Market Update August 2016

30th July 2016  |  12:00am

Market Update August 2016

As we enter the prime holiday season it is clear that the post Brexit market is one in which success in both sales and lettings is reliant on sensible pricing. Pricing that makes a property stand out from the crowd and attract genuine interest.

Markets are built on confidence and an increase in uncertainty following the referendum vote is having a dampening effect on a market that otherwise remains generally in good health.

We are in a period of adjustment with some reticence now being shown by those who do not need to take decisions today.  There remain, however, people who are motivated to commit to moving home and, if they are in a strong unencumbered position, are better able to negotiate favourable prices whether buying or renting.  

With the Bank of England base rate reduction, the availability of incredibly low priced fixed rate mortgage finance makes borrowing attractive, although returns for savers are now almost non-existent.

A post Brexit Government survey showed that 72% of people wanted to own their own home over the next two years and so the underlying medium and longer term prospects for the market remain good.

The overall shortage of supply vs demand means we are unlikely to see a major or lasting drop in house prices but some correction of an overheated market is occurring, accelerated by the rhetoric surrounding the Brexit decision.

Transactional volumes have reduced with Land Registry figures showing a reduction in sales in 2016 over 2015.

The prognosis in the coming weeks is for a market that will see sellers and buyers, landlords and tenants rapidly come to terms with new conditions and where good quality transactions will still take place.

Good, professional and experienced advice will be key and our team shall be pleased to provide you with assistance tailored to maximise success based on your circumstances and specific needs.