Another week, another prime minister!

And more questions than answers around the state of the UK economy and its housing market.

What will Rishi Sunak and Jeremy Hunt decide to do with the economy and property? The Government need to show growth to win the next election, the easiest way to achieve this is to stimulate the property market. We await the new Chancellor’s economic plan due on 17 November.

Lloyd’s Banking Group has predicted that house prices will fall by 8% next year. As the largest mortgage lender in the country, responsible for 1 in 3 mortgages; when they talk, we listen. However, they have been known to be rather conservative in their estimates in the past and house price inflation has exceeded their forecasts in both 2020 and 2021.

But, if we see this fall of 8%, is it really that significant, given that the increase over the last 12 months to August has been 13.6% (according to ONS). So, a fall of anything less than 13% won’t even set the market back a year.

The negative tone of the national news outlets regarding a ‘property crash’ or ‘property price drop’ has fear-mongered potential homebuyers and some highly leveraged investors.

Right now, buyers are nervous, waiting and watching; so in the words of Warren Buffet; “be fearful when others are greedy, and greedy when others are fearful.”

Take the opportunities that are coming along:

More housing stock  + less buyers = Lower prices and more opportunity.