The property market has seen UK house prices rise since the start of the pandemic, with no signs of surging sales slowing down. Following the end of furlough and the stamp duty holiday, property experts predicted a decline in sales whilst a demand to move house continued to fuel the market. So, what will the festive period have in store for us?
Speaking exclusively to the Daily Express, our Managing Director, Alex Mackay, shares his predictions for the market in the lead up to Christmas:
“The housing market this year reminds me of the heady days of 1988 when the government ended dual tax relief for first time buyers on property and as a result, agents saw hundreds of extra transactions conducted to get inside the 31st August deadline.
The reality of this was that the market mopped up probably 18 months’ worth of first-time buyer purchasers, and we’re then surprised that the market slumped in ‘89 through ‘90 and ‘91. It was a difficult time for sellers and agents alike.
However, this year has not been quite the same with the Chancellor’s initiative to stimulate the market with his stamp duty holiday, which ended in June. Although the first six months of this year were extraordinary with pretty much every house selling within days of coming to market, and often over the asking price, in reality on the south coast we saw an increase in prices of around 10% across that period.
Now, the drawbridge for new properties going to market has pretty much drawn up. We have seen a significant reduction in homes coming to market but those that have, sell quickly at good prices. I suppose the real question is where the prices go from here as we approach the end of the year and the traditionally quiet Christmas period.
And to be honest, I’m not sure there is going to be much shift in terms of value leading up to the festive period. The market is still strong and if you’re selling your home in November/December, you will sell it and it will be at a good price. The unknown is the effect of increased interest rates, which is imminently looming on the horizon. It’s hard to believe that as the cost of money increases it will not have a negative impact on prices in the market.
To be fair with a local 10% price increase this year we can all probably afford a break. We all know that interest rates have been at an unsustainably low rate, the bank rate currently being 0.1%, so I suspect a new normal is about to look us in the eye.
The property market is always an exciting place to be working in, and it’s never without its challenges and that has always been the same over my career expanding some 40+ years. It’s a merry-go-round. We get used to it. Houses will still sell, and everyone must adapt to market conditions.
Good luck for 2022!”
Please read the full article here: https://www.express.co.uk/life-style/property/1517145/will-house-prices-drop-expert-christmas-evg.