Instant Valuation

  • UK interest rates were raised for the fourth time since December (on 5th May 2022), by a quarter of a percentage point to 1%. This is the fastest increase in borrowing costs in 25 years.
  • Inflation is running at 7%, which is more than three times its target and is still rising. This is due to the post pandemic-surge in consumer demand and has been exacerbated by the Russian invasion of Ukraine.
  • The consensus among a poll of economists by Reuters is that the base rate will rise to 1.5% by early 2023, but will remain there for the rest of that year. This remains low by historic standards.
  • Many borrowers will be cushioned from any immediate impact by fixed-rate deals. The proportion of advances on such deals has risen each quarter since the market reopened in June 2020 (94.5% Q4 2021, FCA).
  • Source: Dataloft, Bank of England

  • The number of homes listed for sale is still 9% lower than this time last year according to latest research*. Low stock levels, combined with relatively high demand, create log-jams for would-be home movers.
  • Despite healthy levels of demand across most of the country, the average time to sell a home rose from 90 days to 115 during 2021, according to Zoopla. The slowdown is generally attributed to difficulty in completing chains.
  • Moving into rented accommodation is a tried and tested way for vendors to break the chain and improve their prospects of becoming the preferred buyer. However, the number of homes available to rent is down by 25% on last year.
  • When maximising speed is a higher priority than maximising price, some vendors have been turning to ibuyers and auction houses to unlock the process, although the majority still choose to patiently sit it out.
  • Source: Dataloft, *TwentyCi

  • The ongoing energy crisis has not only sparked concerns about the energy efficiency of our homes, it has also made us consider the type of vehicle we drive.
  • A recent survey by the Home Builders Federation (HBF) has revealed that 71% of respondents said they would be more likely to buy an electric car if their house came with an Electric Vehicle Charge Point (EVCP).
  • The government is set to legislate that all new homes and buildings with an allocated parking space will be required to have an EVCP.
  • Nearly 94,000 (22.5%) of vehicles registered to date in 2022 have been Battery Electric or Plug-in Hybrid Vehicles, up from just 13.8% a year ago (Society of Motor Manufacturers and Traders, based on Jan–March).
  • Source: Dataloft, Home Builders Federation, Society of Motor Manufacturers and Traders

  • Almost three-quarters of people are worried about the energy efficiency of their homes given the ongoing energy crisis, according to a recent survey by the Home Builders Federation (HBF).
  • The highest levels of concern are among females (81%), those aged 35-44 (86%) and those living in the social rented (82%) and private rented sectors (80%).
  • 1 in 4 of those who are worried about their homes being energy efficient say that when they buy their next property, its energy efficiency will be crucial.
  • The most important sustainable home features considered to be: insulation (51%), double/triple glazed windows (50%), energy efficient appliances (39%) and a heat pump/ modern condensing boiler (21%).
  • Source: Dataloft, Home Builders Federation

  • For a buyer with a 25% deposit, the monthly mortgage payment in all areas remains lower than the equivalent monthly rent for a 2-bed flat (2-year fixed rate mortgage, over 25 years).
  • However, for those with a 10% deposit (90% LtV), increased mortgage rates in March mean that in London, the monthly rent would be 9% less than mortgage payments, and there is virtually no difference in the South West, South East and East.
  • For first-time buyers, getting together a deposit is still the most significant barrier to home ownership. Maintenance costs and giving up flexibility are other considerations.
  • As interest rates continue to rise, the monthly cost gap is likely to narrow further in all regions and this may see more 'would-be' first-time buyers evaluating their housing options.
  • Source: Dataloft, Land Registry, DRMA, Bank of England
The Property Ombudsman Deposit Protection Scheme Rightmove Zoopla Primelocation OnTheMarket