Back in 2020, at the start of the coronavirus pandemic, the property market was frozen. Since reopening, it has been busy, with Which? reporting that 1.3 million homebuyers benefited from the government’s Stamp Duty holiday.
Zoopla, meanwhile, confirmed that 2021 was the busiest year for the property sector since 2007.
This increased demand has led to an increase in house prices over the last two years. But could the tide be turning?
With many experts predicting the arrival of a buyer’s market during the second half of 2022, you might find that you have the upper hand in negotiations.
Here are five simple ways to capitalise, whether you’re moving house or looking to get onto the property ladder for the first time.
1. Get organised
Organisation is key when you’re buying a house, whatever the state of the wider market.
Make sure you are clear on your budget and be sure to speak to the professionals for advice if you need it. Get an agreement in principle from your mortgage provider and the sellers you approach will know that you’re good to go and a safer bet.
If you are selling your current house, be sure it is ready to sell and on the market. A buyer whose home is sold subject to contract is likely to be much more appealing to a seller than someone who has yet to secure their own buyer.
2. Research the market
Before making an offer on a property, be sure to thoroughly research the local market. Not only will it give you an idea of average house prices in the area, but you could potentially uncover the reason why the existing owner is looking to sell.
When you look around a house, always ask the estate agent how long the seller has had the property and why they are moving. Also, ask how long the house has been on the market.
Diligent research means that when the time comes to make an offer on your dream home, you can be sure that your offer is sensible and so more likely to be taken seriously.
A well-researched offer also puts you in the best possible position to negotiate.
3. Be prepared to negotiate
The Guardian recently confirmed that while the average UK house price has topped £250,000 for the first time, signs of a market slowdown are emerging.
The time taken to sell a property, and the proportion of sellers reducing their asking price, are both on the rise. These factors make now a great time to negotiate so be prepared to haggle.
Don’t be afraid to go in with an offer that is below the asking price (as long as it is sensible and well researched!).
Remember that sellers will also have read the news of a slowing market and could be keen to shift their property before it slows even further.
4. Consider an auction
Back in May 2021, the Telegraph reported a sharp increase in the number of homes being sold at auction.
While the rise came mainly from buyers looking to avoid a frenzied housing market caused by the Stamp Duty holiday and rising demand – not to mention shifts in buyers’ needs post-lockdown – the trend is expected to continue.
Auctions can be particularly beneficial for cash buyers, with sellers particularly keen to move properties quickly.
The need for due diligence and meticulous research is even more key here so be sure to speak to our team of dedicated mortgage consultants at the start of your homebuying journey.
5. Speak to us
Our mortgage consultants can help you understand the type of mortgage you need and then use their access to lenders across the market to find exactly the right one for you.
We can also help you to organise financial protection like life insurance and income protection to ensure that you and your family can remain in your dream home whatever the future brings.
With our help, you’ll be able to make a fully informed decision, whether you’re a first-time buyer, moving house, or looking to add to your investment portfolio.
The market is constantly changing but our experts can guide you through the process and find the right deal for you.
Get in touch
If you are considering purchasing a house and would like mortgage advice, or you have any questions about your long-term financial plans, please contact us. Email info@lloydosullivan.co.uk or call 020 8941 9779 to see how we can help you.
Please note
Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it.
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