We’ve had some significant hurdles thrown at us this year, and the country is feeling the squeeze of all the decisions made to keep the UK afloat. For some homeowners, that squeeze may be more wearing than others, and they may ask themselves if it is time to sell and move on to something more affordable.
To understand whether the market is suitable for you to sell your house, you need to consider why you want to sell and if the market conditions are ideal for your scenario. The most common reasons why people feel the need to sell are as follows:
- Financial difficulties – People want to release some home equity to tackle squeezing economic challenges.
- Tackle repossession – If you cannot pay your mortgage or secured loan, then selling your home now may be a way to halt repossession.
- Inherited properties – Rising energy bills are causing many people with inherited second or first homes to sell as they struggle to keep up with bills.
- Family breakups – Property asset splits due to divorce can drive a house sale, often wanting to get the process over and done as fast as possible.
- Empty nests – When the children have all left home, living in an open house can seem daunting, so many people tend to sell to downsize. It’s a great way to keep on top of utility bills.
Time is of the essence for many people in these scenarios, and with the current media warning of a house price crash, it might seem like the worst possible time to sell. Below, we have provided a balanced outlook on the current market and possible predictions for the New Year:
- Over the last two years, we have felt a quarter rise in house prices, and first-time buyers have been finding it harder and harder to move into their first home.
But, there may be some hope for first-time buyers as house prices have begun to slow, with year-on-year growth heading towards zero, with Nationwide warning of a subdued market into the New Year. It fell a further 1.4% in November after a drop in October — the most significant monthly decline since the financial crisis in February 2009.
This is timed with the fact that some homeowners cannot keep up with high-interest rates, higher fixed-price mortgages, and unaffordable monthly payments, which means some homeowners will sell before they are ready, which will drive down the price of many homes, making the first-time buyer market much more affordable.
On the other hand, the fall in house prices will delay some sellers from placing their properties on the open market due to the lack of money they will receive from the sale. Most homeowners will remain wary of ending up in negative equity, where they have borrowed more money than the current value of their home. About a third of household wealth is tied to property value, so when house prices fall, it might distress many people as they feel less financially stable.
The government has also announced that they will discuss the UK’s most significant banking reforms in more than 30 years on Friday. The package is said to turbocharge growth and cut red tape as an example of post-Brexit freedom — tailored to the UK’s economic strengths and needs. Part of the banking reforms is said to allow insurance companies to invest in long-term assets such as housing to boost investments.
We asked the editors of Property Press Online for their thoughts on whether this market is suited to property sellers.
They said “Despite the uncertainty of the current property market, house prices are still 1.4% above this time last year. There are key indicators that the market will continue to stabilise like the government banking reforms. Due to the nature of current media outlets suggesting that a house price crash is imminent, first-time buyers will be getting excited about the current market – and you may find it easier to receive offers on your home because of this.”
“But, it will all boil down to why you are selling. If you are thinking about selling due to financial difficulties, repossessions, probate, divorce or downsizing and need to sell fast, there are cash-buying companies out there that will buy your property no matter the current market climate. If you want to sell your home, and have the time to wait to sell it on the open market, there are also many online or traditional estate agents that will be able to help you sell on a quick-time basis but still bring you a return on your original investment (maybe more).”
And, that’s all folks! If you want to contact us about anything covered in this article please get in touch.
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Tom is a Digital Content Writer passionate about sustainable property & property trends. Regardless of the subject, he will always write blogs of the best calibre. Read more about Tom here.
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