Published: 13/07/2022 By Tam van WykIt’s July and those thermometers are rising in what is shaping up to be one of the hottest months on record. It’s also the time of year when schools break up and many of us head to the beach. Mind you, people still need somewhere to live and so we, in the property industry, will still be at our desks, hard at work finding them new homes.
And it’s nice that, in a time of political and economic chaos, the property market is one of the few areas of continuity. Rightmove has now reported record highs for house prices for 5 months in a row, although, as we have been saying for some time, those rises are now coming down to more sustainable levels. The reasons the market has been so resilient are that its fundamental drivers remain unchanged - there is a chronic lack of supply of both property for sale and rent (which will continue to be the case until we build more homes), there are record levels of employment (the best in 50 years) and there is still good access to cheap finance (despite the recent rises, mortgage rates are only half their long-term average).
Not all change is bad, though. The Conservatives have always been considered to be pro the housing market and home ownership, in particular. However, in recent years, they have failed to encourage the building of sufficient housing and have made a hash of both tax and legislation in the buy-to-let sector. So, it would be very welcome news indeed if the next Prime Minister takes a more positive attitude to the sector, encouraging investment in both housebuilding and buy-to-let. I won’t be holding my breath, but stranger things have happened. Just ask Boris.
If you’re thinking of putting your property on the market, for sale or rent, why not make the most of the good weather and the favourable market conditions and give us a call.