Latest news with #RanaldMitchell
Daily Mail
21-07-2025
- Business
- Daily Mail
End of Britain's housing boom? Warning issued for sellers
Advertisement British homeowners trying to sell their properties are facing a 'reality check', experts warned today after the biggest July drop in asking prices for at least two decades. The average price tag on a home coming to market fell to £373,709 this month - marking a £4,531 or 1.2 per cent decrease on June, according to Rightmove. While there is often a seasonal dip in prices in July, this is the largest monthly price drop at this time of year recorded by the firm over more than 20 years of data. Rightmove has also cut its house price forecast for 2025 from 4 per cent growth to 2 per cent amid concerns over a high level of seller competition limiting price growth, although the company is retaining its prediction of 1.15million transactions this year. London, and particularly inner London, has been a driver of asking price falls among new sellers, according to the firm. Price tags across London have fallen by 1.5 per cent month-on-month, rising to 2.1 per cent average price falls in inner London. April's increase in stamp duty has had a particular impact in London where property prices are higher. But property experts believe the market is undergoing a reset rather than collapsing, with over-optimistic sellers now correcting ambitious sale prices. Ranald Mitchell, director at Charwin Mortgages, said: 'This is not a crash, it's a reality check. Sellers can no longer name their price and expect the market to play along.' He added: 'With stock levels surging and buyers laser-focused on value, overpriced homes are being left to gather dust. The drop in asking prices is proof that wishful thinking is being replaced by market sense. 'Savvy sellers who price sharply are seeing results. Rightmove's trimmed forecast makes sense in a market that is adjusting, not collapsing.' By contrast, the North East of England has seen a 1.2 per cent rise in prices month-on-month, continuing a trend of less expensive areas seeing faster price growth. Summer sellers typically need to work harder to capture distracted buyers' attention. Justin Moy, managing director of EHF Mortgages, said: 'This has all the hallmarks of seasonal demand combined with the fall-out from April's increased stamp duty costs. 'With mortgage rates holding and lenders digging deeper into their pockets this could just be a summer blip, but the Government needs to keep a close eye on this trend.' Babek Ismayil, founder at property transaction platform OneDome, added: 'Sellers are waking up to the fact that, if you put your property on the market at an unrealistic price, it's simply not going to sell in the current market. 'And if it doesn't sell and languishes on portals, that can become a problem and see the achievable price dwindle further. This has been the case for a few years now but there now appears to be a shift, which may get the market moving in earnest finally.' Among the homes reduced in London is a freehold split-level two-bedroom flat for sale in Richmond which was put on the market in 2024 for the first time in 60 years. The property was first listed last September for £1.4million, before being reduced to £1.35million in November, £1.285million in January and £1.2million in May. In Kent, a three-bedroom semi-detached house in Kemsing was put on the market for £740,000 last October, but cut to £725,000 in February and £695,000 in June. And buyers in Hampshire could look at a two-bedroom thatched country house in Martin. The New Forest property was listed for £549,000 in March, but has now been cut to £495,000. Katy Eatenton, mortgage and protection specialist at Lifetime Wealth Management, said: 'Increased stock levels are giving sellers a reality check and they're pricing more realistically. 'People have come to understand that over-pricing can see you under-achieve when it comes to the sale price agreed. This is not a sign of a property market imploding, just one that is becoming more rooted in reality.' Tempting pricing from new sellers is said to be helping to improve buyer affordability, enticing new buyers into making inquiries. With mortgage rates falling and two more Bank of England base rate cuts still expected in 2025, Rightmove believes the overall outlook for the second half of the year remains positive. Patricia McGirr, founder of the Repossession Rescue Network, said: 'Yes, asking prices are sliding, but where I am, it's a tale of two markets. 'Family homes with decent space are holding strong. But in the investment world? Buyers are driving hard bargains and sellers are blinking first. 'Tempting price tags might boost affordability, but they're also a litmus test: if your property's not shifting, it's probably overpriced, overlooked or overhyped. 