Buyers Making Hasty Decisions as House Prices Continue To Rise
House prices in the West Midlands have risen by more than five percent since May, and with demand continuing to outstrip supply, buyers are succumbing to the pressure and making ‘hasty, poorly judged decisions’, says residential property search professional Kate Bould.
The managing director of West Midlands Property Index, which specialises in providing property searches to the region’s conveyancers and residential property solicitors, says the rising average property values mean difficulties for many home buyers:
Bould said: “Prices are rising fast across the region, with the most recent UK Price Index published by Zoopla revealing prices in Birmingham are up by 5.3 per cent compared to May 2020. The new home sector is also registering record highs. Data released in the New Homes Index placed the West Midlands in the top three regions for new home buyer searches in 2021 – with 19,295 new home buyer searches during May, as well as a seven percent increase in demand for luxury homes.”
As the sector reports its fastest moving market in five years, house price forecasts indicate the situation is set to continue. Figures published in Savills’ growth report state that West Midlands’ homebuyers should expect prices to continue to increase by as much as 4.5 percent by the end of 2021, and 5.5 percent in 2022.
She added: “As demand continues to outstrip supply, house buyers are feeling the pressure to buy something. Often this leads to a hasty rather than considered decision over whether a house is the right one in the right location for them. The average cash deposit for West Midlands homebuyers is of 15 per cent of the purchase price – that’s around £40,000 to secure a home. This is a huge financial challenge and commitment for most people, but even greater for first time buyers, who we hear are increasingly turning to relatives for financial help to get them onto the property ladder.”
She adds: “I believe the residential property sector has a duty and responsibility to educate and inform homebuyers of the simple steps and options they have available that will really minimise the risks and protect them from negative financial consequences, to fully support them with their new home purchase.”