With the annual rate of house price growth currently at a four-year high, experts suggest now is the time to sell.
Here a property expert explains why would-be sellers should be acting now as a result of the latest reports. Getting properties on the market now is key – whilst prices are strong, demand is high and there’s still time for completion before the stamp duty holiday ends.
‘Nationwide’s September House Price Index reports gathering momentum in the housing market,’ explains Mike Scott, Chief Analyst at Yopa. ‘With average house prices increasing by 0.9 per cent for the month, and the annual rate of growth rising to 5 per cent – the highest for four years.’
‘Part of the reason it’s so busy is that the market is still playing catch-up after being delayed by Brexit uncertainty, a General Election and then lockdown. With buyers and sellers looking to push through sales they were forced to put on hold in the spring, which is typically the busiest season for the housing market’ Mike explains.
Offering an insight into the market Mike says, ‘Much of the demand is coming from new buyers. Who may have brought forward plans to buy in a bid to cash in on the stamp duty cut announced by the chancellor in July’.
‘The question remains, however, whether this demand will dry up once the holiday draws to a close in March next year’ he says. ‘At Yopa, we anticipate a short-term slowdown in market activity as the stamp duty holiday nears its end. Though this is unlikely to have an immediate impact on prices. However, it may make it slower and more difficult to sell, with buyer demand drying up.
‘A new Covid-19 surge and a long second lockdown that closes the property market again cannot be ruled out. This of course would put a spanner in the works, as would serious economic disruption caused by the end of the Brexit transition on 1 January 2021’ Mike stresses. ‘Either of these would lead to an immediate and drastic slowdown in the market
‘Taking everything into account, we can expect a rocky start to 2021’ Mike warns. ‘So, if you’re thinking of selling, you should act now to get your property on the market while it’s strong and active. Both to ensure that you achieve the best possible price and to allow enough time for your sale and any onward purchase to complete before the end of the stamp duty holiday in March.’
List your home now to avoid missing out.