Welcome to the June 2022 property market comment. (Scroll down to watch Richards video) The…
The pressure for a decisive Brexit result has clearly provided the country with a sigh of relief and a bit of breathing space – finally. Most people now realise that life goes on and whatever the eventual result, if there ever is one, it is probably more likely to affect their political sensitivities more than their actual pocket. This has been borne out by the increase in activity we have experienced over the past few weeks as we find ourselves in a surprisingly “traditional” spring market.
Nevertheless, sellers should remain vigilant. The market is by no means overly buoyant and the Bank of England this month kept its base rate at 0.75% in recognition of their forecast that house prices could fall slightly (1.25%) in the year to Q4. It had previously expected growth of 0.25% per quarter. This projected fall is primarily due to a slight increase of supply in relation to demand and may have already started – the Land Registry reports that prices are already 0.8% down on last month, with the average house price now standing at £226,234.
It is therefore more important than ever that sellers ensure a property for sale is presented beautifully and priced keenly if it is to compete favourably. Buyers are taking their time and looking for perceived bargains, although ultimately, they will pay top dollar when they see good value.
The key is to ensure your property sells fast as buyers are quick to sense an “old chestnut”.
Interestingly, mortgage approvals did however rise in March, according to UK Finance, with approvals up 9.1% on last year. This suggests that the increase in stock earlier in the year rose to meet buyer demand and it is this increase in transaction volumes that has been the missing component in the market for years. Ha! – the market only ever seems to be in perfect balance for about 20 minutes!
So, whilst spring is still in the air, why not consider a move? Your timing could turn out to be perfect. Please feel free to contact us on 01225 707342 for a fast, informal idea of the value of your property today.