I talk once more to Mark Homer about the current economic situation and its impact on the property market. We discuss the unpredictability of the market and the uncertainty surrounding interest rates.
Mark shares his thoughts on the potential fall in residential values due to affordability issues and the increasing number of people coming off fixed-rate mortgages. We also touch on the effects of the pandemic on different sectors, such as retail and industrial properties.
- Residential values are expected to fall further due to affordability issues and more people coming off fixed rates.
- The current economic situation is uncertain, and even the Bank of England doesn’t know what will happen in the short term.
- Interest rates have increased significantly, leading to higher mortgage payments for homeowners and higher car finance rates.
- The commercial property market has seen a drop in values, particularly in the industrial sector, while retail has been hit harder.
- Investors should be actively looking for opportunities, as residential prices are likely to continue falling, and next year may offer the best deals in years.
“I suspect residential values will fall some more because affordability, whilst it’s stretched, probably is going to get more stretched because more people are going to come off the fixed rates.”
“We should probably have been in recession by now, but obviously that’s not happened. It’s just another example of how hard it is to predict this stuff.”
“I don’t think the Bank of England know what’s about to happen. So how any of the rest of us are supposed to know, I have no idea.”
“I think next year will be the cheapest time to buy, you know, for many, many years. I think next year, the deals you’ll do next year will be, I imagine, the best deal.”
“There’s always deals out there, even in a really frothy market. It’s just how hard you look, how many people you talk to, how many agents you’ve got on the go.”
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