The Halifax (as well as the Land Registry and other house price indexes) use data of property that has sold and completed (completion being when monies and keys of homes sold are transferred). The Halifax data was based on properties that completed in December 2019, and as anyone who has sold or bought a Basingstoke property in the last 10 years knows, the time it takes from agreeing a buying price to handing over the money is many weeks. In fact, the average length of time between sale agreed and completion in the country is running at 19 weeks, meaning the figures mentioned by the Halifax are for sales agreed in July / August 2019. This growth relates to what was happening to the property market in Summer 2019.
One of the most important things for the property market is confidence. Interestingly, Rightmove reported a 28% surge in buyer enquiries between the 13th December and 18th December. After a couple of years of Parliamentary hold-up, the confidence following this general election is unquestionably a much needed boost for the economy (and ultimately confidence), so much so, shares in the new homes builders Barratt jumped 14% and Persimmon 12% the day after the election, showing a property sector anticipation that the property market is about to move forward as suppressed demand for people moving home is liberated.
Here’s what has happened to property values in Basingstoke in the 12 months after each of the last 5 elections. The results make interesting reading.
According to past experience, a general election generally has a good effect on the Basingstoke property market.
The rest of 2020 will likely be a seller’s market, as they will have more opportunity to ask for higher prices of buyers who have placed plans to move on hold for far too long – and this could push up property values more promptly in the short term.
Yet, as more properties come on to the market in the usual spring rush, we could see buyers having more choice and thus, as supply increases yet demand remains the same, buyers will get more power to negotiate a better deal. Irrespective of that, there are still insufficient homes being built to keep up with the number required, meaning negotiating power and prices being inflated.The bottom line is, the Basingstoke housing market will get a slight boost from the general election. The threat of a Jeremy Corbyn government definitely stopped some landlords building upon their portfolio in the later parts of 2019 and raised concerns of many leaving the market. A Conservative Government may well lessen the likelihood of some choosing to sell, even if it is insufficient in itself to encourage more expansion.
As long as sellers remain realistic with their pricing and present their properties in the best light, 2020 should be a steady year and it’s quite likely to be busier than the previous couple.
One final thought – remember what I said about the Halifax price Index being behind the times – don’t be alarmed when they announce in the March/April/May a reduction in property values – like I said before – this will be the prices achieved in the later parts of 2019 rather than what is happening right now.
Belvoir is the agent to get you moving. Call us today on 01256 811220 for a no-obligation chat or to arrange for a valuation.