Sales activity holds up well amid post-election uncertainty
- 17th July 2017
- Selling Property News
Property market shows resilience as demand outstrips supply in most affordable price brackets
The recent General Election may not quite have delivered the clear result many were anticipating for but the property market, at least, appears largely unperturbed by the outcome.
Though the political outlook now looks somewhat harder to gauge, some estate agents [- ourselves included -] are reporting no significant change in sales activity levels in the weeks immediately following the vote.
There could be several reasons for this. One is that long-term supply and demand imbalances remain. Housebuilding – particularly at the sub-£500,000 end of the spectrum – appears to be failing to keep pace with requirements.
A recent Financial Times article quoted figures predicting that less than a third of the homes required in London in the cheapest price bracket will be built over the next five years, creating a risk of continued undersupply. Househunters will have to be quick to get ahead of the competition for some time to come.
Further up the property ladder transaction activity in the £500,000 to £1 million band is likely to remain resilient because buyers of properties in this price bracket tend to be selling property bought a few years ago, in which they have built up substantial equity facilitating an increased deposit on their next purchase.
These purchasers have established jobs often with joint incomes and as such are highly attractive to lenders who are increasingly competing with appealing interest rates for mortgage applicants with this kind of profile, keeping the market buoyant. They are also among the most decisive buyers around, in turn, making transaction turnaround times quicker.
Stephen Ludlow, Chairman at ludlowthompson, comments: “Prospective purchasers are likely to continue taking a long-term view when it comes to making a decision.”
“Beyond the General Election, many people still see property as a sound investment for their future. Prices may become more considered, but there will still be deals to be done.”
“Beyond the General Election, many people still see property as a sound investment for their future