The Cotswold property market remains in good health with prices continuing to rise

The Cotswold property market remains in good health with prices continuing to rise.The volume of buyers continues to outstrip the number of properties for sale and simply, the Cotswolds remains a very sought place to live. This is keeping upward pressure on house prices.

Now is one of the best times for first time buyers to get on the housing ladder. Interest rates are at an all-time low and with the Government’s mortgage guarantee scheme, a first time buyer only needs to save a 5% deposit. If they purchase a property for less than £500,000, up to £300,000 there is no Stamp duty to pay either. And the bank of “Mum and Dad” is very much in play as money is not earning interest in the bank.

Overall, the economy continues to grow. Inflation is high; however, wage inflation is higher therefore not significantly impacting affordability.  Interest rates will increase, which in turn will make mortgages more expensive. Once again, increasing mortgage rates shouldn’t impact affordability because 80% of mortgages are fixed. For the 20% which track, many borrowers will have cash reserves to cover the increases. In addition, current lending criteria, which may change, stress tests affordability prior to lending at 3% higher interest rates.  

These factors point to a positive outlook for the housing market, and I predict house prices will continue to rise in the Cotswolds by another 5% on average over the course of 2022.

On the letting side of the market, we are seeing an increased availability of properties to rent. This is much needed - they are letting fast and for good money. Which means now is an opportune time for landlords to look at rent reviews on their current tenancies.

Landlords are returning to the market for the higher returns being offered, many paying more attention to the energy rating, focussing on more efficient properties ahead of potential further legislation changes. Other positive considerations are Lloyds Bank have just announced they intend to significantly increase their buy to let lending and the notice period landlords need to give tenants to vacate has returned to two months.

If you would like advice on the property market, your sale or let please contact me at tomhj@haymanjoyce.co.uk or 01608 651188.