Buying and selling your home comes with many trip hazards along the way. Some of them you can predict and prevent, or at least lessen the impact if the issue were to surface. A lot of problems can be managed with clear planning and ensuring that you have the necessary things in place: the finance, a good solicitor, a chartered surveyor if you are buying, and a removals firm or storage unit lined up to receive your stuff for transferring to the next property.
Some things, though, are beyond your control or power to predict.
Geopolitics and the cost of living squeeze
The impact of geopolitics, how countries interact with each other, on the economy should not be underestimated. The continuing crisis in the Middle East, precipitated by the US's war that has been ongoing since February, has seen Iran close the Strait of Hormuz and has had a massive impact on global economies reliant on the passage of tankers carrying crude oil. It has the effect of boosting the cost of refined oil and fuel at the pumps, making transported goods inherently more expensive.
And then, closer to home, there is the cost of living crisis: the inability for a large proportion of the public to afford even the basic requirements to live and survive, which has now morphed into the term "affordability crisis". Different name, same problem. The practical upshot is that focusing on buying life's necessities means the ability to save for a deposit in order to apply for a mortgage becomes increasingly difficult.
First time buyers and the income gap
One of the issues that first time buyers especially are experiencing is the disparity between income inflation and house price inflation. Thirty or forty years ago, the price of a home was within the realms of possibility furnished with a mortgage that only required a multiplier of three, maybe four, times the annual income, and many only had to rely on the one income to do it.
Fast forward to the current time and the housing market has seen an incredible rise in asking prices. Not only does the first time buyer have to somehow find the funds to pay for far higher deposits, but they also have to look at mortgage products which run longer than the previous standard of 25 years, almost certainly requiring dual income to be factored into the affordability calculations, or the reliance on helpful friends and family.
A new PM and Number Ten of the North
In July, the UK had a change of Prime Minister as Andy Burnham, former mayor for Manchester, stepped into Sir Keir Starmer's shoes and took the keys to Number Ten. One of Burnham's first decisions was to set up a "Number Ten of the North" to effectively move the control of UK politics from Westminster and spread it by relocation. If you want to know how this is shaking up the tax debate, we covered what a new PM could mean for council tax and stamp duty reform in a recent piece.
This move has had an interesting impact on house prices. Where traditionally the housing market was generally flatter in the North compared with the South and South East, the political move northwards has seen a bit of a bounce in the North but a depression in prices further south.
Mortgage rates and remortgaging
For those looking for their next home to buy, it would appear that any beneficial mortgage products have been wiped out this month. However, the same market assessment indicates that any plans to remortgage remain strong. So for those who were thinking of moving home, taking out a remortgage to expand their current home might be a more suitable option.
The shoots of optimism, though, appear to be flourishing according to the latest business confidence assessment by Lloyds.
Deciding your next move
At some point, if you want to buy or sell a home and you are struggling with the ability to finance the move, you might have to make some hard decisions and look at other options, such as lowering your expectations or waiting until the market improves. But it's always worth talking to a mortgage broker or other loan professional to understand what mortgage products are available, and which might be the best fit for your particular needs.
However you are approaching your property project, you'll need effective and focused representation to ensure the legal side of things is handled as quickly and efficiently as possible, with the understanding that the experience and knowledge brought to the transaction protects you. This is why you should talk to Homeward Legal as soon as possible to get your transaction moving effectively.
Ready to move forward?
Our conveyancers at Homeward Legal will start work on your plans as soon as you agree to the quotation and appoint them to represent you. Call us now on to get your conveyancing quote started, or to discuss your concerns about your plans to move. You you can also get a quick quote online.