We've all read the headlines about the UK property market falling at the fastest rate since 2009 and whether we're heading for a post-Brexit meltdown. Experts even predict that coronavirus will cause house prices to fall by as much as 10 percent this year ...
Over the last few years supply has not been able to match demand, which pushes prices up. The UK builders appear to be ready to build again, but there are signs of caution with a lot less speculative building. So, although supply is there, it is currently being subdued with a lack of confidence.
However, demand is certainly taking a knock as confidence ebbs away in people's personal financial situation. This is not surprising with businesses unable to trade and 8 million-plus workers on furlough with the threat of redundancy.
I have used the word confidence twice now and that is the key. How do we get it back? I have two top tips for Rishi Sunak, our Chancellor of the Exchequer:
- Suspend stamp duty for the rest of the tax year, not just for the first-time buyer, but for all. When you move house you often get caught up in a chain and we want everyone in that chain to be able to move. That chain could include properties at both ends of the housing market.
- Extend the help to buy scheme. Mortgage companies, because of the threat of prices coming down, are lending less against the property value. To give confidence back to the first time buyer struggling to find that deposit, we can help them out more.
Rebuilding confidence won't be easy. It may take time, but it will come back in my view, so please don't despair. The United Kingdom is, and always has been, resilient and we can certainly ride out the storm.
Zoopla and Rightmove are already reporting a significant upturn of new instructions and viewings so it looks like the UK property market may be turning a corner.
If you feel inspired to find out more about anything I've said here, do call me on 01908 774320 or leave a comment below and I'll be in touch as soon as I can.