Member Article

Hampshire housebuilders restore hope for homebuyers by debunking market myths

Barratt and David Wilson Homes are restoring confidence for homebuyers in the region by debunking some key myths surrounding the housing market.

The leading housebuilders, which are bringing new homes to the county, want to reassure buyers that myths such as radical slowdowns and rocketing interest rates causing fewer mortgage deals are not all necessarily true.

Tammy Bishop, Barratt and David Wilson Homes Sales Director, said: “For many would-be homebuyers, the housing market can look daunting in the current state of affairs but we’re here to reassure property seekers that it’s still a strong market.

“There are many things being reported which might put people off a move, but we’d like to restore confidence by showing buyers that the market isn’t declining, but simply returning to a former pre-pandemic level.”

Myth 1: The housing market has suffered a drastic slowdown Property purchasing specialist, House Buyer Bureau, recently announced a drastic slowdown to the UK’s housing market and a fall in the average level of monthly transactions in the last six months. This, however, is largely down to the bursting of the bubble of a booming market which was the result of the COVID-19 pandemic, when demand for housing was at its peak.

Whilst the appetite for a house move has decreased, Rightmove has confirmed there’s still a 20% increase in buyer demand compared with 2019.

Myth 2: Interest rates have rocketed While interest rates have risen, the increases are not as drastic as they may seem. A comparison by Statista shows that the average five-year fixed rate mortgage in March 2019 was 2.03%, and the current average as of September 2022 was 3.96%. What’s more, the current average is less than those in a 10-year period between March 2000 and December 2010.

Historically, fluctuating mortgage rates aren’t uncommon and, following rapid growth, is sometimes rapid decline. As noted by Think Plutus, interest rates rose towards the end of the 1980s, partly under the pressure of house price rises, and went from 17% in 1979 down to 9% in 1982, and were back to 14.88% by October 1989.

Myth 3: There aren’t many lenders offering mortgage deals Many prospective buyers fear that there aren’t many mortgages out there which, despite some lenders waiting for the market to settle down, isn’t strictly the case.

Interest rates have risen but the Financial Times reports that Barclays, Skipton Building Society, NatWest, Virgin Money and Nationwide are all among those to back the market with new mortgage deals.

Tammy added: “There are still plenty of mortgage options available. Furthermore, when buying with Barratt and David Wilson Homes, we can introduce our customers to an Independent Mortgage Adviser to provide a greater insight into affordability and find the best deal possible.”

Myth 4: You need a lot of money to buy a house If it isn’t fear of interest rates for potential purchasers, it’s the worry of increasing house prices. On the contrary, Barratt and David Wilson Homes can help new buyers with a range of moving schemes, including the Key Worker Deposit Contribution scheme, and the Deposit Boost scheme, which will make a property purchase much more affordable.

Tammy said: “We have a wide range of offers and moving schemes available across our developments. We can also help our customers secure a mortgage deal that suits their needs.”

This was posted in Bdaily's Members' News section by Barratt Homes .