The movers and shakers
A Q&A with Neil Maxwell, Director at Fry & Kent estate agents in Southsea, since he updated us on the situation back in September 2023.
Q According to most news outlets, house prices will fall again in 2024: eg the FT The Times and Forbes. Meanwhile, the Guardian says we’re past ‘peak pain’ but agrees that prices will drop by up to 4% year on year etc. What are your thoughts?
A I find it hard to believe that, given a national housing shortage, prices for a commodity in short supply should fall. Recent indicators before Christmas showed prices making a slight gain. The reality is though as interest rates go up the market stalls until there is a plateau which I believe we have now reached and we have been seeing signs of improvement since October.
Q What does this mean for people who were holding off last year and who would like to move this year?
A With some unbelievable mortgage rates now on offer, I believe it is becoming cheaper to buy than rent so we will see more first-time buyers enter the marketplace and those who have been putting off moving take steps into the market, aiming to fix a mortgage deal before the general election.
Q What does this mean for home improvements? Usually, people do up their bathroom or get a new kitchen when these features are really old or when they move house.
A Home improvements are big business at the moment if you can find a contractor with space in his schedule to help. Refreshing key areas of the home is really helpful and adds to the saleability, but not always the value.
Don’t want to move and want to improve your home instead? Contact us for a free consultation – you might find that your dream house is the one you live in. Carl
Q The cost of living crisis must be squeezing people, but many of the builders we speak to are still busy – what are people having done? Are extensions and major remodels still being considered instead of a move?
A Yes extensions and remodels are being used instead of moving, with the cost of stamp duty legal fees etc some people decide to spend this money on improving their current home rather than give it to the Government.
Q And what about interest rate forecasts?
A Interest rates had been predicted to come down this year and, as an optimist, I hope they do. But there are several global inflationary factors which could impact the ability of the Bank of England to cut rates.
Q Any other predictions or thoughts for this year and beyond?
I believe 2024 will see an active housing market as confidence returns and better mortgage deals are more prevalent. With many people having sat on the fence for so long, it’s a natural conclusion. Anyone contemplating a move should ensure they make use of good estate agents with local knowledge, experience and integrity rather than those relying on computer modelling to come up with the answers!
Check out our guide to planning a home extension.
