Mortgage sales slump by 42% so far this year

THE latest analysis by specialist property lending experts, Octane Capital, has shown that the number of property transactions fuelled by the mortgage sector has fallen by 42% so far this year, with Britain's more expensive Regions bearing the brunt as higher interest rates dent the purchasing power of British homebuyers.

Octane Capital analysed the volume of mortgage backed property transactions seen since the start of the year (January to March 2023; latest available), comparing this level of mortgage market activity to the 3 months prior (October to December 2022).

The research shows that, so far this year, 87,686 property sales have completed across Britain with the help of the mortgage sector. This marks a 42% drop versus the backend of 2022, equating to 62,270 less homes sold.

The nation's least affordable Regions of the property market have been hit hardest by this decline in mortgage market activity.

In both the South East and London, the level of mortgage sales has fallen by 46% in 2023 versus the final 3 months of 2022.

The East of England has seen a decline of 45%, while the South West and East Midlands are down -43%.

In fact, every Region of Britain has seen mortgage market activity dip by 40% or more since the start of the year, except one.

Scotland has seen the smallest dip in mortgage sales this year, although the Region has still seen a reduction of 29%.

CEO of Octane Capital, Jonathan Samuels, commented:- "We've seen a heightened level of mortgage market turmoil develop over the last year, as interest rates have climbed consistently since the 1st increase was implemented in December 2021. This has spilled over into 2023, with interest rates continuing to climb as the Bank of England has struggled to get a grip on inflation. As a result, the level of market activity coming via the mortgage sector has reduced quite significantly and while this retraction is strongest across the more inflated Regions of the market, every Region has endured a notable hit. The good news is that inflation is starting to fall and we've also seen swap rates start to come down in recent weeks. This suggests that while there is still some way to go, the worst may now be behind us and there's hope that mortgage rates may start to reduce over the coming months."

Mortgage sales volume data sauced from the Gov UK House Price Index.

97% of buyers would pull out of a sale due to a nightmare neighbour

THE latest research by property purchasing specialist, House Buyer Bureau, has found that when it comes to selling your home, a nightmare neighbour could end up costing you over £20,000, although 97% of buyers would pull out of the purchase completely.

House Buyer Bureau surveyed over 2,000 UK homebuyers on the topic of nightmare neighbours to see how it can impact their appetite for a property and prevent a seller from making their move.

The survey found that for most, nightmare neighbours aren't an issue, as 45% stated they have an excellent relationship with their current neighbours.

53% also stated they found it important that they get along with their neighbours, with 65% interacting with them at least once a week.

However, some of us will unfortunately encounter a nightmare neighbour at some point in our lives and this could mean bad news when we come to sell up and move on.

95% of sellers surveyed by House Buyer Bureau said they would offer less for a property they were interested in if they knew it was next door to a nightmare neighbour. Previous research has found that this could mean an asking price reduction of around -8%, which might not sound like much, but equates to £22,869 on the current average UK house price. But an asking price hit may be the least of a seller's worries should they be trying to attract buyer interest with the addition of a nightmare neighbour.

98% of buyers told House Buyer Bureau that a nightmare neighbour would deter them from offering on a property in the 1st place.

What's more, 97% went as far to say that they would pull out of a purchase if they found out they had a nightmare neighbour, even after having an offer accepted.

If a nightmare neighbour were to move in while they live at a property, 63% of those surveyed also said they would move house as a result.

So what makes a nightmare neighbour?  Noise disturbances ranked as the number 1 trait, followed by invasions of privacy, problems over parking arrangements, disagreements over property boundaries and pet-related issues.

Managing Director of House Buyer Bureau, Chris Hodgkinson, commented:- "For the most part, we all learn to get along well with our neighbours, but some of us will inevitably run into the dreaded nightmare neighbour at a point in our lives. Not only can they be incredibly hard to live with, but they can also prevent us from achieving the best price for our property when we do come to sell, or even worse, they can deter us from selling at all. As our research shows, the vast majority of buyers would pull the plug on their purchase, even after having an offer accepted, if they found out a nightmare neighbour was living next door. This is certainly the last thing a seller needs in current market conditions where motivated buyers are hard enough to come by as it is. It can be a real headache, particularly for those who need to sell their home quickly, and in many cases, they may have to look to alternative methods such as quick sale platforms. At House Buyer Bureau, we've seen numerous examples where they've done just that."