How Will the Cost of Living Crisis Affect the Property Market?

22 April 2022

It’s clear, in 2022, we are witnessing the cost of living beginning to spiral. Rising interest rates, the increasing costs of food and fuel, plus the increases in council tax bills, and national insurance contributions, all mean that many of us will be feeling the pinch in the coming months.

 

If you are looking to buy, sell, rent or let a property, you may be thinking about how a tighter budget could impact your property prospects. You may be asking questions such as, is now a good time to buy? Or a good time to sell? How will rising interest rates affect your mortgage and how could increasing costs impact your affordability? 

 

How will higher costs impact first-time buyers?

 

First-time buyers may be disheartened by recent headlines, and unsure how the current climate will affect affordability. However, don’t be put off if homeownership is something you are working towards – there are ways and means to make sure you can still make it happen.

 

Jordan MacKay, Branch manager at Aberdein Considine, explains: “Consider your affordability, and look at what you can get for your budget in different areas that you might not have considered before. Mortgage payments, council tax and utility bills can be less outside of the city centre, and you may be surprised at how much more you can get for your money with an added commute. An independent mortgage adviser will be invaluable in helping you to find the best deal and rates to suit your financial situation, so be sure to speak to one about your concerns.”

 

Paul Demarco, ESPC Mortgages, advises first-time buyers to consider new-build homes to help with affordability: “The issue for many first-time buyers is a lack of housing stock driving up competition. Buyers are having to pay well over the property value, which means that in many cases, they don’t have enough of a deposit. First-time buyers can try searching for properties listed at a fixed price, and careful consideration of location, budgets and property types, such as new builds, are all important. If you’re seeking financial support, currently the only scheme available in Scotland is LIFT, which is worth looking into if you think you may meet the criteria.”

 

How will existing homeowners be impacted by rising costs of living?

 

If you are considering selling your home this year, you may be wondering how the timings could affect the prospects of your potential buyers. However, experts do believe now is a good time to sell your home, enabling you to make the most of the competitive market.

 

Jordan MacKay explains, “The market has been very strong so far in 2022, and we have seen some excellent prices being agreed. With that in mind, now may be the time to take advantage of such a buoyant market, as you could make much more than what you think your home is worth, making that next step easier.”

 

If you are a homeowner planning to stay in your current property, you can benefit from the current low interest rates. Paul Demarco states: “Mortgage fixed rates are already being repriced, and the rates are higher as lenders increase both the standard variable rate and their fixed rates. The Bank of England predicts that interest rates will rise again, with a base rate possibly as high as 0.75% by the summer. Anyone within three months of the end of their fixed rate mortgage should contact a mortgage adviser as soon as possible – we can help to secure a new rate that will be lower than say, three-six months from now, and can ideally fix it to mitigate against any future rises.”

 

Jordan concurs: “Whether you’re selling or not, speak to a financial adviser about your concerns. They’ll be able to look at your current mortgage and pension payments and protection policies, to ensure these work for you but also to see if cheaper alternatives are available.”

 

Will the cost of living crisis affect buy-to-let property?

 

Nicky Lloyd, head of ESPC Lettings, says that now presents an ideal time for landlords to expand their property portfolio, or for those considering the world of property investment to take the leap. Tenant demand is rising and stock levels remain low, so the time is perfect for purchasing and developing a high-standard rental property.

 

“Tenants are renting for longer periods than we’ve ever seen before, so adding to your portfolio now could present a good long-term investment,” explains Nicky. “Be mindful of your budget when purchasing, and stick to it. The highest demand is for properties in good locations with a high standard of finish, so factor that into your costs.”

 

2022

Staging Your Home for Selling 2022-05-17 Buying a House in Cash 2022-05-10 The Selling Process in Scotland 2022-05-05 Strongest Ever Spring Sellers' Market 2022-05-03 Understanding a Home Report 2022-04-26 How Will the Cost of Living Crisis Affect the Property Market? 2022-04-22 A Guide To Buying a House or Flat in Scotland 2022-04-18 Thinking of Buying an Investment Property? Here's What You Need to Know 2022-04-12 What's Happened to the Property Market Since Covid-19? 2022-04-06 Energy-Saving Tips For Your Home 2022-04-01 Understanding Your Property's Value 2022-03-28 Why It's Best To Sell Your Home Before Buying Your Next Property 2022-03-24 The Differences Between Buying and Selling Property in Scotland and England 2022-03-21 The Differences That Come with Using a Solicitor Estate Agent 2022-03-16 Want To Sell Your Home Fast? Here's Our Top Tips! 2022-03-10 Fixed Rate or Variable - What's the Best Mortgage? 2022-03-08 Building Survey's - What are they? 2022-03-03 Questions every first-time buyer should ask! 2022-03-01 What Is Required for a Successful Mortgage Application? 2022-02-22 Your Offers Been Accepted - What Happens Next? 2022-02-15 Joint Property Ownership - Everything you need to know 2022-02-09 Mortgages in 2022 - What Could Happen? 2022-02-05 4 Tips for Saving a Deposit 2022-02-01 Reminder - The Law on Fire Alarms is Changing 2022-01-25 The 2022 Scottish Property Market - What Will Happen? 2022-01-21 Top Mortgage Tips for First Time Buyers 2022-01-18 What's the difference in using a solicitor estate agent? 2022-01-11

