House Selling Prices Demand Market Changes all Impact on Selling Your House
The Financial Times https://www.ft.com/content/94efc3d2-3ba5-4c66-a96e-39440552c670 have just reported on the newly released figures for house prices in August. Astoundingly after a drop in some areas of the United Kingdom and regarding some property brackets, over recent months; house prices rose 2.1 per cent in August indicating that now might be the right time for selling your house for a quick house sale.
We take a look at the latest reports from the industry, look at the trends and requirements all to help you decide when is the right time for selling your house.
The report states that ‘UK house prices recorded their second largest monthly gain in 15 years’ (Romie and Oso Alabi, accessed September 2021). August saw annual house price growth increase to 11 per cent.
The 2.1 per cent figure is in comparison with the previous month from data gained via the Nationwide Building Society https://www.nationwidehousepriceindex.co.uk/reports/annual-house-price-growth-cooled-in-july-but-remained-in-double-digits The Nationwide report finds that the annual growth for house prices was 10.5 per cent in July a reduction in the seventeen year 13.4 per cent high that was recorded for June. They also state that the changes in housing preferences have been the major factor in the increase of activity in the property market.
Low mortgage interest rates together with low investment interest rates see people changing their outlook towards savings and investments. The Financial Times report includes information about mortgage rates. Their article advised that in July new mortgages reached an historic low of 1.83 per cent.
Another factor relevant for many selling a house to buy another is the lifestyle change of homeworking that has driven the UK housing market strength since the beginning of the pandemic. Because people can work from home, visit the office less and the way of working has changed significantly for many people, the change is that more house buyers want a property suitable for a home office. They can also justifiably relocate to somewhere further away from the office. As more people reassess their needs, wants and affordability more people are wanting to move house.
However, the Financial Times report that Nationwide chief economist says the strength may be reflective of a strong demand for houses in the £125,000 to £250,000 bracket with people hoping to fulfil their purchasing requirements before the final stamp duty tax cuts that end on 30th September.
The first time buyer stamp duty threshold remains at over £300,000, which will also see strong demand for properties that fall below that threshold.
August was expected to see the usual downturn in property sales as people selling a house follow the usual delay pattern until after the summer holiday period. Certainly, the slowdown happened in July, but August saw no let up in buyers; leading to a supply and demand mismatch during August.
The Financial Times conclude that the anticipated inflation rise and end of the furlough scheme that was expected to reduce house prices has not happened. They say that rising wages and labour market recovery are factors in the growth.
What This Means When Selling a House
Readers thinking of selling your house would do well to gather as much information as possible, especially regarding the location and the price banding that your house for sale falls into. All of this will help you to decide on the right time to sell your house, especially if you want a quick house sale. Recent reports show different figures for things like average house prices with £333,371 being the figure released a few days ago, while a 1st September report from The Guardian gives the figure at £248,857.
The increase of house prices in August have surprised a lot of experts, with Nationwide advising that they expect the rising trend to continue in the short term, but anticipate a slow down in sales and decrease in prices in the longer term. Time will tell as the market has been impossible for experts to predict in these pandemic times.
What can be certain though is that the exodus from London and other large cities continues. More people are seeking homes that offer work from home space and many consumers are looking at property location in a completely different way to the trends that we expect. The pre-pandemic desirable has become the pandemic undesirable as the trend to move to coast and country continues.
What the pandemic with lockdowns and forced time for reflection for many people has done is create this complete turnaround regarding desirability and driven the housing market as people are no longer prepared to compromise space for convenience in some cases and have discovered their true housing desires that are now with in reach in others. Furthermore, the release from the office bound five day week with long days has enabled people to move further out from the urban office hubs, enabling them to follow their housing dreams.
If you are selling a house and wondering if it’s the right time, check out the latest advice from these organisations to help you decide:
Home Owners Association
The Money Saving Expert
Being ready to move on the purchase remains an important factor with many sellers wanting a quick house sale. If you are buying a house, selling your house and being chain free is a massive advantage to buying right in today’s market, especially if you are moving to one of the trending areas. If you want a quick house sale to facilitate your move, check out our options here.
Romie V and Oso Alabi L (2021), ‘UK house prices increase sharply in August’, The Financial Times. www.ft.com/content/94efc3d2-3ba5-4c66-a96e-39440552c670
Information also from Nationwide with no direct quotes. https://www.nationwidehousepriceindex.co.uk/reports/annual-house-price-growth-cooled-in-july-but-remained-in-double-digits