DM & Co. Homes - The cost of cheap debt...

The cost of cheap debt will be felt by the masses for many a year to come, however one particular byproduct of the homebuyer frenzy that followed the SDLT holiday and sent house prices soaring is yet to be felt.

The real sting in the tail of that cheap debt is the damage that it is about to cause across the UK as fixed term mortgage products come to an end of their fixed terms!

Do not get me wrong, there will be areas that are felt much worse than others - we are somewhat protected in Solihull, demand remains constant and to put it bluntly - if you can't afford to live in your seven hundred thousand pound house, somebody else can and will.

Do I expect the rising rates to have a negative impact on the housing market locally, yes I do, by how much? - far far less than the media purports.

We are achieving within a few percent of the asking prices that we set at DM & Co. - many other agents aren't, and often because values are pitched too highly in the first instance - these properties that are priced high, very rarely sell without reduction and thus skew the figures.

This is a market that is not going anywhere anytime soon, it is and will be felt for a long time yet - will it put people off buying, not at all - whilst writing this, mortgages are at 5.5 - 6% and we are agreeing sales daily, do not put off tomorrow what you can afford to do today - it only gets more expensive in the long run.

We must not forget that each and every single one of us has a unique set of circumstances, so what is right for one is often not right for others. When moving in this market, it is clear that times have changed and any old agent simply will not do. When times get tough, your strategy must be clear.

Please make sure that you do your research and make sure that you back the right horse when putting your most expensive asset in the hands of the right agent, the wrong one will cost you thousands. If you would like to discuss anything property related, please do not hesitate to get in touch.

All the very best,

Dominic