Autumn brings with it dark nights, falling leaves and ushers in hibernation for many in the animal kingdom. As much as a nice long rest sounds like a great idea the practicalities mean that we have to get up, get out and keep working (most of us anyway).
Hibernation is probably too strong a word for where we find ourselves in the property market but there has certainly been a noticeable slowing of activity over the last few weeks. The market definitely hasn’t gone to sleep but with a Budget on the horizon people are starting to be a little more wary of what is to come.
With recent experiences of Budget fallout fresh in the memory and the suggestion of potential property tax changes in the air then people are obviously looking to wait and see if these changes are announced and how it may affect the market in general.
There has been a range of potential property tax changes voiced ranging from stamp duty reform and capital gains tax on main residences to reforms on council tax. The opposition government have even suggested scrapping stamp duty all together should they return to power! Where they then replace this lost income from is anyone’s guess.
Many property commentators are suggesting a period of hesitation and this is back by projections from the RICS (Royal Institute of Chartered Surveyors) that the market will continue to be sluggish until the New Year. This is something we experienced last year with the Budget leading into the traditional Christmas lull and then an upswing in activity two weeks into January.
What we can say is that the market will not just stop. People are still out there buying and the right property will always generate interest and a sale. Agents and sellers alike need to be realistic but understand that this doesn’t mean price drops or selling for less than market value. Make sure you are guided by a local expert and come and speak to us at Poole Townsend. For now let’s see what the Budget has in store for us all and hope hibernation is not the only option.