'The second half of 2025 may look rosier, but right now, the smart money's negotiating hard and getting what it wants.' Many lenders have recently made changes to their criteria, allowing some borrowers to potentially take out bigger loans. Rightmove's mortgage tracker indicates that the average two-year fixed mortgage rate is now 4.53 per cent, compared with 5.34 per cent a year earlier. Colleen Babcock, a property expert at Rightmove, said: 'We're seeing an interesting dynamic between pricing and activity levels right now. 'The healthy and improving level of property sales being agreed shows us that there are motivated buyers out there who are willing to finalise a deal for the right property. 'What's most important to remember in this market is that the price is key to selling. 'The decade-high level of buyer choice means that discerning buyers can quickly spot when a home looks overpriced compared to the many others that may be available in their area. 'It appears that more new sellers are conscious of this and are responding to this high-supply market with stand-out pricing to entice buyers and get their home sold.' Ms Babcock added: 'Crucially, buyer affordability is heading in the right direction, and another two (Bank of England base rate) cuts before 2026 would be a big boost to this.' Phillip Bishop, managing director at Perry Bishop in Cirencester, Gloucestershire, said: 'We're seeing significantly higher stock levels than a year ago but mitigated in part by a good increase in buyer registrations and viewing levels compared with last year. 'Buyers are taking their time and viewing more before deciding, and the serious and motivated sellers are pricing sensibly and getting success.' He added: 'Rarely available properties are still receiving mass interest and multiple offers. 'The Cotswolds summer market can slow over the holidays, but we expect a second wave of serious buyer activity in the autumn, with serious motivated buyers wanting to agree their purchase.' Rightmove's report was released as property firm Hamptons downgraded its 2025 rental growth forecast from 4.5 per cent to 1.0 per cent across Britain. It said this reflected a faster-than-expected market slowdown. It said the primary driver behind this cooling rental market has been the transfer of demand from the rental sector to the sales market. As mortgage rates have fallen, homeownership has become more accessible, leading to strong first-time buyer activity, Hamptons said. Hamptons said that rents on newly let properties rose by 0.4 per cent year-on-year across Britain in June, reaching £1,369 per month - the weakest growth since August 2020. Aneisha Beveridge, head of research at Hamptons, said: 'The rental market has softened more quickly than we anticipated towards the end of last year. 'What initially appeared to be a London-centric slowdown has now spread across the country, with rents declining in multiple regions and growth easing elsewhere. 'A combination of falling mortgage rates and a weaker labour market has shifted the dynamics - more affluent renters are becoming first-time buyers , while the economic slowdown is limiting what others can afford.
Daily Mail
21-07-2025
- Business
- Daily Mail
EXCLUSIVE The end of Britain's housing boom? Experts issue warnings for sellers amid biggest July downturn in two decades - as map shows where prices are falling the most
British homeowners trying to sell their properties are facing a 'reality check', experts warned today after the biggest July drop in asking prices for at least two decades. The average price tag on a home coming to market fell to £373,709 this month - marking a £4,531 or 1.2 per cent decrease on June, according to Rightmove. While there is often a seasonal dip in prices in July, this is the largest monthly price drop at this time of year recorded by the firm over more than 20 years of data. Rightmove has also cut its house price forecast for 2025 from 4 per cent growth to 2 per cent amid concerns over a high level of seller competition limiting price growth, although the company is retaining its prediction of 1.15million transactions this year. London, and particularly inner London, has been a driver of asking price falls among new sellers, according to the firm. Price tags across London have fallen by 1.5 per cent month-on-month, rising to 2.1 per cent average price falls in inner London. April's increase in stamp duty has had a particular impact in London where property prices are higher. But property experts believe the market is undergoing a reset rather than collapsing, with over-optimistic sellers now correcting ambitious sale prices. Ranald Mitchell, director at Charwin Mortgages, said: 'This is not a crash, it's a reality check. Sellers can no longer name their price and expect the market to play along. This two-bedroom detached bungalow for sale on a cul-de-sac in the village of Walton near Felixstowe in Suffolk was listed for £300,000 in April, but has now been cut to £280,000 'With stock levels surging and buyers laser-focused on value, overpriced homes are being left to gather dust. The drop in asking prices is proof that wishful thinking is being replaced by market sense. 