Property prices have been in the news lately with the media predicting that they will fall over the coming months.
Below are 6 reasons why we don’t believe that prices will fall by as much as they did in the last downturn:
1. The current property data is out of date and doesn’t reflect the post-lockdown reality – there is typically a 3-6 month lag because it takes time for paperwork to be manually processed.
2. Lenders need to lend in order to make money and unlike after the 2008 crash, they have the funds to lend.
3. Because of BREXIT and the elections, there hasn’t been a property boom like there was before the last recession, so the market has no reason to correct itself.
4. The government is pumping huge amounts of money into the economy, which usually results in inflation and in turn, increased property prices.
5. Mortgage loan-to-values are historically low due to stricter lending criteria, so fewer people will be forced to sell.
6. If people lose their jobs and can’t afford their rent, the benefits system will have to pick up the slack as people will still need a roof over their heads.
If you’d like to know more about the Leeds property market or need a hand negotiating your purchase, call us on 0203 633 9255 or message us by clicking here: