At Austin Property Services, we know demand outstrips supply in the housing market. This is great news when you are selling a house, but the positivity changes when it is time to buy a property!
Would you rent after selling but before buying?
Given the varied activity in the housing market of late, with demand outstripping supply, it seems as though many vendors are renting in between selling and buying in the market. For some, this might seem like an unnecessary step, but it could be a smart move for some households.
If you believe the market will change in the next six months or a year, allowing you to get more for your money, renting in the short-term might assist you make more with your money.
One agency believes that as many as 117,500 vendors have decided to rent property this year before purchasing their next home.
This stop-gap measure provides people with more control, and might perhaps help these vendors make better use of their money when it comes to buying a home.
This has been seen in an increase in the following tenancies:
Rolling rental contracts
Short-term rental contracts
Six-month rental contracts
Well-known property market specialist Aneisha Beveridge says: “With many sellers facing pressure from their buyer to move as they struggle to find their next home, rising numbers of homeowners are breaking their chain and renting instead. While moving into a rented home to beat the end of a stamp duty holiday is not new, it is increasingly being used as a stop-gap by house-hunters faced with a lack of stock to buy. Renting before buying has also been driven by house hunters making more long-distance moves. With growing numbers looking to live in areas they know less well, many more are trying before they buy. While moving into a rented home to get to know an area often isn’t people’s preferred option, it’s nearly always more cost-effective than buying the wrong house in the wrong street.”
Aneisha Beveridge concluded by saying; “But while buyers face a lack of stock in the sales market, tenants are suffering from less choice in the rental market too. And this lack of stock is underpinning rental growth, which remains well above normal levels, with few signs it’s likely to significantly slow over the coming months. This lack of stock is also likely to suppress activity, meaning fewer homes could be let in 2021 than in 2020, despite last year’s lockdown.”
Do you know what is happening in the Weymouth housing market?
According to Rightmove house prices in Weymouth are as follows;
“Properties in Weymouth had an overall average price of £280,305 over the last year.
The majority of sales in Weymouth during the last year were terraced properties, selling for an average price of £233,442. Detached properties sold for an average of £397,536, with flats fetching £171,345.
Overall, sold prices in Weymouth over the last year were 10% up on the previous year and 10% up on the 2018 peak of £254,583.”