The energy crisis has been a great source of worry for many, with soaring prices and fears about sufficient supplies the main concerns. How then, is this affecting the property market? As the leading Chelmsford estate agents, we’re here to show you how you can still buy or sell a home during this challenging time.
Why are prices so high?
Why have energy prices risen so much? As countries began to recover from the pandemic, the supply of gas could not match the level of demand – leading to higher prices. This was made worse by insufficient yields from renewable sources such as wind and solar, plus a cold winter forcing people to turn their heating up.
Last but not least, Russia’s invasion of Ukraine and the resulting discord with other European countries has threatened supplies and further raised prices. Russia is one of the world’s largest producers of oil and gas, and it supplied the EU with 40% of its gas in 2021. While the UK isn’t directly reliant on Russian energy supplies, the knock-on effect has been undeniable.
Help for property owners
While prices have risen and property owners are feeling the squeeze, it’s not all doom and gloom! The UK Government made the decision to freeze energy bills for a typical household at £2,500, which takes around £1,000 off of the predicted prices for next year. The ‘mini budget’ recently presented by the Chancellor also included a decrease in Stamp Duty, which will particularly benefit those buying a home for the first time. A reversal of the national insurance rise was also announced, along with a cut in the basic rate of income tax. There are also a number of schemes to help people pay their energy bills – so do your research to see if you are applicable for any of those.
What is the current outlook?
Inflation is expected to decline quickly after spring 2023, so there is light at the end of the tunnel. For those looking to buy a property, the news that they can just focus on the upcoming winter and then expect the cost of living to fall is welcome news. What can you do in the meantime? Well, there are a number of ways you can save on your energy bills. Turning off the light when you leave a room, cutting down on the number of times you use your washing machine per week, and draught-proofing your windows and doors can all make a difference.
Finding the right property
If you are searching for a new home and are worried about energy bills, make sure to prioritise energy efficient properties in your search. Things like wall, roof, loft and floor insulation can all help to keep a home warmer, and solar panels and micro combined heat and power (micro-CHP) systems lessen reliance on fossil fuels. If you are selling a home and have made those changes to the property, be sure to point them out to us! With such a strong desire for energy efficient homes from buyers, they will really help your property to stand out from the crowd.
Our experience
Here at McCartney Sales & Lettings, we have weathered tough periods alongside the buyers and sellers that we help. From global recessions to the pandemic, we have tailored our approach and provided the perfect level of support when things that are out of our clients’ control cause them stress and anxiety. While the cost-of-living crisis may be challenging, with the right strategy and expert guidance, there is no reason why finding the perfect home or getting a great price for your property can’t be possible.
Contact us today
To find out more about buying or selling a home, please get in touch with our Chelmsford estate agents today.
