Insight 10 | Post Election Confidence Boosts Confidence
We have been inundated with calls since May 8th to represent homes sellers. There is a rush of people putting homes up for sale since David Cameron walked back into number 10 Downing Street. So now is the time to put a home on the market; buyers are more confident, the economy outlook looks rosy and late spring is on the air.
Because we only sell beautiful homes, buyers will know that a home marketed with us is worth buying. You will also be interested to read that although our service is bespoke to every client, our fee is lower than the homogeneous high street agents.
So why is the housing market suddenly kicking into action? Mr Clarke explains.
Rightmove, the online property portal, has predicted that supply of homes for sale will increase by between 10 per cent and 20 per cent over the next three months as uncertainty evaporates and the prospect of Labour’s mansion tax is eliminated. A similar increase happened in the wake of the 2010 election when numbers rose by 17 per cent.
People who’d been holding back are now trying to catch the late spring market in a period of perceived stability. I envisage that we could see a 10 per cent increase in sellers over the three months after the election, compared with three months before.
National average asking prices dropped by 0.1 per cent, or £242, to £285,891 in April, as the looming vote deterred buyers and sellers. This was the first fall in May since the previous general election, in 2010, and a big contrast with a 2.1 per cent increase last May. On an annual basis, prices rose by 2.5 per cent, the lowest annual increase in two years.
In the more expensive range, the reaction to the Conservatives’ victory was substantial. We have received two enquiries from owners of homes worth over £2million about advice on whether their is interest in the market.
Like other agents, we had feared electoral gridlock in the event of a hung parliament, with the possibility of a second general election having an effect on activity. With the unex[ected Conservative win we are already witnessing confidence returning to the market with buyers and sellers in a more informed position to make the decision they were putting off.
Extra sellers could cause prices to slip further this month, although the release in supply will be nowhere near enough to tackle the country’s housing shortage. Last week the Royal Institution of Chartered Surveyors (RICS) warned that affordability and the chronic lack of new homes coming on to the market had become a national emergency. David Cameron has pledged to revive the right to buy policy for housing association tenants, but RICS said that demand-side measures would not let the Conservatives deliver on their promise of one million homes by 2020.
Respondents to RICS’s monthly survey were confident that house prices would be higher in every region in a year and were predicting that the average cost of a home would grow by 5 per cent per annum in the next five years.
The housing market is built on confidence and we believe that buyers can be confident there will be a fresh and exciting supply of houses coming to the market, and sellers can be confident that their home will sell due to the confidence in the market.
If you would like to sell your home with Mr & Mrs Clarke please contact 0330 111 9766. We ensure that your home stands out from the crowd with the bet marketing. Our boutique service is different to other high street agents. We treat our clients with care and we offer the high standards a discerning customer requirers. Our expert sales team are second to none and because we only sell beautiful homes, buyers will know your home is worth buying. We sell homes acres the UK and offer a bespoke service to each client. Visit www.mrandmrsclarke.com to see other homes we are selling and to learn more about us.