2021

How the Scottish Housing Market has Changed Over the Last 50 Years 2021-12-27 Can I Get a Mortgage Without Permanent Residency? 2021-12-20 Property Conversion - Everything You Need to Know 2021-12-15 Asking Price - Everything You Need to Know 2021-12-06 Using a Home Report When Buying a Property 2021-11-29 What is Shared Ownership? 2021-11-24 What You Need To Know About Getting a Mortgage When You're Self-Employed 2021-11-19 So, What Is a Mortgage Agreement in Principle? 2021-11-08 Why You Should Use a Solicitor Estate Agent When Moving House 2021-11-03 Thinking of buying a listed property? Here's what you should know 2021-10-26 Everything You Need to Know About EPC Registers and Certificate Guides 2021-10-25 How much can I afford to borrow? 2021-10-20 Nine Steps to Selling Your Home 2021-10-18 Climbing the Property Ladder 2021-10-11 Fire Alarm Laws are Changing in Scotland 2021-09-27 Research You Should Conduct Before Buying a Property 2021-09-20 The LIFT Scheme and How You Can Use It To Buy a Home 2021-09-17 The Latest Scottish Government Guidance on Property Viewings 2021-09-10 NORMAL SERVICE BEING RESUMED IN A BUOYANT HOMES MARKET 2021-08-31 Should You Refurbish Your Property? 2021-08-18 Preparing Your Home for a Successful Sale 2021-08-13 Mortgage Interest Rates - What are they? 2021-08-09 Helping You Consider the Right Location for Your Next Move 2021-07-26 Tips For First Time Buyers To Help Get Them on the Property Ladder 2021-07-19 Scotland's First Home Fund is Closed, What Other Schemes Can Help First Time Buyers? 2021-07-12 Retirement Interest Only Mortgages - What You Need To Know 2021-07-07 How the UK Mortgage Market Has Changed Due to Coronavirus 2021-06-30 How To Boost Your Mortgage Deposit 2021-06-21 New Rules For Fire and Smoke Alarms in Homes Across Scotland 2021-06-17 Preparing To Put Your House on the Market in 5 Key Steps 2021-06-14 How Much Mortgage Can I Get For My Salary? 2021-06-09 How Long Does it Take to Buy Your First House or Flat? 2021-06-02 Is Your House Ready to be Sold?: House Selling Checklist 2021-05-31 What is a Mortgage Agreement in Principle? 2021-05-25 All You Need To Know About EPC Registers and Certificates 2021-05-19 Making the Most of House Viewings 2021-05-12 How the Coronavirus Pandemic has Changed the Priorities of Scottish Home Buyers 2021-05-05 Top Tips on Preparing to Buy a House 2021-04-26 What You Need To Know About Overpaying a Mortgage 2021-04-21 Advice on Buying a Property During the Covid-19 Pandemic 2021-04-14 How the UK Mortgage Market Has Changed Due to the COVID-19 Pandemic 2021-04-13 Scotland's First Home Fund: Applications Now Closed 2021-04-09 Scotland's First Home Fund 2021-04-07 Scottish Stamp Duty Holiday: How Did LBTT Change and When Did it End? 2021-04-06 Property Questions Answered 2021-04-02

2020

Tayside housing market back with a bang 2020-12-10 Digital Guide 2020-05-27

2019

The property market across Scotland - Quarter Two 2019 by SPC Scotland 2019-10-16 LORD PROVOST OPENS NEW-LOOK CENTRE 2019-09-17 The Dundee property market 2019-06-24 A 427 MILLION BOOST FOR THE HOMES MARKET 2019-01-21

2018

Budget Proposals to the ADS Rate 2018-12-18 BUYING OR SELLING GET THE FACTS 2018-08-24 BUYING INTO LIFE ON THE WATERFRONT 2018-08-23 As moving day looms dont panic just prep 2018-05-17 THE BEST OF BOTH WORLDS FOR HOMEBUYERS 2018-04-03 HOME COMFORTS FEND OFF BEAST FROM THE EAST 2018-03-07 V&A DATE MILESTONE FOR THE WATERFRONT 2018-03-02 FLAT SALES EDGE TOWARDS £100 MILLION 2018-01-23 PROPERTY SALES PUSH TOWARDS THE £440 MILLION MARK 2018-01-08

2017

FESTIVE GREETINGS FROM ALL AT THE TSPC 2017-12-19 PUTTING DUNDEE ON THE MAP 2017-11-15 TIME TO BRING YOUR HOME TO THE MARKET 2017-11-01 AUTUMN IS A GOOD SEASON FOR SELLING 2017-10-17 HIGH PROFILE OPTION FOR TOP PROPERTIES 2017-10-09 MARKETING YOUR PROPERTY TO THE MAX 2017-08-21 DO YOU LIKE TO BE BESIDE THE SEA? 2017-06-15 TIME LOOMING FOR A RE-MORTGAGE 2017-06-09 HAS THERE BEEN A BETTER TIME FOR A HOUSE SALE 2017-05-26 TIME TO PUT YOUR FLAT ON THE MARKET 2017-05-04

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TSPC is the trading name of TSPC Holdings Limited, a limited liability company registered in Scotland No 279747 and Tayside Solicitors Property Centre Limited, a limited liability company registered in Scotland No 279746. The Registered Office of both Companies is 11 Whitehall Crescent, Dundee DD1 4AR.

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