With so much uncertainty surrounding the UK economy right now, we are often asked by our customers when is the right time to sell a property and take that next step in your life?
The best time to sell a home is affected by many factors - the national economy, the overall property market and your local market.
Here we give you the low-down on the latest property news that may affect the timing of your next home sale.
HOUSE PRICES AND DEMAND
The housing market has witnessed a 'mini-boom' of late, mainly due to the stamp duty holiday, but will the recent pattern of growth continue? How will the market fair in 2021? With the economic uncertainty ahead, and society yet to re-establish itself post pandemic, it is a tricky one to predict as we enter somewhat of a crossroad. Here, we look at what the industry experts are saying:
Even though the market is busy, Zoopla claim the number of new homes listed for sale is currently 14.5% lower than the same period in 2020, with the overall number of homes being marketed down 13.8% on last year. They believe the shift in balance could be down to 2 reasons:
- Many buyers have been ‘holding off’ as they don’t want to host viewings due to risk of Covid infection.
- Those taking their first steps on the property ladder, don’t have a home to sell, and so may exacerbate the lagging ‘supply and demand’ battle the housing market is experiencing.
The imbalance of stock V’s buyers is of national concern, but particularly acute in the North East / North West of England and Wales.
The February price index quotes annual rate of house price growth is at 6.9%, up 0.5% on January, and house prices rose by 0.7% month on month which was a ‘surprise’
to Robert Gardner, Nationwide’s chief economist. Further growth may be seen due to SDLT extension but Gardner states that “if labour market conditions weaken as most analysts expect, it is likely that the housing market will slow in the months ahead”
and as a result ‘the outlook for the housing market is unusually uncertain”.
Savills increased their home price growth in 2021 from a previous forecast of 0% for the year to up 4%. This is based on activity remaining strong due to a more tapered end to the Stamp Duty holiday and a successful reopening of society, saying they expect “a relatively strong start and end to the year sandwiching a more subdued middle.”
House price growth is predicted to settle down mid 2021 once the SDLT ends in June, but available housing stock continues to be a concern and under pressure - supply just can't keep up with demand. So, if you want to sell and move home, now could be the best time as the market is buoyant and currently a hive of activity.
VACCINATIONS AND THE END OF HOME SCHOOLING
With the roadmap out of lockdown announced February 22nd, many believe some of the constraints on supply in the housing market are due to go away. People had been reluctant to have strangers viewing their homes during lockdown and many families were too tied up with the kids being at home to think about moving. With 1/3 of UK adults already vaccinated, more people are ready to start thinking about their future and where and how they want to spend it.
With Rightmove "buyer enquiries rising by 18% compared to last year"
, demand for property is high. People are wanting to move be it for a new job, change of circumstance or for lifestyle reasons. But with demand up and housing stock low, buyers could face tough competition when it comes to landing their dream property.
Spring is traditionally the busiest time in the property market as people use the improving weather to visit potential new homes, as well as wanting to find and complete before the end of the school summer holidays. Add to this, the opening of society and schools, and it points to a good time for a property transaction.
The recent budget announcements, including SDLT extension and availability of 95% mortgages, may now encourage sellers to bring forward their plans to take advantage of the stamp duty savings on offer and aim to get settled in their new home before the summer sets in.
With Rightmove quoting there are over 600,000 property sales waiting to complete, it is sensible to say that making the decision to move should be considered asap, especially if you want to benefit from the stamp duty holiday savings and complete before June 31st
HOW CAN I GET MY HOME SALE MOVING QUICKLY?
If you want to make yourself ‘chain free’ and get ahead of the anticipated competition when trying to find your next home, Spring can help. We can complete on your existing home sale in as little as seven days, avoiding the open market, putting you in a much stronger position when negotiating your onward property move. Sellers are looking for buyers who are in a position and can move quickly as chain free buyers are in high demand.
Our dedicated Property Advisors are on hand to help you make the right decision for your next home sale and guide you through our home buying process.
Spring - Make Your Move