Andy Frankish, Director of Mortgage Advice Bureau comments:
“The latest data from Rightmove today provides us with an insight into asking prices, rather than completed transactions, and therefore gives us a sound snapshot of the current market in terms of consumer behaviour. What would appear to be evident is that buyer interest has remained undimmed, and that the Stamp Duty (SDLT) exemption scheme for first time buyers has already seen entry level properties attract a premium; an outcome which many predicted when the announced was made in November.
In other sectors, such as ‘Second Steppers’ and higher value properties, whilst month on month and year on year growth in many areas is subdued, that’s a far more positive situation than many had feared, which was that we’d start the new year with a ‘bearish’ market that would see growth overall slide into reverse gear. So whilst asking prices haven’t increased significantly in January, frankly the situation is better in most regions than many had hoped. That said, London is still seeing prices cooling, which is a continuation of the trend which has been brewing since last year.
What the report does indicate in no uncertain terms is that buyers are becoming more selective, which means that both price and presentation for would-be sellers remains key to ensure that their property is desirable and realistically valued. Having said that, the ongoing lack of stock in popular areas will possibly lead to the potential for prices to galvanise where there isn’t enough stock once the market gets into its full stride within the next few weeks. Whether that will be further fuelled by competition between first time buyers remains to be seen, and it would be a shame if the savings that they were able to make in SDLT were instead eaten up by having to pay an increased price to get on the ladder, which probably wasn’t what the Chancellor had in mind.
All in all then, whilst not a racing start to 2018, the market would appear to have maintained a steady equilibrium which is in many respects, a significant outcome given current economic and political headwinds.