With a prediction that the pound could see a sharp fall (of which it did), some argued about the possibility of dramatic price corrections as a result; which may have led to a rise in demand in the residential property sector. Though not untrue, demand does continue to outstrip supply and perhaps surprisingly areas in Essex i.e. Chelmsford has seen a 14% increase in average sales over the last 12 months.
Over the last few years I have seen a number of people who have put their property plans on hold for clarity and calm over these turbulent political times. But with another election now not until 2020 and predictions forecasted for a ‘soft landing’ rather than a market crash, it begs the question of whether sitting on the fence is a good idea. With news that rents are rising at approximately double the rate of wage inflation (more so true in the South East region, seeing a 3.3% rise in rent) the financial logic supporting property ownership appears to be stronger than before.
After all, past performance does not necessarily guarantee future performance, and despite four General Elections and eight milestone political/economic events, the property market in Essex has never looked stronger – With regional changes in average values at 12.3%, close to London at 12.6%, confidence should instill again.
Of course buying a property during times of uncertainty can be one of those thoughts that can keep you up at night, but the first and most important steps is for buyers to surround themselves with the right advisors who can provide tailored objective advice. Making sense of what has perhaps rightly been called a ‘polarised’ market has become an increasingly complex challenge. For instance, in the local Essex market there are properties now selling way in excess of their guide price, yet in the same area there are other properties offered with a 10% plus discount.
I have no doubt that the country will go through a significant change over the next few years which will create different kinds of threats and opportunities. For the well informed property purchaser, however, who is willing to view medium and long term objectives on property ownership, the months ahead are likely to present an interesting and historical window of opportunity that should be seized without a moment’s hesitation, regardless of whether over the next year or two it might take market sentiment to recover in confidence.
If you would like further information on how I can help you to save time and money with your property purchasing plans, then please get into contact today.