Is now a smart time to sell your property?
- 8th December 2009
- Selling Property News
After 6 months of growth in the property market and an impending increase in VAT, is now a good time to sell?
Predictions published by Jones Lang LaSalle, global real estate services, show residential property prices are likely to decline an average of 7% next year.
Property in London and the southeast of England increased by an average of 5% so far this year, with most of this upward trend happening in the latter half of the year. Whilst this may have helped prices recover slightly since the fall out in late 2008 this productive trend is said to be unlikely to continue beyond Christmas.
LaSalle highlights January's expected rise in VAT as one of the main factors behind their negative forecasts. A further issue they point out is the predicted rise in unemployment in 2010.
Another factor they consider is the impending UK general elections occurring in May, and possibly the first change in government for 12 years. Jones Lang LaSalle asserts that any level of uncertainty would negatively impact the market, the government’s inability to continue stimulating the economy could prove costly.
LaSalle forecasts that deterioration in residential property sales is likely to last for 12 to 18 months as supply of properties increases and potential buyers decrease.
ludlowthompson, london estate agency, recently published their own property market report on the fourth quarter of 2009. with video broadcast. According to Stephen Ludlow, low demand has pushed up prices and the recovery is being driven by low interest rates. First-time buyers are more active than the middle-market which is suffering most from inertia.
Stephen Ludlow comments: "Parents buying large family houses are now much more cautious than first time buyers, especially if they’ve got young children or expensive school fees."
Parents buying large family houses are now much more cautious than first time buyers, especially if they’ve got young children or expensive school fees.
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