Decline in buyer interest signals slump for housing market
With an eventful 2016 now entering its third quarter, confidence in the property market is slowly decreasing – and with an unclear future ahead, those looking to sell are finding themselves in an increasingly tenuous position.
As 2016 continues to fuel uncertainty across the housing markets thanks to the stamp duty hike and the Brexit vote, the Royal Institution of Chartered Surveyors (RICS) has postulated a forthcoming slump across the nation for the summer and possibly the end of the year. According to newly released figures by RICS, buyer inquiries had fallen for the third month running in June, and with the Brexit vote acting as a catalyst, property buying experts are expecting sales to decline further over the remainder of the summer.
The fall in sales that many believe will eventually lead to another recession has been exacerbated by the declining number of properties being placed on the market by vendors, who are waiting to see whether or not Article 50 will be triggered anytime soon, and whether this will have any further negative effects on the housing market.
The new figures paint a grim picture for those looking to sell their homes fast, as potential homeowners are avoiding a purchase in case they fall into negative equity due to a further fall in value, while those who do manage to sell are looking at a greatly reduced asking price to realistically entice buyers. Of course, to many within the industry, this comes as no surprise:
“Big events such as elections typically do unsettle markets so it is no surprise that the EU referendum has been associated with a downturn in activity,” said Simon Rubinsohn, chief economist for RICS.
Unfortunately, it is not just sellers and buyers who are being cautious, as the UK’s largest housebuilder Barratt Developments has also publicly announced that contingency plans are being made for potential drops in prices, and further financial risk assessments have been brought into force for land meant for new-build homes. While lending figures are still relatively high versus 2015, the Council of Mortgage Lenders (CML) still believe that the property industry is going to remain in a state of uncertainty for time to come.
“Lenders will continue to be open for business as usual, but lending volumes may be affected by uncertain consumer sentiment,” said CML’s director general, Paul Smee.
However, those who need to sell urgently can always use house-buying companies, who purchase any home for cash at generous prices.
Are you worried you’re going not going to sell your home? Why not ask National Homebuyers for advice, as we buy any house. Call 08000 443 911 or request a call back to find out how much you could get for your property.