What Will Happen to House Prices?
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Here at UK Property Cash Buyers, property is not just our profession but our passion, so we take a real interest in keeping up with what’s happening with the housing market. Determined to only ever approach our clients with fair prices for their homes when we buy any house, we want to make certain that the amount you’re offered is in line with what you would get elsewhere. Here is our take on what will happen to house prices:
Our Take on the Property Market and How We Can Help
Unfortunately, average house prices in the current property market are looking less than healthy. With Brexit continuing to make itself felt, and unresolved divisions left over from the last general election, the country and its leadership appear to have no clear direction, making it almost impossible to predict what will happen to house prices in the months to come, even for the experts. This has led to the age old problem of uncertainty – arguably, the very worst enemy of both interest rates and UK house price growth. This does not just affect the country on a theoretical level, but in real terms too.
One effect of this is that it makes homeowners reluctant to sell and property buyers less willing to part with their cash as it becomes harder and harder to calculate not only what houses and flats are actually worth, but also how their worth will change in the months to come – for better or for worse. Everyone thus holds out in an attempt to get the most favourable prices they can: in the case of sellers, the highest value, and in the case of purchasers, the lowest price tags.
For most, this is inconvenient, but no more than that. Lots of people have the luxury of remaining where they are to wait out the storm, but not everyone is so fortunate. There are those, and you may be amongst them, who have no choice but to sell, and in such instances, a slow property market and the assistance of a traditional estate agent simply isn’t an option.
The reasons for needing to sell so badly can be myriad: perhaps you’re suffering from financial difficulties and can no longer keep up to your mortgage payments; perhaps you’re moving abroad and need capital to fund this. Irrespective of your reasoning, you need an alternative to help you combat the issues caused by the continuing Brexit negotiations and the ever present aftermath of the financial crisis.
Here at UK Property Cash Buyers, it’s fair to say that we might just be it, but more on that later. First, let’s take a realistic look at what will happen to house prices and the effect this is likely to have on individuals such as yourself…
What will happen to house prices?
In recent months, house price growth in Britain has been less than impressive, a trend that continued throughout November, when property prices once again slipped. In direct contradiction to the commonly held belief that property is one of the most stable investments around, this period saw an increase of just 2.5 percent – a steep drop from the 4.3 percent recorded at the beginning of the year.
Luckily for property owners, there are some factors in existence that are helping to offset the effect of this. Low mortgage rates, limited housing stock, and employment growth are counterbalancing some of the potential issues associated with stagnation, but even the three of them together cannot protect the market entirely. Nor is the abolition of stamp duty for first-time buyers likely to be of much help, with many of those this will affect already buying properties which fall below the existing £125,000 threshold. With the exception of those who live in areas with higher house prices, such as London and the South East, the impact of such an edict is likely to be limited for most.
In fact, though it may not sound like it, a drop in prices could actually be more beneficial to alleviating the stalemate the property market finds itself in, and this newest measure will do little to foster that. According to the experts, releasing first-time buyers from stamp duty will likely boost house values at the bottom end of the market, compounding the problem that already exists in this niche: that many potential purchasers are priced out of the market and cannot afford to buy. As professional Jonathan Hopper explains: “The property market is sliding further into the deep freeze, with average prices increasing at a glacial pace. Demand remains robust so it’s premature to talk of the market seizing up, but it’s far from healthy.”
What Will Happen to House Prices in the Future?
“Looking ahead into 2018, it’s likely we’ll see much of the same. Limited supply will nudge up average prices nationwide, but with falling real wages eating into what buyers can afford, it’s sellers who are willing to be pragmatic on pricing who are most likely to achieve a sale.” For those who wish to achieve a quick and successful sale, this last sentence is something to take note of: purchasers do not have the budget to buy at current market value, which means that if you want to sell at all, you may need to lower your expectations.
With this in mind, companies like ours certainly begin to seem like a viable alternative to traditional estate agents. Offering a little less than market price, we can nonetheless secure you the sale you need with none of the overheads you would usually have to pay, so that in the long-run, you’re not really losing any money at all. For the property market, it’s a catch 22: the higher prices go, the fewer potential purchasers there are to buy them; the lower they fall, the less willing homeowners are to let them go at a reduced value; when they stagnate, everyone waits to see what will happen to house prices. If you’re in need of a quick sale, this is arguably the stuff of nightmares, unless you can find a better way to sell…
Why now is the perfect time for services like ours to shine
As we explained above, the effect of stagnating property prices is to cause a market slowdown. Although we are far short of a full-on house price crash, more and more purchasers are hesitating to buy, and if you need to sell quickly, this is a real spanner in the works. Especially considering that many of the same factors contributing to the freeze in house prices are also causing a reduction in disposable income for many. Wage growth simply cannot match spiralling living costs, and this means that lots of individuals find themselves either in real need of a quick sale to release funds, or unable to perform the repair work required in order to make their house saleable through traditional channels.
Companies like our own offer a useful alternative. Willing to buy any property, no matter its condition or your circumstances, we can offer you an immediate and guaranteed sale, so that you can have full faith in releasing the capital you require. Rather than needing to rely on the whims of the property market, you will be able to know with certainty that when you approach us, a transaction is immediate – one that is enacted by purchasers who will not waste your time nor change their minds at the last minute.
Slightly biased we may be, but to us, it seems clear that this is the perfect foil: as the market slows, and people are unsure of what will happen to house prices, and those who are not already on the property ladder are priced out of buying entirely, we offer the only type of sale that you can really count on – one where those thinking of buying a home like yours are already lined up and pre-approved by us. That’s what our business ethos is all about: helping individuals who find themselves in a position where they cannot help themselves. Despite the lack of direction Prime Minister Theresa May has been accused of, the struggles of the Bank of England, the Brexit vote, the uncertainty over what will happen to house prices, the abolition of stamp duty, and the many other issues affecting our economy and our country as a whole, what we offer is certain, uncomplicated, and an easy answer to your problems.
To learn more about our services and how we could assist you in selling your home, get in touch with our team today. We’re always happy to help with any questions or queries you might have.