Competition increases for UK property sellers as landlords flood the market
In an effort to avoid the forthcoming increase in stamp duty, landlords are collectively unburdening their portfolios from small homes – and the huge influx is likely to drive down prices.
Those looking to sell their homes in early 2016 are facing increased competition as landlords are due to saturate the market looking for a quick house sale before April to avoid the 3% surcharge.
Recent figures released by Rightmove show a 6.6% increase in the number of smaller two and three-bed homes since the new year, and this trend is due to continue towards the impending deadline. This is bad news for private sellers as the increased struggle is set to force them to lower their expected asking price in order to complete a sale. Sadly, this also means that there will be significantly fewer buy-to-let buyers looking for properties to purchase, which could lead to stagnation within the market.
The knock-on effects from the new legislation have led to a limited increase in average house prices from December 2015 of 0.1%, with many experts within the industry pointing towards a possible drop in value for many homes around the UK – forcing many of those looking to sell into a position of negative equity.
So what does this mean for the average UK homeowner looking to sell? With an increase in competition and the diminishing hopes of receiving their asking price, many are looking for alternative avenues to get the most out of their house sale.
“We’re seeing a number of investor-to-investor sales with an urgency to achieve completion on deals before 31 March,” said David Blythman, managing director of estate agent Scottfraser.
“Any potential sellers considering coming to market to take advantage of selling to an investor would need to move fast so they have the chance to complete before the end of March.”
Luckily there are UK house buying experts available to help those looking to avoid the impending market downturn including a number of property buying companies. But for those planning to sell closer to April through their local estate agent, the competition may limit their chances of making a profit.
If you’d like to sell your house quickly, ask National Homebuyers for advice, as we are expert UK property buyers Call 08000 443 911 or request a call back to find out how much you could get for your property.