Buyers in driving seat as green shoots mark the arrival of Spring market

Sellers will have to show greater realism on price to get their sale across the line according to Kris McLean, managing director of The Guild of Property Professionals.

McLean (pictured) says buyers are currently in the driving seat and despite the brake on house-price growth, the market, as well as economic outlook, is showing tentative green shoots as we head towards spring.

With mortgage rates falling and longer-term deals sitting around the 4% mark McKlean says: “Typical costs of a two-year deal and five-year fixed-rate mortgage have fallen back to where they were in October 2022, despite the Bank of England Bank Rate rising by 1.75% during this period.

“There has also been a rise in the number of mortgage products, with over 4,000 different products now available. According to Zoopla, the number of days a product is available before it is withdrawn has also increased.

“It is now at 28 days, which is up from just 15 days in January, the highest level since March 2022.”

The housing market and economy are closely interlinked and despite the rising cost of living the rate of inflation has slowed and is expected to fall back over the course of the year.

Recession

Employment levels also remain strong, the Guild forecasts are improving and any recession is expected to be less severe than first predicted.

He adds: “Looking at property prices, after two years of unsustainable rises, an expected price moderation in 2023 is not a surprise.

“Price growth in the rental sector is expected to continue in 2023. However, there are tentative indications that competition between renters, which has underpinned the record rental rises, is beginning to relent.

“Over past two years the property sector experienced a wave of activity, however the market is now stabilising and pausing for breath as stock levels and time taken to secure a sale are gradually returning to pre-pandemic levels.

“With buyers currently in the driving seat, sellers will have to show greater realism on price to get their sale across the line.”