Allan's December Market Update

Published: 02/12/2022 By Allan Fuller

In the bleak mid-winter,
  Frosty wind made moan,
  Earth stood hard as iron,
  Water like a stone,
  Snow had fallen, snow on snow 

 Bleak may seem to be the prospect for next year. Looking back on this year it has certainly been a momentous period, we lost our beloved Queen, two Prime Ministers |(not so beloved) and plenty more besides. The political shenanigans over recent weeks have only added to confusion. Interest rates have shot up around the world, here for people with a mortgage who are not on a fixed interest rate they are feeling the pain of much higher repayments than when this year started, even those on fixed rates will be looking with concern at the date their deal switches to a floating rate. Added to this there is the cost-of-living crisis.

 Predictions abound of falling property values, the media love bad news. It may happen, but what has to be borne in mind is that the greatest problem, certainly in London and virtually all of the UK is a lack of housing. Activity may slow, but it could be that values only soften slightly. A suggestion being bandied about generally is a fall of between 5% and 10%, in itself that sounds bad, but bear in mind the considerable increases over the last few years for the vast majority of homeowners especially in London. We should all remember that a property is first and foremost a home, not just an investment, the fact that values increase over time is a bonus.

 Christmas is a time that many make their decision and make new year resolutions, this will often involve property and moving home, in fact property portals regularly report Boxing Day the most active time of the year for people searching, and we can confirm that is true, January is often a busy time of people looking at property.

 For us winter is far from being bleak,
 Mid-winter the days are getting longer,
 The urge to move gets stronger,
 For spring is round the corner