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Amid the gloom, the future is bright for the housing market

Vic Tevari, a veteran in the property business for over 30 years, gives his view of property prices and the effect the last few difficult months may have.

Vic Tevari, Associate Director, Malixons

Vic Tevari

Vic Tevari, Malixons

There is a lot of speculation with regards to house prices over the last six years and certainly more recently, as we have had quite a few changes to the market in that time. We have had two Elections, the mortgage market review in 2014, the Brexit referendum and stamp duty increases on second purchases in 2016 – and more recently COVID-19 bringing tragedy to many families and homes.

It is my opinion that house prices have not fallen over the last six years as many people believe, but that the rate of increase simply slowed down. The proof is quite visible as if you were to pick any property in any street look at its current value and check with land registry as to similar properties sales six years ago, you would find that it is clearly worth more in today’s market.

It was quite clear that since Brexit was pretty much resolved at the tail-end of 2019 and with the election also out the way in December, many of us felt that the 2020 property market would certainly take off. As we entered January the market started to move quite rapidly with many new buyers registering, as we got into February and March COVID-19 had hit, once again the market was capped as we went into lockdown.

Throughout the lockdown there were many enquiries and registration of buyers across all property websites on a daily basis. As the estate agency business was eased back into opening on the 13th May, viewings and pent-up demand is now a real driving force. Logic would dictate that many buyers are looking to buy currently as it makes sense to buy in a level market as opposed to buoyant rising market.

I don’t believe that prices and the market will fall… the pandemic has created many more reasons for people to be moving such as job losses, working from home, wanting to live closer to family etc.”

I don’t believe that prices and the market will fall, as sadly there are many reasons why people’s lives have changed throughout this pandemic. It has created many more reasons for people to be moving such as job losses, working from home, wanting to live closer to family etc.

It is quite apparent that lenders are being extremely cautious with lending, however with the government pressing to kickstart the economy, lenders will quite clearly have to encourage borrowers, as this is their way making money. You cannot have a supermarket wanting to make money and not sell any of its stock.

With the low interest rates set to continue buyers need not worry on that front, even if you bought now and the market dipped and the property dropped, it does not cost you anymore and you don’t lose anything – unless you were going to sell immediately, which is highly unlikely.

Most first-time buyers move, after their first purchase, between five to seven years and with history showing that property prices have doubled or tripled every 10 years, buying a home is always a wise investment as well as owning your own home.

 

 

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