THE BIG HOUSING GAMBLE
With prices tipped to fall significantly, renting between selling and buying could be a wise move
SHOUld you bide your time and rent between selling and buying? It’s a brave tactic that depends on house prices falling at the right time to be worthwhile. But it could be a wise move to sell now, before a further dip in prices, then rent for six months before buying — and hopefully getting more house for your money.
There are no certainties in this strategy, but many experts say it could work, and this is why: yesterday, Chris Rhodes, chief finance officer at nationwide, warned that house prices could fall by up to 30 per cent in a worst case scenario. In this case, a house worth £500,000 today could drop in price by a whopping £150,000.
Credit Suisse bank is slightly more optimistic, warning that if interest rates continue to rise, house prices could tumble by 15 per cent.
Selling your property first puts you in a stronger position as a buyer — you are not in a chain so are more attractive to the seller of your next home — and it means you won’t be hassled into selling in a panic for a lower price than you want because you have an offer pending on a new home.
In addition, if you’re relocating, you’ll want to find out which are the best streets in the new area, and renting gives you time to do your homework. But it is no longer a cheap option and its cost will vary depending on property size and location.
The latest data from Rightmove shows the average rent outside london has risen to a record £1,162 per month, while in the capital it is typically £2,343 a month. Over six months that would cost you £7,000, or £14,000 in london. The figures could work in the favour of a canny buyer — but the process is not for the faint-hearted.
If you have children at school or pets, renting can be complicated with a reduced number of properties available. And remember you have to be willing to move house twice, possibly putting furniture in storage if your rental home is smaller than the house you intend to buy. Comparison service reallymoving.com says the average house removal now costs £649 — and you’ll have to double that to cover the move into the rental and then into your new home.
When it comes to storage, a house with three or four bedrooms typically requires 120 sq ft of space at an estimated cost of £ 12 per square foot for six months, according to the Self Storage Association UK — so that’s £1,440 in total.
Estate agent Grant Bates, from Hamptons, suggests the strategy is likely to work best if you are buying in cash or need only a small mortgage.
‘If you’re planning on getting a larger mortgage, it’s likely that increased rates and rental outlay will swallow up any margin,’ he says.
And anyone who decides to take the plunge must accept that it’s impossible to guarantee what house prices will do. In 2020, when the country was gripped by Covid, few would have anticipated a 20 per cent rise in average house prices over the following two years. And, likewise, despite double-digit inflation and a cost of living crisis, there’s no guarantee that there will be a house price drop, even after the turmoil of recent weeks.
James Greenwood, of Stacks Property Search, a buying agency, says: ‘It’s a big gamble to play the market with your largest financial asset and the place that you live. Our advice would be to protect your capital rather than gamble it. The best way to hedge against movements in the market is to sell and buy within the same political and economic cycle.’
There is also the impact of inflation, currently running at around 10 per cent. That means £500,000 kept in the bank after the sale of a property could be worth only the equivalent of £475,000 after six months, if inflation remained unchanged.
We’re going to need as much cheer as possible in our homes this winter. Prices are rising, dark days are looming and there’s no easy salvation lurking on the horizon.
one way to brighten things up is with a beautiful chandelier — and they need not burn too much electricity if fitted with energy-efficient LeD lightbulbs.
these classical pieces are making something of a comeback.
‘I’ve noticed more young people taking an interest in these timeless beauties,’ says London antique dealer, Matthew Upham.
And such is their variety that you can find an example to suit almost any interior, whether you want to add a touch of a regency grandeur or edwardian swagger.
Check out pictures of expensively renovated London townhouses on the market and you’re bound to see a glittering chandelier hanging in the drawing room. And what a choice there is.
At the influential Decorex interior design show in London this month, the chandeliers from UK firms Kansa and the Soho Lighting Company highlighted the new passion for more ornate lighting, evoking the grand days of the past. the 1960s Space Age and disco era of the 1970s were also represented.
turn on a chandelier and you’re tuning into history. ‘the romans used oil to light their chandeliers. And in early Byzantine times, the churches of Constantinople were adorned with vast oil-lit chandeliers,’ says Upham. over the next centuries, the fuel sources evolved, with candles being used — from which the chandelier gets its name. Chandelier, a word borrowed from the french, is derived from candela, the Latin for candle.
In the 19th century, oil and candles were replaced by gas and then electricity. today, antique chandeliers are routinely adapted to 21stcentury requirements.
Upham’s interest in chandeliers began at the age of eight when, in his mother’s antique shop, he dismantled a chandelier bought from a stately home sale. ‘You never learn about anything until you take it apart,’ he says.
Upham has had shops in Chelsea and fulham for years, but from January will be selling only from his website ( matthewupham. com) and is offering all his stock at half price.
But he maintains that a return to popularity of the chandelier is based on a move away from the throwaway and a new willingness to embrace second-hand items with the glorious patina of the past.
Some pieces, such as those from Baccarat, the Paris-based manufacturer and star of the 19th-century chandelier makers, are complex combinations of glass and gilt-bronze or ‘ ormolu’.
the Marie-therese chandeliers, which were first made in mid-18th century Austria, are draped with swags of glass like rows of necklaces. Later pieces, such as the Art Deco examples, appear more restrained.
Upham is passionate about his dazzling merchandise. But he also regards the chandelier as functional, providing maximum light and impact.
A chandelier traditionally is seen as a great way to draw attention to a lofty ceiling; the higher the ceiling, the longer your chandelier can be.
Although we may associate chandeliers with stately homes, they can make even tiny rooms appear larger, since, as Martin Waller, chief executive of the Andrew Martin furniture and furnishings group explains, a sparkly show-stopping piece will draw the eyes upwards.
A Marie-therese chandelier is a maximalist piece, with its curved arms in a bronze, gold or silver finish and chains of faceted glass that refract the light. this wow factor explains its appeal among younger generations who are weary of stripped-down Scandi-chic. John Lewis has a five- arm Marie-therese style for £599 ( johnlewis. com). Wilko has a black version for £50, a low- cost way to move away from minimalism ( wilko.com). Matthew Upham has an early 20thcentury offering, with extra sparkle for £3,800. And the Apiales 18 modern chandelier designed for Nuura by Sofie refer would be a delightful central feature (£3,819, nest.co.uk).
Pick the right chandelier and it will always look expensive, and there is something for every budget. for example, if you want to add a flavour of the Parisian bistro to your dining area, you can find an example in the early 19th-century teardrop french empire style for £40, now £26.68, at Argos ( argos.co.uk). Pooky lighting has a £450 version ( pooky.com). So, let the chandelier revolution continue — but just make sure you call in a professional to do the hanging.