Experts wonder if UK house prices have reached their limit
With the stamp duty rise past, and the looming Brexit vote ahead, the property industry is speculating about a drop in value for housing across the UK, as potential buyers hold back on purchasing a home.
“The houses are there, but no one is buying” – that’s the growing consensus amongst UK property selling experts across the country. With growing concern over possible consequences stemming from a potential exit from the European Union, and the ever increasing prices of homes, UK homebuyers are staying away from the market, leading to a 46% reduction in property registrations in a single month.
With the average home now costing nine times the average wage, many within the industry believe the market is overdue for an implosion, and as a result, vendors will have to be more realistic with their asking prices in order to achieve a fast house sale. Despite a strong start to the year as buyers scrambled to complete on purchases before the stamp duty rise took effect in March – the market has since begun to stagnate.
While there are those who believe the current threats may be short lived, the drop from 173,430 nationwide sales in March to just 70,690 in April has left many in fear that the country may face another recession.
Experts believe that with the reduction in demand, it is highly likely that house prices will fail to maintain the 12% year-on-year growth in value, placing both sellers and estate agents at a distinct disadvantage.
“We believe the nation has now neared the limit in terms of price rises,” said Paul Smith, owner of Haart, Felicity J Lord, Spicer McColl and Darlows estate agency chains.
“Our data is already showing a slowdown in both house price growth and transaction levels. In order to maintain healthy sales levels, sellers need to be much more realistic with their asking prices – properties are in danger of being overvalued and these homes will struggle to sell.”
While this is great news for those who are in a position to buy, especially first-time buyers, those hoping to sell are being warned to reduce their expectations in terms of profit. Luckily there are options for those who are looking for a speedy sale including property buying companies who are happy to purchase any home, regardless of condition or situation with competitive prices and highly rated customer service.
Are you worried your house is not getting enough viewings? 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