The Lloyds Banking Group has delivered a gloomy forecast as it predicted house prices will continue to fall until 2025.
Britain’s largest mortgage lender, which owns Halifax and the Bank of Scotland, predicted that by the end of this year prices will have fallen 5% in 2023. But the bad news for homeowners doesn’t end there, as the bank said it believes prices will fall by a further 2.4% in 2024.
The group’s forecasts were released as part of their earnings reports this week, and overall they predict a sizable 11% drop overall since their peak, which would signal the largest crash since the knock-on effect of the 2008 financial crisis.
But if that wasn’t bad enough for homeowners and property investors, Santander is predicting an even bigger decrease. The Spanish bank is predicting a larger drop in UK house prices for the whole of 2023 of about 7%, although their forecast for next year is slightly more optimistic with a 2% drop expected.
How To Prepare
With the market now increasingly favouring buyers, if you’re looking to sell your property any time soon then there are a few things you’ll need to keep in mind.
Be prepared to negotiate and remember that buyers may seek more favourable terms in a buyer's market. While you don’t want to sell your property for too little, you’ve got to take into consideration market conditions and negotiate wisely as being stubborn or too inflexible could derail any potential sale.
If you have any repairs or maintenance to address, now is the time to get these sorted. Damage or disrepair could put potential buyers off right away, whereas a well-cared-for property is more likely to sell, especially in a challenging market.
Remember that first impressions can make all the difference, so make sure your property’s exterior is well-maintained and inviting. If you have a lawn, don’t forget to mow it and touch up any paintwork that needs doing before you show any prospective buyers around.
On the flip side, if you’re a buyer looking to purchase a new property then you might be able to strike a good deal and get that dream house for cheaper than expected. Having said that, mortgage rates are currently higher than they were, which is one of the reasons property prices are falling, so it’s not exactly straightforward.
In any case, with more room for manoeuvre on asking prices, you might be able to offset some of your higher mortgage payments by securing your property for a cheaper price.
Choose The Right Estate Agent
Regardless of whether you’re a buyer or a seller, choosing the right estate agent is one of the most important aspects of any property transaction. Ineffective communication, a lack of local knowledge or insufficient experience can hinder any property sale, so it’s always best to do your due diligence when looking for an estate agent.
To do this, conduct thorough research, ask for recommendations and select an estate agent who understands your goals and has a firm grasp of the local property market.