As the Seasons turn, conversation about what is happening with the property market remains ever prevalent, with varied predictions and premonitions being offered from all quarters.
So, what is likely to be ‘over the rainbow’? In the short term, continued hesitancy, but with a distant ray of optimistic light on the horizon.
This year has once again been a year of reflection from buyers due to the ongoing national and international economic and political instabilities. Despite a fine Summer of sustained good weather, interest rates retreating and the completion of the first year since the new Government was appointed, the property market remains cautious and extremely price sensitive.
The days of introducing a property to the market, expecting high volumes of viewings and receiving competing offers over and above the asking guide, are a distant memory. With much more choice on offer to buyers than there has been for many years, the properties that continue to stand out from the crowd are those that are presented in ‘move in’ condition. Interestingly, the demand for properties requiring work, which for many years were the highly sought after best sellers, are also a thing of the past due to the escalation in recent years of labour and material costs.
Another factor causing, in particular, the upper end of the market to stall, is in relation to Stamp Duty levies. Given the significant stamp duty costs payable on property purchases, buyers seeking to trade at the higher end of the market are having to be wholly confident that the property they wish to purchase is absolutely right and meets all of their requirements, as financially, they simply cannot afford to make a mistake. As such, many buyers are holding off making ‘swift’ decisions as they feel that something better and perhaps more suitable might be just around the corner.
With the impending Budget due in November and reports of proposals to change the property tax system, until this position has been clarified and buyers and sellers get an understanding of any impactful changes made, transactions are likely to remain suppressed. Whilst dark clouds remain for the time being, with experience, an understanding of the market and most critically, correctly priced properties, there are motivated buyers who are keen to buy and as an agency, we are achieving some very positive results on behalf of our clients, demonstrating that there are signs of brighter times ahead.
As ever, if you would like any further advice on your property, please contact us and we would be delighted to assist you. Also, do take a look at our current listings.
Richard Trimbee
Senior Associate Sales Director, Petersfield.
