House prices were the source of constant debate and speculation throughout 2014, with huge growth in the first half of the year, and none in the second half. Latest reports from the Royal Institute of Chartered Surveyors (RICs), forecast a 3% growth in 2015 throughout the UK*.
This is the best news I have heard for a long, long time.
What the country needs more than anything, is stability. A stable property market is the only thing which will help consumer confidence, thereby encouraging more movement of property locally as well as nationally.
In a fiercely rising market, potential sellers just hold off from selling. This makes perfect sense; if prices are rising by 1.6% per month as they did in the first half of 2014 (source: zoopla), why not just wait and get more for your home later? Likewise, if prices start to fall, everyone puts their property on the market at the same time, thereby exacerbating the situation and artificially affecting pricing even further, as over supply leads to larger than expected falls. This is exactly what happened in the second half of 2014.
So now, in the first few months of this year, there is a window of opportunity for sellers which we haven’t seen for many years. We finally have some stability in the market. This is due to stamp duty changes, and record low inflation. We also have more motivated buyers than at any time in the last 12 months.
The General Election in May 2015 could mark the end of this window. This will be one of the most open elections in decades. This could mean that for the six months following the election, there will be fewer properties to choose from.
The message to all buyers and sellers is therefore very clear; make the most of favourable market conditions and make your move in early 2015. As a seller, stable house prices mean that you can be confident in the value of your home.
For buyers, you should aim to have secured a property by the end of the second quarter in 2015.
Now is the time to make the most of this market. It might not last for long!
John Munday, Senior Client Manager, Hook
01256 764666 firstname.lastname@example.org