As we enter October, the residential market has bounced back strongly after a quieter summer period during which we also saw the arrival of a new Labour Government.
Activity in both sales and lettings is currently as strong as at any time over the last year and property values remain fairly steady with “doom and gloom” forecasts of wholesale drops seemingly wide of the mark.
The sales market remains price sensitive but competitively priced property continues to attract good levels of interest and sales are being made.
Mortgage interest rates appear to have peaked and are showing signs of being cut as the economy gets stronger and the Bank of England has also started reducing the base rate accordingly.
The new Government has already made the unpopular decision to remove the winter fuel allowance from the majority of pensioners and we can expect some more hard-hitting measures in their first budget at the end of October. There is a strong likelihood of tax rises on assets via taxes such as Capital Gains Tax and Inheritance Tax which may impact on investors and the private rental sector where many landlords have been exiting the sector. Of courses, if this continues, then a reduced supply of rental property is likely to push rental values higher.
The Government has also announced the Renter’s Rights Bill which will see the end of fixed term tenancies and the removal of section 21 “no blame” evictions. It will also impose some restraints on “property bidding” by prospective tenants although the practical implementation on this seems badly thought out and open to “work arounds”
We are planning an event for landlords and investors that will cover the new legislation and budget changes – please speak to our lettings team to arrange an invite.
Overall, the market is moving along OK although transaction numbers across the UK will likely end 2024 some 10% down on the year before.
Certainly if you are planning a move now or early in 2025 then it would be advised to start planning by speaking with us and getting an up to date appraisal of your property and advice on the best way to maximise a successful move.
Yours
Darren Murphy
