Just as the weather forecasters get it wrong (we never know whether it’s going to rain or shine this summer), so the economic forecasters and property analysts get it wrong as well. Who could have foreseen such buoyancy in the market, and, as we approach the end of the summer, with its very mixed weather, the property market is anything other than mixed. It continues to race ahead with not a cloud in sight, beyond all expectation and certainly beyond the forecasts of even the most optimistic commentators.
According to the Nationwide, annual house price inflation remains above 10% across the board. But we have to be a bit careful here, because these figures, which now put the average house price at over £244,000, have been somewhat skewed by the increase in larger sales this year. For example, according to the Land Registry, the number of transactions involving properties of at least £500,000 was up 37 per cent over the 12 months to March, compared to a rise of just two per cent for all properties.
Interest rates remain at a historic low, despite a temporary spike in inflation, supporting confidence in the property market as we emerge from the pandemic. Transaction volumes rocketed this year as demand outstripped supply.
Nationally, you can usually expect about 50% of all the properties advertised on the portals to actually sell. Today this stands at 67%. Less than 1% of all properties in the UK are available for sale…or publicly at least.
So, our message is that despite the impending withdrawal of the stamp duty relief, the demand for property has continued and we expect this to remain for the foreseeable future. If you are thinking of selling only, you will be in a good position, and if you need to buy as well, don’t worry, we will help you find a suitable property as well as selling yours.
Why not put us to the test? We’d love to hear from you, and you might be pleasantly surprised!
We look forward to helping you.