Michelle Hughes answers your questions about the property market.
What is going on with the current property market?
Good question! Following the rush to buy during the stamp duty relief period, we all anticipated the market would slow down. However! So far the past 8 months have been anything but slow. Average UK house prices hit a record level for the fourth month in a row last month and it’s widely reported that there is a housing market frenzy. Some fear this year will bring a property crash and house prices to drop. With the cost of living crisis and the interest rate increases will there still be such a huge demand? Who knows. But for now, the UK property market is certainly a competitive place to be. If you are looking to buy, don’t be surprised if you need to make more than one offer and most likely on more than one property.
What would your advice be to people trying to buy at the current time?
Some Estate Agents are refusing to put offers to sellers unless the potential buyers are either chain-free or under offer on their own properties. Unfortunately, this is not surprising as there are so few available properties out there and many people wanting to buy. In many respects you could say that it is still a ‘seller’s market’. But this doesn’t mean that buyers should just take whatever they can. Sellers are ultimately looking to make the most money from their property but they are also looking for a buyer that can move quickly. So before putting in those offers, you should you do everything you can to put yourselves in the best position for moving quickly.
In particular you should consider:
1. Make sure your finances are in order. If you will be getting a mortgage, make sure you have spoken to a broker and at least have an offer in principle. You may find that some estate agents will insist on this before they will discuss putting in an offer with you.
2. Pre-empt the documentation you will be required to provide to both the estate agents and your conveyancing solicitors. This will include valid identity documents and bank statements. If, for example, you are purchasing with people who are out of the country, start addressing now how you will get their identity documents certified to avoid delays later.
3. Evidencing your deposit. Whether you are getting a mortgage or not you will still need to provide your solicitor with evidence of the source of your funds. If they are savings from your employment, then your solicitor will want to see P60s/wage slips and bank statements.
4. Be keen, but be realistic. There is nothing worse than a potential buyer that agrees to complete the purchase by the end of the month only to find out that is not possible. There will be certain processes that have to be gone through and some that will be beyond your control (Land Registry delays, difficulties in getting hold of certain mortgage lenders, local search hold ups, to mention a few).
How long is the average chain taking to complete?
Unfortunately, there is no such thing as an ‘average chain’. You can have two properties in the chain, that take six months to complete or ten properties that complete in six weeks. It really does depend on the parties in the chain and the properties. All parties need to be proceedable (mortgages in place, all documentation signed and with their solicitors) and all properties need to be saleable. Before a solicitor will report to you that the purchase is ready to proceed, they will need to carry out various checks and searches to ensure that the legal title is satisfactory, and that you are fully aware of your obligations and restrictions. This enquiry stage of the transaction is usually the longest part and can take some months.
The timescale generally provided is two to four months, but in reality, it can be a lot less or more. Once your solicitor has reviewed the legal title to the property, they will be able to give you a better indication of timescales for your purchase. The estate agents should also be able to give you information on the chain.
Most importantly – don’t book anything until your solicitor has confirmed that your hoped-for date can be met!
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