Tue 14 Feb 2023
London’s average property price grew by almost 3 per cent between November and December, according to the latest Halifax house price index. Jeremy Leaf, principal of Jeremy Leaf & Co, told City AM that sales were taking longer as buyers reclaimed the balance of power due to the cost of living and interest rate rises.
A proper survey is worth spending money on to unearth problems before buying a home. What you need will depend on the property you are buying, as well as your budget. Jeremy Leaf told The Times: ‘A condition report is useful for a new or modern property and homebuyer report is good if you want a bit more certainty. A building survey will be useful if the property is 60-plus years old of unusual construction.'
London has the slowest annual price growth of any region in England, with average prices increasing by 6.3 per cent in the year to November 2022, according to the Office of National Statistics (ONS). Jeremy Leaf told The Evening Standard: ’On the ground, since our return to work nearly three weeks ago, we have noticed the release of some pent-up demand now mortgage rates have begun to fall.'
House pries registered the most widespread falls in 13 years last month as buyer demand and sales activity shrank more sharply than expected, according to the Royal Institution of Chartered Surveyors. Jeremy Leaf told This is Money: ‘Housing market activity dropped and sales are taking longer as buyers reclaim the balance of power due principally to the cost of living and interest rate rises. Prices may soften further before mortgage costs fall despite recent modest reductions as concerns about job security increase. Lack of supply means prices are unlikely to fall sharply as we have found many buyers waiting until early 2023 to see if mortgage rates settle before deciding to move.'
The number of buyers pulling out of property sales and collapsed chains has risen sharply over the past three months. Jeremy Leaf told The Telegraph: ’[After the mini-Budget], it felt like someone had pulled the plugs out the wall. It went really dead, we weren’t getting emails, people weren’t coming in, we weren’t getting calls, it was awful. People were pulling out of deals or having to renegotiate.'