So Article 50 has been triggered… we’re about to enter uncharted territory for the property market but what will the repercussions be?
I’m certainly no economist but I do see what’s happening on the ground and buyers’ reactions as it happens.
In short, I think property prices in the South East will hold strong and continue to rise. Will they rise 10/15% a year? Probably not. Will they fall? Probably not. Will they rise 5, 6, 7%?… Probably.
The reason is very simple. The number of people placing their property for sale has already dropped over the past 10 months since the vote. The vote caused uncertainty. Uncertainty causes people to do nothing. That’s why the volume of transactions has dropped almost 30% year on year resulting in prices rising 7% when some people thought the minute we voted to leave prices would tumble. If triggering Article 50 causes more people to sit on their hands, that’s only going to result in EVEN LESS people placing their house for sale resulting in even less supply resulting in the same amount of buyers competing for less properties thus pushing the prices up.
The fundamental facts are that we don’t have enough properties to satisfy the demand. At count, there were 5 buyers for every house on the market… that is huge. Until that balances, prices will continue to rise.
So, if you’re looking to upsize in terms of value, do it now as the longer you leave it the more it will cost you. If you’re looking to downsize, wait as long as you can as you’ll be better off financially.
I hope this helps. If you want to talk anything through, just give the office a call, our team would love to help.
All the best