Should you sell or should you buy in this most interesting property market?
Thousands of house sellers have rented a home to break their house chain in the last 12 months, although at a cost as they face paying many thousands of pounds in rent.
There are a number of reasons behind this. One is because they cannot find another property to buy amidst a continuing shortage of new properties coming to the market. Although, there are others who have achieved such a high price for their home they have decided to cash in and are (hopefully for them) waiting for the property market drop?
Or will it drop? (More on that later).
The average cost of a six-month rental agreement is circa £5,000, meaning accidental tenants have pumped many thousands into the rental market in the last 12 months.
The unevenness between the number of properties for sale and demand for them is at its widest since the early 2000’s. Whilst we have seen a slight improvement in the number of properties for sale, there are still 52% fewer homes up for sale today, compared to August last year.
This serious shortage of property for sale is discouraging some hesitant homeowners from putting their property onto the housing market, anxious they will not be able to find their next home and will be left renting.
Yet some savvy homeowners are moving into a rented property as a way to navigate the shortage of properties to buy. If you have someone offering you top dollar for your home, whilst you will have the hassle of two moves, the increase in value of your home will more than offset the rent.
Also, when you come to buy your next home, you will be chain-free and in pole position to buy your ‘forever home’, rather than being overlooked for the home because you are sold stc and burdened with a chain.
Yet this trend has made life tougher for long-term tenants.
To give you an idea of how this has affected the rental market, with heightened demand and lower supply, demand for rental properties has grown to such an extent…
Tenants are suffering from less choice and higher rents in the property rental market, with few indications it’s going to significantly ease on the run up to Christmas.
So, what is going to happen to the property market?