Brexit has undoubtedly had an impact on the property market, but what many of our clients are now asking is will this affect their sale or rental prices now and how long will the affect last for.
I shall provide my view and of course provide the current stats to illustrate the point. In brief I believe the market will now bounce back after a slow couple of months in the lead up to a Brexit decision. The period of extended uncertainty caused many to hold of buy and selling property. But now we are all on hold again until Halloween I believe the activity levels will rapidly return to normal.
Rightmove data shows:
- Price are down 0.1% from this time last year but increased by 1.1% (up by £3,447) in April, this is the largest increase in a month since 2016.
- The best performing sector is the family home sector. This we expect is due to the need to get children into schools outweighing any uncertainty in the market.
- Family homes are holding their prices better than other sectors, with a 0.7% annual increase, while other sectors average 0.1%.
- The overall number of properties coming to the market is down by 1.2% compared to last year.
We have seen many rather frustrated buyers looking for a suitable home, struggling with little choice. We hope that this delay will increase confidence and allow more vendors to list their homes to fulfill this demand.
As a vendor the main thing we wish to make you aware of is the fact that with the shortage of stock on the market agents are mispricing properties purely to win the business. An investigation by the Times this month found that ‘major estate agency chains were overvaluing properties by up to a fifth – then cutting significantly to achieve a sale – in a practice that can mislead sellers into paying higher rates of commission’.