Ban On Ground Rent: What You Need To KnowMortgage News
Financial Conduct Authority No. 952718
As Mortgage Advisors in Northampton, we know this year has been financially challenging for many of our consumers. We also know how much the uncertainty around the mortgage and rental markets can create further concern, which is why we’re here to help.
We have put together a quick guide of the latest updates to help you to make smarter financial decisions in 2023 and beyond. For bespoke advice on your current situation and to get you better prepared for the new year, get in touch with one of our experts today to book a free consultation.
Worried about your current financial position? If you need advice regarding bespoke mortgage products or insurance, including how to best protect yourself and your income in the coming months, our Mortgage Brokers in Northampton are here to help.
Get in touch with us today to book a free 30-minute consultation, or read on to find out the latest news within the industry:
According to Zoopla’s latest data regarding new contracts, the average rental growth totalled 12%, which is double the average growth in earnings within the same time period (now at approximately 6%). This has followed trends across the year in which the average rent for new letting contracts has gone up by £117 each month on average, at approximately £1,078 a month.
For single earners, it has been noted that the highest proportion of their salaries over the last ten years have been paid towards rent (at 35%). With the number of available rental properties down 4% compared with last November, it is no surprise that many are opting to remain within their existing properties to avoid potential rent hike increases.
Rises in mortgage prices have been equally tough on landlords, while new legislation around energy efficiency has also added to increased upfront costs with their properties. Many have sold their properties at peak highs in the market in order to cash out on their investment while they could still turn a profit.
If you’re feeling overwhelmed by your mortgage repayments, speak with one of our Mortgage Brokers today.
As predicted, house price rises have started to slow down as we near the end of 2022.
According to recent statistics from Halifax, the average house price rose by approximately 4.7% in November, based on annual statistics. In October 2022, prices had risen by a whopping 8.2%, indicating a significant drop over the month.
The latest survey from Rics UK Residential Survey revealed buyer activity has fallen for the seventh month in a row. It is expected that over the next 12 months, prices will continue to decline. In addition to this, there is also potential for the construction industry itself to slow down in 2023. In light of rising material and labour costs, many developers have already gone into administration.
If you’re looking to make the most of declining house prices, it might be more strategic to wait until early 2023 to benefit from lower purchases, as we predict prices will continue to fall in the coming months.
If, on the other hand, you’re currently renting a property and are unsure whether to look for a new contract, in some circumstances, it would be advised to renew your existing contract to avoid any additional fee increases. Speak with one of our Mortgage Brokers today and get started on your financial strategy for 2023.