'Savvy sellers who price sharply are seeing results. Rightmove's trimmed forecast makes sense in a market that is adjusting, not collapsing.' What do the experts say about falling asking prices for UK homes? Ranald Mitchell, director at Charwin Mortgages: 'This is not a crash, it's a reality check. Sellers can no longer name their price and expect the market to play along. With stock levels surging and buyers laser-focused on value, overpriced homes are being left to gather dust. The drop in asking prices is proof that wishful thinking is being replaced by market sense. Savvy sellers who price sharply are seeing results. Rightmove's trimmed forecast makes sense in a market that is adjusting, not collapsing' Justin Moy, managing director at EHF Mortgages: 'This has all the hallmarks of seasonal demand combined with the fall-out from April's increased stamp duty costs. With mortgage rates holding and lenders digging deeper into their pockets this could just be a summer blip, but the government needs to keep a close eye on this trend.' Katy Eatenton, mortgage and protection specialist at Lifetime Wealth Management: 'Increased stock levels are giving sellers a reality check and they're pricing more realistically. People have come to understand that over-pricing can see you under-achieve when it comes to the sale price agreed. This is not a sign of a property market imploding, just one that is becoming more rooted in reality.' Babek Ismayil, Founder at OneDome: 'Sellers are waking up to the fact that, if you put your property on the market at an unrealistic price, it's simply not going to sell in the current market. And if it doesn't sell and languishes on portals, that can become a problem and see the achievable price dwindle further. This has been the case for a few years now but there now appears to be a shift, which may get the market moving in earnest finally.' Patricia McGirr, founder at Repossession Rescue Network: 'Yes, asking prices are sliding, but where I am, it's a tale of two markets. Family homes with decent space are holding strong. But in the investment world? Buyers are driving hard bargains and sellers are blinking first. Tempting price tags might boost affordability, but they're also a litmus test: if your property's not shifting, it's probably overpriced, overlooked or overhyped. The second half of 2025 may look rosier, but right now, the smart money's negotiating hard and getting what it wants.' By contrast, the North East of England has seen a 1.2 per cent rise in prices month-on-month, continuing a trend of less expensive areas seeing faster price growth. Summer sellers typically need to work harder to capture distracted buyers' attention. Justin Moy, managing director of EHF Mortgages, said: 'This has all the hallmarks of seasonal demand combined with the fall-out from April's increased stamp duty costs. 'With mortgage rates holding and lenders digging deeper into their pockets this could just be a summer blip, but the Government needs to keep a close eye on this trend.' Babek Ismayil, founder at property transaction platform OneDome, added: 'Sellers are waking up to the fact that, if you put your property on the market at an unrealistic price, it's simply not going to sell in the current market. 'And if it doesn't sell and languishes on portals, that can become a problem and see the achievable price dwindle further. This has been the case for a few years now but there now appears to be a shift, which may get the market moving in earnest finally.' Among the homes reduced in London is a freehold split-level two-bedroom flat for sale in Richmond which was put on the market in 2024 for the first time in 60 years. The property was first listed last September for £1.4million, before being reduced to £1.35million in November, £1.285million in January and £1.2million in May. In Kent, a three-bedroom semi-detached house in Kemsing was put on the market for £740,000 last October, but cut to £725,000 in February and £695,000 in June. And buyers in Hampshire could look at a two-bedroom thatched country house in Martin. The New Forest property was listed for £549,000 in March, but has now been cut to £495,000. Katy Eatenton, mortgage and protection specialist at Lifetime Wealth Management, said: 'Increased stock levels are giving sellers a reality check and they're pricing more realistically. 'People have come to understand that over-pricing can see you under-achieve when it comes to the sale price agreed. This is not a sign of a property market imploding, just one that is becoming more rooted in reality.' Tempting pricing from new sellers is said to be helping to improve buyer affordability, enticing new buyers into making inquiries. With mortgage rates falling and two more Bank of England base rate cuts still expected in 2025, Rightmove believes the overall outlook for the second half of the year remains positive. Patricia McGirr, founder of the Repossession Rescue Network, said: 'Yes, asking prices are sliding, but where I am, it's a tale of two markets. 