“There may never be a better time to buy a home than 2016” says Waterfords

As 2015 draws to a close, award winning local estate agent Waterfords says the property market can expect much of the same next year, with high demand and a lack of stock determining house prices. However, with predictions of an interest rate rise pushed to late 2016 or beyond, Waterfords believes it is possible next year may offer a limited window of optimum conditions for both buyers and sellers.

It is true that the cost of buying and renting property in the Home Counties has continued to rise over the last twelve months. This is being driven by increasing demand from a growing pool of people finding it difficult to get on the property ladder in the capital. According to Waterfords, even investors priced out of London are looking further afield in the hope of cashing in on the next “hot-spot”, and there is a surge in demand from companies relocating employees and their families to the London commuter belt.

Brendan Cox, Managing Director of Waterfords says “What many people are not perhaps recognising is that we have quite unique market conditions going into 2016, where both vendors and buyers stand to benefit in some way. Vendors, particularly those looking to downsize, are profiting from peak property prices, some of which have not been seen since before the crash of 2008, driven by unprecedented demand. Conversely, whilst high property prices make borrowing more of a challenge for buyers, and certainly those purchasing for the first time, they are also benefitting from exceptionally competitive mortgage rates, both fixed and variable, thus making 2016 a window of opportunity for all”

He continues: “The fact is, people will still do whatever they can to get on the housing ladder, but ironically, most are increasingly frustrated by a lack of choice, as many homeowners are opting to ‘improve not move’. As we are all too aware, there is a ceiling for how high property prices will go before the bubble bursts, or Government intervention is required. So, spending too much on improving a property in an over-heated market may not always offer the best return.”

Looking at what could happen with mortgage rates and lending next year, Financial Services Director at Waterfords, Sean Wickes, comments:
“It would appear that the flavour for an increase in interest rates is beginning to wane again as inflation remains low, suggesting the market does not look poised for a rise just yet. The Asian economies still seem to be struggling with growth and in Europe, even countries like Germany are seeing a slowdown in productivity. The timeline for an increase in rates now looks like it could be slipping to Q3 next year or beyond, unless there is an unforeseen occurrence economically. The market for lending therefore remains very strong, with new rates coming out daily at the moment and fixed rates continuing their downward trend to compete with the variable market. There has never been a cheaper time to borrow and the public are taking full advantage of the great low cost mortgage deals available, which we anticipate will continue through much of 2016.”

Whilst house-building levels have improved, Waterfords has also seen a thriving land and new homes market, predicting that next year, an even great number of homeowners will consider selling off parts of their land to keen developers.

For further information, please contact:
Helen Evison, Waterfords estate agent PR on 01276 804411 / 07920516577