Is now the right time to sell a house?
The timing of selling your home is always a major decision to make. Historically, spring to early summer has always been considered the best time to put a house on the market.
Unfortunately, the seasons are not the only factors to consider in the current economic crisis with rising interest rates and the cost of living crisis. With interest rates increasing during these tumultuous economic times, it leaves many considering whether it is better to wait for interest rates to peak and hopefully fall sometime in the future, or sell now before they rise further and the squeeze tightens.
Rising mortgage rates
Mortgage rates have been rising ever since the Bank of England began a series of seven consecutive rises. Recently, they had to increase the base rate by 0.75% to 3% in an ongoing attempt to curb rising inflation levels which stand at a staggering 10.1%. This is five times the Bank of England’s target of 2% and the largest increase in the base rate since 1989.
For those on an interest-rate mortgage that tracks the base rate, monthly payments will go up, which could mean prospective buyers may decide to retreat from the housing market. With this knowledge, many people may decide not to sell their homes at the moment and possibly wait until the economy recovers from the current crisis. But there is no telling when this may be.
Cost of living and higher bills
Equally, the cost of living crisis will also impact the decision of whether to sell now or not. Everyone in the UK faces a period of uncertainty with increasing bills for everyday items in the supermarket and on the high street.
This will certainly hit households’ ability to move home, especially as the price of gas and electricity has increased substantially this winter. For example, a typical household energy bill will rise from £1971 to £2500, which is double what it was last winter.
Added to this, the government has decided to limit energy costs until April 2023 after reversing a decision to cap energy bills for two years at an average cost of £2500. All households will also get a one-off £400 cut in their utility bills to try and ease some of the financial discomforts.
There are also some savings to be made according to the Energy Savings Trust if households are able to insulate their homes they could save up to an average of £555 on annual fuel bills.
As such, it may be that buyers want to wait until the potentially hard winter months are over and there is more stability in interest rates before looking to move house.
How can GloverPriest help?
If you are looking to sell your home, we are here to help. GloverPriest is accredited by the Law Society's Conveyancing Quality Scheme (CQS) which means that we provide expert and reliable conveyancing services.
If you need to instruct a conveyancing solicitor, please do not hesitate to contact us today to see how we can help you. Complete our enquiry form.