'Family homes with decent space are holding strong. But in the investment world? Buyers are driving hard bargains and sellers are blinking first. 'Tempting price tags might boost affordability, but they're also a litmus test: if your property's not shifting, it's probably overpriced, overlooked or overhyped. 'The second half of 2025 may look rosier, but right now, the smart money's negotiating hard and getting what it wants.' Many lenders have recently made changes to their criteria, allowing some borrowers to potentially take out bigger loans. Rightmove's mortgage tracker indicates that the average two-year fixed mortgage rate is now 4.53 per cent, compared with 5.34 per cent a year earlier. Colleen Babcock, a property expert at Rightmove, said: 'We're seeing an interesting dynamic between pricing and activity levels right now. 'The healthy and improving level of property sales being agreed shows us that there are motivated buyers out there who are willing to finalise a deal for the right property. Key price figures from Rightmove's report Average asking price of property has fallen to £373,709 in July, down 1.2% or £4,531 since June London is the biggest regional driver of new seller asking price falls this month, down 1.5%; with inner London down 2.1% The number of sales being agreed is 5% higher than at this time last year Number of potential future buyers contacting estate agents about homes for sale is 6% higher than last year Average new seller asking prices just 0.1% higher than they were a year ago. Average two-year fixed mortgage rate is 4.53%, compared with 5.34% at this time last year Key price figures from Rightmove's report 'What's most important to remember in this market is that the price is key to selling. 'The decade-high level of buyer choice means that discerning buyers can quickly spot when a home looks overpriced compared to the many others that may be available in their area. 'It appears that more new sellers are conscious of this and are responding to this high-supply market with stand-out pricing to entice buyers and get their home sold.' Ms Babcock added: 'Crucially, buyer affordability is heading in the right direction, and another two (Bank of England base rate) cuts before 2026 would be a big boost to this.' Phillip Bishop, managing director at Perry Bishop in Cirencester, Gloucestershire, said: 'We're seeing significantly higher stock levels than a year ago but mitigated in part by a good increase in buyer registrations and viewing levels compared with last year. 'Buyers are taking their time and viewing more before deciding, and the serious and motivated sellers are pricing sensibly and getting success.' He added: 'Rarely available properties are still receiving mass interest and multiple offers. 'The Cotswolds summer market can slow over the holidays, but we expect a second wave of serious buyer activity in the autumn, with serious motivated buyers wanting to agree their purchase.' Rightmove's report was released as property firm Hamptons downgraded its 2025 rental growth forecast from 4.5 per cent to 1.0 per cent across Britain. It said this reflected a faster-than-expected market slowdown. It said the primary driver behind this cooling rental market has been the transfer of demand from the rental sector to the sales market. As mortgage rates have fallen, homeownership has become more accessible, leading to strong first-time buyer activity, Hamptons said. Hamptons said that rents on newly let properties rose by 0.4 per cent year-on-year across Britain in June, reaching £1,369 per month - the weakest growth since August 2020. Aneisha Beveridge, head of research at Hamptons, said: 'The rental market has softened more quickly than we anticipated towards the end of last year. 'What initially appeared to be a London-centric slowdown has now spread across the country, with rents declining in multiple regions and growth easing elsewhere. 'A combination of falling mortgage rates and a weaker labour market has shifted the dynamics - more affluent renters are becoming first-time buyers, while the economic slowdown is limiting what others can afford. 'That said, this isn't the end of the rental growth story.' She said that a shortage of rental homes 'remains unresolved' and regulatory changes are likely to add to landlords' costs, constraining supply. Hamptons' lettings index uses data from the Connells Group to track changes to the cost of renting. It is based on achieved rather than advertised rents. Nathan Emerson, chief executive of property professionals body Propertymark, said: 'We have seen encouraging signs from (Chancellor) Rachel Reeves's Leeds Reforms which are designed to potentially better help lenders serve those on lower incomes. 'However, such reforms alone will not help keep house prices manageable without the UK Government and the devolved administrations meeting their individual housing targets to keep pace with real world demand.'
