Why the New Year is the perfect time to buy and sell property
Traditionally, the property market experiences a spring time rush every year as this is typically the time when British people look to move house. In 2015, however, here at Mishon Mackay we believe there are reasons to believe that the usual burst of spring activity is set to take place a few months earlier.
So, if you are considering buying or selling a property this year, January and February look like the perfect months to take advantage of a lively and ever-changing market.
With the next general election on its way in May 2015, many people will be looking to buy or sell before the uncertainty and unpredictability hits. An election run-up historically introduces jitters and doubt in some corners of the market as people hold off buying and selling until they know who will be in power and how it will affect their purchase or sale. Election fever typically hits around March-April time, so plenty of people will be seeking to get business done and dusted before the chaos begins.
Furthermore, as part of his Autumn Statement in early December, Chancellor George Osborne revealed his reforms to stamp duty after 300 years of the controversial slab tax. The new rates, which will benefit 98% of homebuyers, have helped to re-energise the UK’s property market, with both buyers and sellers more positive about achieving good deals. Sellers, in particular, will witness the advantages of the new stamp duty rates as they won’t have to lower asking prices around stamp duty bands anymore.
As well as the upcoming election and the changes in stamp duty, another thing that might convince buyers and sellers to act early in 2015 is the possibility of interest rates rising at some point in the next twelve months. There is currently no date set in stone, but the Governor of the Bank of England, Mark Carney, has dropped a number of hints that they will increase in the near future, probably in the second half of 2015.
It may come as a surprise, but the early months of the New Year are often very active for the property market, as people look to make a new start and try to get over the so-called January blues. Property portal Rightmove recently released its traffic figures for the festive period and New Year period in 2013, with 1.3 million people visiting the property portal on Boxing Day, as well as 500,000 on Christmas Day.
On New Year’s Day the number of visits went up to more than 1.4 million. This had risen to 2.2 million by the time people had gone back for their first day of work in January – interesting reading indeed.
Such statistics should encourage sellers to market their property early as the exposure to potential buyers at this time of year is clearly very high. Delaying could be very costly, especially considering the mitigating factors previously mentioned.
For any advice on selling your property in Brighton, Hove and the surrounding areas the team at Mishon Mackay would be delighted to help. Please get in touch on: 01273 821 800 or request a free valuation here.