- The UK property market has been a topic of much discussion and speculation in recent months. While some experts predict a significant fall in sales and values, others argue that demand in certain areas remains strong, and the market is likely to remain stable.
- One of the main factors that is likely to affect the property sales market in the UK is economic conditions which may also be causing some buyers to adopt a wait-and-see approach.
- However, there are also signs of strength in certain areas of the market. For example, demand for properties in rural and coastal areas has remained high, as people are looking for more space and a change of lifestyle in response to the pandemic. Additionally, many people have chosen to move out of urban areas to avoid the strict lock downs and COVID-19 rules, causing high demand in rural areas.
- According to Tim Bannister, director of property science at Rightmove, sellers should remain realistic: “The early-bird sellers who are already on the market and have priced correctly are likely to reap the benefits of the bounce in buyer activity, while over-valuing sellers may get caught out as property stock builds over the next few weeks and months, and they experience more competition from other better-priced sellers in their area.”
- Mr Bannister added that, for the vast majority of sellers, a drop in asking price is not an actual loss compared to what they paid for their home – only a failure to live up to aspirations. He advised: “Listening to your estate agent’s advice about your hyper-local market and pricing right the first time can avoid a stale sale and the need for even greater reductions later.”
- Rightmove reported that six of the nine UK regions saw asking price rises in January 2023 compared to last month – Wales, North West, East Midlands, West Midlands, London and South East. Of these, East Midlands saw the greatest jump in average asking prices of 1.8%.
- Rightmove reported that average asking prices in every region were higher than in January 2022. Across all the regions, average asking prices were up by 6.5% compared to last January.
- The recent rise in interest rates and the cost-of-living crisis is creating an environment where sales could slow in some parts. The number of available homes for sale is still well below long-term norms. Rightmove says it expects the full effect of affordability constraints and last year’s mortgage rate rises to hold back some segments of the market in the first half of the year. This can put pressure on property prices, causing them to decrease or remain flat. Additionally, if demand falls, it can also lead to a decrease in sales, as fewer buyers are willing or able to purchase property. This can have a knock-on effect on the construction and development industry, causing a fall in new builds, this can change the economic sustainability and development of different regions.
- However, it’s important to note that the impact of rising interest rates and cost of living on the property market will vary depending on the specific region and the stage of the market cycle. The overall trend may not be the same across all areas, some areas may still be robust even with the rise of these factors while others may not.
- In conclusion, while the UK property market may face some challenges in the coming months, it is important to remember that the market is complex and made up of many different regions and sectors. In some areas, demand for property remains strong, and the market is likely to remain stable. “Listening to your estate agent’s advice about your hyper-local market and pricing right the first time can avoid a stale sale and the need for even greater reductions later.”
Please contact our sales team so we can give you our expert advice on the local market and a valuation of your property.
Tel 01772 456558
15 Barnes Wallis Way, Buckshaw Village, Chorley, PR7 7JA