Will property prices ‘fall off a cliff’ – don’t count on it
We’ve mentioned frequently in this section that the so called ‘experts’ trying to call the residential property market rarely have a clue, writes Zah Azeem, Partner at Wimbledon based Chartered Surveyors Scrivener Tibbatts.
It’s little more than property astrology. They’re fun to read, but take little notice.
According to FT Adviser, “Property sales down 3% as industry prepares for deals to ‘plummet’. So, let’s investigate why. Well in October, sales were 3% lower than in 2021, because last year the Chancellor gave buyers a Stamp Duty holiday.
In November everyone held their breath until the 17th to assess how much of their disposable income the Chancellor would clawback in income tax. So, of course buyers should be cautious. But in fact income tax increases aren’t slated until 2025.
And then Christmas is around the corner. Father Christmas ain’t cheap, to say nothing of the fact that for many office workers offices will close from 16 December to 3 January. Some of us might even be watching the World Cup till the 18th of December.
Which leaves plenty of time for estate agents to panic, OR, more realistically show you around the new home you’ve always cherished.
Sellers aren’t stupid either. There’s a property shortage, so why sell yours at a discount?
There’s no logic, in my opinion, that the residential housing sector will behave any differently in 2023 than it has in 2022. And that’s before I’ve not even mentioned the i word.
Inflation has a material impact of the valuations we give properties. As we’ve all been told inflation is expected to be 7% until the end of next year. So if you’re selling, remember that. Why accept a sale at a discount?
I wouldn’t. So, if someone tells you prices are coming down, turnaround, and speak to an expert.
If you would like to discuss something related to a property valuation, please contact me direct via email at zah@scrivenertibbatts.co.uk or call 020 8947 7040.
