This is a question that homeowners will increasingly be asking themselves in 2019 whilst the United Kingdom gets ready to leave the European Union.
If a property will not sell, there will be a reason for this.
Typically, it is down to the following factors:
- Poor marketing
- Property does not show well on viewings
- Property is too highly priced compared to other similar properties in the same location
- Over-supply of properties being sold in the area.
- Unpopular location or micro factors which could affect the saleability
However, as we exit 2018 and head into 2019, there will be an additional reason, and that is economic uncertainty over Brexit, and for this there is no certainty for home sellers that things are likely to improve any time soon.
Brexit has caused many people to put their moving plans on hold as they are uncertain about the economic future of the UK and the property market.
The Governor of the Bank of England, Mark Carney, forecasted a 30% drop in prices in the event of a “no deal” which will not have helped with consumer confidence. Furthermore, the media is full of stories about how the property market has gone into stagnation and even decline.
According to the Land Registry, annual house price growth has hit its lowest level for more than five years.
Its House Price Index for October has revealed annual growth was at 2.7%, the lowest rate since July 2013.
The annual figure is down from 3% the previous month, and put the average property price at £231,095.
Prices on a monthly basis were also down 0.2%.
The data would have reflected deals done months before October.
Rightmove’s December property index has found that two consecutive and significant property price drops has meant that properties are now £10,000 cheaper than they were three months ago.
The price of property coming into the market at present is 1.5% cheaper than it was in November, this equates to a reduction of £4,496.
These falls have been larger than usual, making this the largest fall over two months for six years, showing that there are more than just seasonal forces at play.
‘It appears that we are now seeing the uncertainty that has been permeating the London market spreading to the rest of the UK as we approach the Brexit D-Day,’ industry commentator Naomi Heaton, LCP chief executive officer, said this week.
‘With transactions falling, average prices stagnating, a series of residential taxes over recent years and a deferred vote on the current Brexit deal, the UK housing market is in the middle of a perfect storm,’ she pointed out.
‘Without a clearer picture of what to expect after 29 March 2019, it is unlikely that there will be any material change to the status quo,’ she added.
Other new data shows that transactions in Greater London are down by 7% and down 8% in the South East over the last two years, and trends tend to occur in these regions first, before rippling out across the rest of the country.
Combine this with the usual Christmas slow-down, and home sellers really are going to struggle to sell their property in the first quarter of 2019, as Brexit uncertainty is only set to increase in the new year.
However, the usual issues that make a sale highly necessary - death, divorce, and debt - do not care about economic conditions and Brexit, so there will be some sellers who cannot hold on for market conditions to improve.
For buyers, only those who can secure a significant discount from market value, will feel confident enough to buy during the first half of 2019.
Sell Your Property to a cash buyer
If you are motivated to sell your property quickly and you need to sell your property within a timeframe that suits you, Open Property group provide an ethical solution.
We are professional cash buyers of property anywhere in England and Wales and in any condition.
We can make a no-obligation cash offer for your property within 48 hours of receiving a communication from you.
Clearly, we will not offer you market value, and will be looking for a discount to market price, but, as a family-run business, we pride ourselves on endeavouring to create a win/win situation for ourselves and our clients.
Unlike many other “quick house buying companies”, we have a significant cash reserve in our bank account which can be evidenced by our legal team if required.
We can therefore work very quickly with you to complete the sale of your property - sometimes in as little as 7 days - provided that all the documentation is to hand and that solicitors have the capacity to work on the sale to push it through.
In these times of great uncertainty, our professional house buying service is one thing you can rely on, so get in touch if you would like to see how we can assist.
Contact us today for a no obligation cash offer.
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