Increasing house prices: How to keep winning in a challenging market

Shifts in the supply and demand for housing make finding the perfect deal for your clients even more vital than in a steady market. Due to recent circumstances in UK housing, we want to speak to you about how we can support you in a changing marketplace.

House prices rose at an unprecedented scale with uncertainty ahead

We’ve all seen the headlines telling us that house prices across the UK rose at a rate that hasn’t been seen in years. The average UK property price rose by a record 13% to a £294,845 in the year to June 2022. The circumstances around this rise are related to the massive demand from house buyers looking to move up the property ladder across the country. Increasing demand causes increasing house prices, making the journey to buying a new home particularly tricky for those who are trying to secure a mortgage. While the very latest news has shown some of these figures levelling off and even starting to reduce in certain areas, amid the prospect of a possible recession, the volatile nature of the market means we need to be prepared for ongoing uncertainty.

External factors are causing housebuyers challenges, not least the recent cost of living crisis. As a broker, you know the value in understanding the implications of these conditions and how to best support home buyers, especially in the wake of rising interest and SWAP rates.

The market tells a different story around the UK

In some parts of the UK, house prices have risen well above the high average rate. Homes selling in Northern Ireland, Wales, and the Southwest of England, in particular, have been closing way above the national average, demonstrating some of the regional differences in the market. When you factor in concerns about how wages are not rising at the same rate, the cost of living, and the government’s failure to meet build targets for new homes, we can see a picture that won’t fill many house buyers with confidence. While housing supply stats from the last couple of years will have a degree of Covid-impact to consider, the government holds a level of responsibility for closing the gap for ordinary people looking to buy their first home or move into a new property.

Successive governments over many years have failed to hit the targets they set themselves, putting more pressure on the current government to make a move and ensure that the situation doesn’t get any worse. Combined with supply chain issues for building materials and a skills gap in house building expertise, we can appreciate the challenges in building enough new homes in the UK.

Recently announced government plans to help relieve marketplace issues

Details we have outlined above demonstrate some of the current difficulties people are experiencing as buyers in the housing market, government intervention is set to play a role in alleviating some of the issues encountered in recent years. The government has made clear plans for a “levelling up“ strategy that will cover several areas relating to jobs, the economy, and most importantly, housing.

Some of these commitments are related to a £1.5bn Levelling Up Home Building Fund to boost home ownership and develop brownfield sites in the North and Midlands into housing schemes. We see this as a positive move to tackle some of the issues outlined earlier in this article.

That said, there are more people in a position to buy and we want to help you with tools to market yourselves, so here are some of our tips to expand your client base!

Social Media Opportunity

Social media is one of the most powerful tools at your disposal in capturing new clients. Many people are well versed in these platforms, be it Facebook, Instagram, Twitter or TikTok. There are many guides you can take advantage of to better establish yourself in front of a new audience and to sell the benefits of going through a broker to gain the best possible mortgage deal.

Demonstrate your benefits

If social media is the tool to start a conversation with a new client, do you know exactly what it is you want to say? Working in the industry with seasoned homeowners means that it can be easy to forget what you bring to the table. Make sure you have all the benefits of your broker services clearly realised and ready to communicate with an audience who might not be as aware of why they should go with a broker.

Give advice beyond the usual ‘Help to Buy’ options

For many home buyers entering the market, looking for advice can seem a little stale. If every outlet only offers information about going down the Help to Buy route, it can be hard to see the value of going with a broker in the first instance. Take this as an opportunity to demonstrate your expertise to an audience with limited knowledge and offer support on alternatives to HTB such as private schemes or shared ownership options. These might be more important to recommend as HTB is set to end soon.

How we can help

There are plenty of resources you can seek out to help to better market yourself in a challenging marketplace, remember that we are here by your side as well! The last few years have presented some tough times for people looking to fulfil their ambitions of getting a new home. Brokers are in a position to help their clients to get a mortgage product that’s right for them and we can help with our range of products suited to complex incomes. Try using some of the advice above to sell your services to new clients and get in touch with us to help more people move up the property ladder!

Speak to us here to learn more about how we can help.