Inflation remains a major concern for homeowners...
Inflation remains a major concern for homeowners, but this is alongside the prospect of house prices dropping which could see potential vendors becoming sensitive, research suggests.
HBB Solutions conducted a survey of 1,225 UK homeowners, which showed that property market confidence could soon show a downturn, with 96% of homeowners considering a sale saying they would be less likely to sell if house prices do start to drop and they see a fall in the value of their home.
The research found that 89% were worried about the current rate of inflation, as it passed 10% and there are forecasts that the cost-of-living measure could hit 18%. Despite this, actually just 22% of homeowners said that they were concerned that the value of their home would fall in the coming months. The largest concern was found to be the soaring cost of utilities, with fuel and food costs causing the greatest instability for household finances.
HBB Solutions said their research suggested that a further property stock drought could be on the cards should house prices start to suffer.
Chris Hodgkinson, managing director of HBB Solutions, said “Despite many households enduring an incredibly tough time at present, a high level of confidence remains in the property market. While we’ve seen signs that the market is starting to cool, there’s certainly no evidence that a market crash is imminent.
“Of course, it would be naive to expect that such a turbulent economic outlook will have no impact on the housing market and it's inevitable that some form of house price correction is on the horizon following such a heightened period of activity.
“So those considering a sale may want to do so sooner rather than later to ensure they hit the market while it remains robust and prices are still holding strong.”
Article sourced from Estate Agent Today, 25.08.22
