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  • Neil Harrison

A Housing Market update 'Extend Now - Move Later' .... very much a good idea!

Updated: Jun 3, 2023

A further boost right now as March looms for our recently launched 'Extend Now - Move Later' initiative as a rocketing start gets underway for 2022 home prices - news now out is that Britain’s housing market has made its strongest start to a year since 2005,

Highlighted online came was key news that annual house prices growth rose to 11.2%, according to the UK’s biggest building society, The Nationwide.

highest level

Says Nationwide - The average price of a home hit £255,556 in January. This is the the sixth consecutive monthly increase apparently. They further report that the annual growth rate accelerated 0.8 percentage points from 10.4% the previous month, reaching its highest level since June.

looming higher prices

We, at Mint - in the face of these looming higher prices - remain very much committed to our ‘Extend Now’ initiative,as highlighted here on this blog a while back. For sure, it looks more and more, it seems, very much in step with the looming difficult financial scenario facing homeowners as we roll on into 2022.

cost of living

Looking on through the Spring - there is not just these sure to continue rising home prices to take on board.....there is also a much talked of rise in the cost of living….National Insurance rises too are looming ….and goodness knows what else may emerge financially as 2022 ticks on!

financial pressures

We say …....the time is not ideal right now to move home in the face of these financial pressures. If an improved living environment and more space is needed at your home right now, what would seem the safer approach to consider - going forward - is to improve and/or extend your current home for now - so that the added value of the improvements you make can be cashed in on when price pressures are less daunting in late Autumn this year or more ideally on into 2023.

slowing in 2022

A cooling of the Housing market will, experts suggest, be occurring later this year. The property market is likely to slow in 2022, according to latest data from Nationwide. Thus you can pay less later on for your choice of new home AND realise a better price for your current home because of the improvements you have made to it … a win…win …one might say - worth a thought surely?

robust

Reported online were the words of Robert Gardner, Nationwide’s Chief economist, who said: “Housing demand has remained robust up to now. Mortgage approvals for house purchases have continued to run slightly above pre-pandemic levels despite the surge in activity in 2021 as a result of the stamp duty holiday, which encouraged buyers to bring forward their transactions to avoid additional tax.

price growth

He indicates that.... “the total number of property transactions in 2021 was the highest since 2007 and around 25% higher than in 2019, before the pandemic struck. At the same time, the stock of homes on estate agents’ books has remained extremely low, which is contributing to the continued robust pace of house price growth.”

house price growth

Many forecasters, as well as the Nationwide, predict a housing market cooling later this year. Experts say also, that house price growth had outpaced wage growth by a wide margin since the coronavirus pandemic struck.

record high

Adds the Nationwide further - for example, a 10% deposit on a typical first-time buyer home is now equivalent to 56% of total gross annual earnings, a record high. Similarly, a typical mortgage payment as a share of take-home pay is now above the long-run average, despite mortgage rates remaining close to all-time lows.

fastest rate

While affordability has worsened, household finances have been hit by sharp increases in the cost of living, very much on the agenda further throughout 2022. Consumer price inflation apparently reached 5.4% in December,..and yes, it is the fastest annual rate since 1992.

borrowing cost rises

What is more inflation is set to rise further as the energy price cap is lifted in April. This is likely to force the Bank of England to raise borrowing costs again.

extend or improve

So, hold it - we say …wait perhaps, if you possibly can! If you need more space at home in order to live better - stay where you are… extend or improve …and thus add value to your home ready to move when things 'cool' later in the year or next... and you can take advantage.

testing times

As we have been saying ....with Extend Now - Move Later - time will tell as to how prophetic this proves to be…. Good luck - Mint is here to help you cope the best you can in these fast-changing, testing times ahead, as we rev up on into into 2022 ….and beyond!

We at Mint Builders are, of course, here to help locally with all kinds of questions and ideas relating to the priority planning and organisation of your planned home extension or renovation on into 2022 in these difficult financially pressured times .

Feel free to request our project planning and quotation visit to refurbish or extend your home for more ‘liveability’ and increased future sales value for the challenging financial outlook ahead. Contact Mint Builders on 07734 211958 or email mintbuilders@hotmail.co.uk

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