'Once in a generation homes' set to hit the market

Downsizers could help drive the sales market as owners look to cut energy and maintenance costs, Winkworth claims.

Dominic Agace, chief executive of the agency franchise brand, has predicted there will more opportunities for buyers to get much-sought after larger homes.

Speaking on Winkworth’s latest Property Exchange podcast, he said: “We will see larger properties coming on to the market, with energy costs, building and maintenance all up. 

“Downsizers will take that step forward and there will be more opportunity to buy that once in a generation house, which may have been with one family for over 30 years.”

Agace suggested the market is looking rosier since the disastrous mini-Budget in September that contributed to a rise in gilt yields and mortgage pricing.

He said: “We have looked at demand and at the height of the turmoil at the end of September/early October, there were seven applicants for every property compared to 10 applicants for every property before the Mini-Budget. 

“However, when you compare this with 2019, there were seven applicants for every property, roughly the same as now.”

He said the market lives off momentum, which was huge due to low interest rates, adding: “What we are seeing now is a slightly earlier Christmas as people settle down to the new environment with interest rates and the cost of finance.”

Agace predicted that house prices may fall by 5% his year but said that is in the context of 10% price increases already and 20% over the past two years in some areas.

He added: ‘Interest rates are coming down slowly, mortgage products are coming back and we must remember that everyone who has taken out a mortgage in the past five years has been stress tested. 

“We have had 10 years of low rates. Long-term rates are going back to 4 to 5% as the new normal.”

With an Autumn Statement imminent, Agace told the podcast that he feels there is a lack of political will to take on the big long-term challenges in the market. 

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