Staffordshire developer Walton Homes have refuted claims that the property market is plummeting amid economic uncertainty in the UK, with November being one of the strongest months of 2022 for the business.
The business said that despite the Bank of England raising interest rates, the increased stamp duty thresholds teamed with buyer incentives and an ongoing demand within the Midlands, meant that there was still a strong market, especially within the new build sector.
Paul Martin, Sales & Marketing Manager for Walton Homes, said: “The past three years have been an interesting time for the property market, but because of the impact the Covid-19 pandemic – whereby we experienced an unprecedented bubble for people moving and a shift in trends around buyer requirements with more emphasis on more ground floor space and reception rooms – we’ve experienced something of an anomaly and its more prudent to compare the 2022 marketplace to 2019 rather than the previous two years.
“Walton Homes are experiencing fantastic sales rates, with November being a particularly strong month, something we put down to continuing buyer demand, the Government’s new stance on stamp duty, and tailoring our incentives to assist buyers more: our November marketing campaign, for example, used four buyer profiles – first time buyers, home movers, down sizers, and those with a house to sell – and offered a range of incentives, from support with energy bills or to paying moving fees to assistance with physical items in the home” he said.
Buyers are now considering multiple factors before proceeding with property purchases, according to Harley Cheetham, Director of mortgage brokerage specialists Blossomfield Mortgages.
Harley said: “The property market is constantly moving and while the Bank of England has been increasing the base rate of interest, mortgages are based on a number of important factors, including market stability, political and economic considerations, rather than on the base rates alone, and have in fact been reducing over the past few weeks as the market stabilises.
“Whereas a couple of months ago, rates were standing at six per cent, many lenders are now offering mortgages with interest rates of below five per cent even as the BoE rate increases, and with a big shift toward tracker rates as people are prepared to take an element of risk, it’s still possible to get a rates as low as 3.5 per cent.
“What has tightened up, however, are the stress tests applied by mortgage lenders to assess affordability, so financial responsibility is crucial to secure the best rates, with certain lenders offering incentives to reward good financial planning.
“Lenders are offering further rewards and incentives to buyers including ‘Green Mortgage products’ to those buying new build properties, which entitles them to further cash based financial incentives from directly from the lender. Buyers are becoming more more savvy about the rewards open to them and the requirements they need to meet, and are seeking professional advice to provide an accurate barometer reading of the marketplace before they buy,” he added.
Paul added: “At Walton Homes, we have definitely seen an increased attention to energy efficiency ratings from our buyers, both with a view to wanting lower utility bills and to secure lender incentives where applicable.
“Confidence in the current market is high and buyers 2023 will be seeing an exciting time within the sector, with us looking at the new building regulations and the way we will adopt them to add further energy efficient benefits into our properties.”
