The first month of the year has gone by in a flash and the normal busy New Year start to housing market has begun. We are experiencing very high volumes of valuation appointments and viewings, but a far lower percentage of these appointments have resulted into actual business. Sometimes it does take time for people to make definite decisions so we are hopeful the momentum will carry into February and see more confirmed sales and new property listings.
The uncertain last few months of 2025 with the budget dominating the economic landscape and housing market is now behind us and the Bank of England lowered the base rate a week before Christmas so the outlook now is more positive, hence the dramatical upturn in activity. We expect the coming months to be reasonably good for the housing market as mortgage affordability is at the lowest point for over two years which should encourage more first-time buyers back to market. Now mortgage rates are more competitive, the cost of buying a house is becoming more competitive than renting.
The rental market has slowed in recent weeks with fewer new tenant registrations; this could be due to the fact that rents are now sitting at record high levels and becoming difficult to afford? The whole of the lettings sector will be shaken up in the coming months with the implementation of the Renters Rights Act in May. This will put extra burdens on landlords to comply with the new regulations or risk the prospect of penalties. Now is the time for self managing landlords to either get fully on top of learning the Renters Rights Act in its entirety or engage a letting agent.
I am sure the year ahead will throw up many challenges for the housing market but as always, it will no doubt remain resilient.