The Sun
16-06-2025
- Business
- The Sun
Interest rates ‘being handled like a slow-motion car crash' as Bank of England to AVOID a rate cut
THE Bank of England is widely expected to hold interest rates this week, in a blow to first-time buyers and homeowners. The Monetary Policy Committee will announce its latest base rate decision on Thursday. 1 It had initially been expected the Bank would cut the base rate this month - a move that would have seen mortgage rates drop for millions. But worse-than-expected inflation data in May means forecasters expect fewer - and slower - interest rate cuts this year. It means home buyers and owners will be dealing with higher interest rates at a time when inflation remains high and wage growth has remained sluggish. Interest rates have been cut four times since August last year and now sit at 4.25%. But this is still far higher than five years ago, when rates were reduced to a historic low of 0.1%. Big banks have been hiking their interest rates on mortgages in anticipation of fewer base rate cuts this year. They include Halifax, Barclays and Santander. Some brokers are now urging the Bank to make a bold move and go ahead with further rate cuts to help out struggling households. Ranald Mitchell, director at Charwin Mortgages, told The Sun: "A bold but sensible series of rate cuts could finally ease the unbearable pressure on households, revive growth, and start plugging the Treasury's black hole through stronger tax revenues." He warned that "waiting for the perfect moment" to cut rates is "paralysing progress". "Someone has to take the initiative and break this cycle, because right now, it's being handled like a slow-motion car crash," he said. What brokers are saying The majority of brokers believe the Bank is set to hold rates for June. This is because cutting interest rates too quickly or sharply could lead to higher inflation. The Bank uses interest rates to keep inflation at a low level. If interest rates are high, people spend less money and price rises slow down. The Bank's target is to keep inflation at or below 2% - but it's currently at 3.4%. Stephen Perkins, managing director at Yellow Brick Mortgages, said: "Whilst all indicators point to a base rate reduction being beneficial and required, the Bank of England rarely take any decisive action based upon a single month's data. "The chances therefore are a hold in June and cautiously await more data before any potential rate cut." However with the latest inflation data due to come out on Wednesday, there is a chance the Bank could be influenced by that. Kundan Bhaduri, entrepreneur at The Kushman Group, told Newspage the "siren call for a rate cut" is "deafening" - but the Bank of England is in an "impossible bind". Bhaduri added that an ill-timed move on interest rates "could easily reignite inflation, proving the Bank has succumbed to political pressure rather than economic prudence". Rob Peters, principal at Simple Fast Mortgage, said the decision could "go right down to the wire". Still, he said it's most likely interest rates will be cut in August rather than this week. On the other hand, Faisal Sheikh, managing director at Monmouth Capital, said he expected a "small cut". "The downsides to a small cut are limited, especially with recent poor economic data," he said. What does this mean for the economy - and for your wallet? All of this comes against a difficult economic backdrop. The UK economy contracted by 0.3% in April, partly due to the impact of huge tariffs imposed by US President Donald Trump. But experts say it's also been affected by Government's tax hikes on businesses and rising household bills putting a dent in the public's pockets. On top of that, unemployment is rising with vacancies and payrolled jobs dropping sharply. There are also fears inflation could rise further because conflict in the Middle East is likely to raise oil prices. Frances Haque, chief economist at Santander UK, told The Sun that interest rate cuts may be restricted as a result. "Neither of these are good for the UK economy or the chancellor who wants to see the economy grow consistently," she said. "There is hope that inflation will start to fall to levels compatible with the 2% target this year, but rising geopolitical risks may make that more challenging." If you're a first-time buyer or coming to the end of your mortgage term, you may be watching this week's base rate announcement closely. Craig Calder, director of mortgages at TSB, said: "Whatever the outcome, make sure you talk to your bank or mortgage broker to ensure you get the best deal that suits your individual needs – as it's one of the biggest financial decisions you can make. "And don't forget that most lenders will let you agree a mortgage rate three to six months in advance, with no obligation to take it if lower rates are available when you are ready purchase." Plus, there are still plenty of schemes available to help first-time buyers get onto the ladder. It was confirmed in the Spending Review last week that the Government's Mortgage Guarantee Scheme will relaunch permanently in July. The scheme allows buyers to purchase a home with just a 5% deposit. How to get the best deal on your mortgage IF you're looking for a traditional type of mortgage, getting the best rates depends entirely on what's available at any given time. There are several ways to land the best deal. Usually the larger the deposit you have the lower the rate you can get. If you're remortgaging and your loan-to-value ratio (LTV) has changed, you'll get access to better rates than before. Your LTV will go down if your outstanding mortgage is lower and/or your home's value is higher. A change to your credit score or a better salary could also help you access better rates. And if you're nearing the end of a fixed deal soon it's worth looking for new deals now. You can lock in current deals sometimes up to six months before your current deal ends. Leaving a fixed deal early will usually come with an early exit fee, so you want to avoid this extra cost. But depending on the cost and how much you could save by switching versus sticking, it could be worth paying to leave the deal - but compare the costs first. To find the best deal use a mortgage comparison tool to see what's available. You can also go to a mortgage broker who can compare a much larger range of deals for you. Some will charge an extra fee but there are plenty who give advice for free and get paid only on commission from the lender. You'll also need to factor in fees for the mortgage, though some have no fees at all. You can add the fee - sometimes more than £1,000 - to the cost of the mortgage, but be aware that means you'll pay interest on it and so will cost more in the long term. You can use a mortgage calculator to see how much you could borrow. Remember you'll have to pass the lender's strict eligibility criteria too, which will include affordability checks and looking at your credit file. You may also need to provide documents such as utility bills, proof of benefits, your last three month's payslips, passports and bank statements.
