New data from Zoopla shows that 42 per cent of sellers are accepting offers over five per cent below the asking price – the highest number in five years.
Meanwhile 15 per cent are accepting offers 10 per cent lower than asking.
The portal says there are 14 per cent fewer buyers than a year earlier and 18 per cent more properties coming to the market than the five-year average.
House prices are up 1.2 per cent in a year, but annual house prices are set to turn negative in the second half of the year – with a five per cent fall by the end of 2023.
In response to the Zoopla figures business analyst Sarah Coles - head of personal finance at Hargreaves Lansdown- says: “We could be piling properties high and selling them cheap in the second half of the year, as mortgage misery throws houses into the bargain bucket.
“A huge number of today’s buyers will have locked in a mortgage before rates started to rise through the roof. As a result, sales held up at eight per cent above the five-year average.
“However, demand is already down 14 per cent in a year, and as the impact of mortgage rate hikes feeds though into sales, we can expect this to intensify. A rise from four to six per cent cuts buying power by 20 per cent which is going to take a toll.
“It's also worth keeping a close eye on the number of properties being put up for sale.
“Supply is starting to grow faster, and 18 per cent more homes hit the market in the previous four weeks than the five-year average.
“As borrowers face the horror of remortgaging at a much higher rate, they’re weighing up their options. The government is hoping to stem a flood of forced sales by making it easier for people to make short-term mortgage changes in order to bring monthly costs down. It remains to be seen whether this is enough, or whether higher rates for longer are enough to persuade people they need to downsize.”
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Opportunity 😆, you’re having a laugh, with the current government and the new to come Labour idiots hating us all !! Sell now before prices drop further.
🆘🆘🆘
If I was either buying a family home or a BTL I would be waiting to see what happens later this year or even early next year.
There is still demand so prices will not fall that much but I can see people keeping their powder dry for the obvious big giveaway leading up to the election.
What did you think would happen with full scale attack from all angles on PRS.
Licensing Schemes, Mandatory, Additional and now Borough wide Selective licensing in some parts, Removing Section 21, Introducing Section 24, De-Regulation Act, Criminalisation Bill, Deposit Rubbish, Renter’s Reform Bill nonsense, Regulatory requirements, Confiscation Orders, Re-payment Orders 3 or 4 times what’s owed, Redress Schemes, Accreditation’s Schemes, Removal of Personal Allowance over £100k, Paying 60% over that to £125k, New rate over that increase from 40% to 45%,
Tribunal’s one sided, Ombudsman coming what for another piggy in the middle.
Permanent sitting Tenants being installed as per pre 1988 Act but they can walk at anytime with minimum notice, Interest rates through the roof.
Can you think of anything more to help us ?.
Never mind the War.
Where’s the other little man with his Rent Cap, he’d know.
Summed everything up perfectly Michael!
I think you can add eviction bans at the whims of politicians.
They have no stake in these properties but act like they own them. They don’t pick up the tab for all the non-payers they protect either.
Increasing CGT has been mentioned too.
Would be better for us if prices were rising as we are mainly selling now!!
Opportunity!!!? Ha ha... I wouldn't buy another one even if it was half price. Why would I subject myself to more of this crap? No, I'm selling up!
They'd have to put a gun to my head , i'd say just pull the damn trigger :)
Even more demand for rental property coming up!
Yep, as a lot of us sell sell sell then those left in the pond will have a field day 🤠
Not an opportunity but an increased nightmare for most landlords. The tenants damage or create dampness and mould due to not opening the windows, no heating (high fuel cost is not LL responsibility), wet shoes and clothes from outside, left in the room, in fact heap of clothes on the floors, whereas the near enough empty wardrobes. Then they call the rogue landlords. This behaviour will increase and the court will shame the landlord by calling them rogue. The 3rd party inventory should count and the fact that for 18 years owning the property has not caused such damage. But the court will always take tenants' favour. More properties, more of these issues. No more properties, best to sell or stay with what one has.
John Chart weighs in
MF mentioned pre-1988. I well recall the days of houses and flats with old-style Rent Acts regulated tenants (paying a pittance) being auctioned. The LLs of these properties had to beg the all powerful Rent Officer to sanction rent increases - usually by about 3% every 2 years. Some well-off tenants sat there for years - what a bargain for them. These investments sold at auction for typically one-third VP - I know - I bought some of these - brilliant investments. But pity the auction sellers (unless they were dealers).
Looks like we're heading the same way!
Just catching up after a day of laying 600 x 600 x 50mm paving slabs, I see it as therapeutic rather than work, after all the nonsense they have bestowed on us, that will tell you I much I despise what they are doing to us. Work is a pleasure by comparison.
So just did a finger in the air calculation
I looked at at a couple of properties locally in east anglia - the sort of thing I might have considered buying 5 years ago - even though they have reduced their asking prices once I have factored in cost and tax due to S24 plus stamp duty and running/refurb expenses it wld bring in about 3% return max. That is with me doing all refurb and self managing. Add to that risk re S21 and other legislative changes plus inflation and ability to get 5% in savings accounts/bonds its not worth it. I appreciate there will be capital gain as with all property in long run but with many Landlords in the 50 to 60 plus age bracket that will be less of a priority and that gain will be hamstrung by cgt changes so for all the Landlords selling up there will be precious few stepping up to take their places.
I wonder how many of the sellers are landlords dumping their unprofitable houses that will also never make an EPC C and mortgage payments are making it no longer financially viable to own the property.
I've saved up enough to buy another 1 or 2 houses (without a mortgage), but in today's market it's going to be put in a high interest account with a bank for 12 months to earn 5%+ until I can see where the housing market is heading.
Locally prices are on the way down, so many listings reduced. The government is hell bent on destroying the PRS in so many ways. I'm not confident enough to buy any more houses this year, so my money can sit in an offshore bank earning good interest.
I have 1 low EPC rated property that will never make a C that I would like to sell once the tenant moves out.
They have always paid their rent on time and have been good tenants.
Months ago, I've asked them to find somewhere else to live and asked my local estate agent and another landlord to try to help them find another house, but to avail.
I'd prefer to sell before prices drop too much. I think that once the EPC date and new regulations are released, there is going to be a flood of houses on the market and a possible house price crash as landlords off load low EPC houses.
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