinion, many properties are sold through this platform. They have just released the national and regional market trends for January – this is based on actual figures (rather than a media company grasping for your attention)
In the Southwest we have experienced a drop of 0.4% – with the average house asking price at £371,485. However, we are up 3.4% on last year (hardly sounds like the apocalypse has landed in my opinion?)
Nationally we are up 0.9% – to an average of £362,438
Tim Bannister (great name, but no relation)
Rightmove’s Director of Property Science
“At the beginning of the year, buyer demand is up by 4% compared with the same period in the last “normal” pre-pandemic market of 2019. The bounce-back in activity this January was bigger than usual this year, following an extended year-end lull. The number of prospective buyers sending an enquiry to an estate agent about a property for sale jumped by 55% in the last two weeks, compared with the previous two weeks, an indicator of pent-up demand. In recent years, this New Year jump in enquiries has been around 45%, and it was last higher than this in 2016, a potentially positive sign for the year ahead.”
Here’s a link so you can start doing your own research;
My personal prediction has not changed since the summer of 2022 – here’s a video I made on 3rd July 2022 LINK HERE
I believe there will be a cooling off with the market, house prices will level out. Many of the overpriced properties will go unsold and prices will drop. Desirable properties will still sell reasonably quickly (we are currently experiencing this). Overall prices will drop a bit. I don’t expect them to go down more than 10% though – this is just my opinion, I don’t have a crystal ball, if I did, this would be a very different blog!
By educating yourself you can start to make informed decisions, by building up your knowledge, over time, you will start to recognise good and bad buys. Just remember Rome was not built in a day
For those of you who are keen to start their journey, I have created a Free mini course, it’s packed full of useful info
By the end of the course, you will be able to;
- Get yourself in the perfect position to invest in your first property
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- Maximise the end sale price of your first investment property so you don’t leave any money on the table
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As always, if you have any thoughts or questions on this or anything else property related, I would love to hear from you?
Cheers George B