One of the most astounding things that has happened in the last 12 months was something that did not happen. Even after the country saw the deepest recession since the Great Freeze of 1709 with GDP dropping 28% in one quarter, one would have expected a large fall in Southampton house prices would follow. Yet…
Southampton house prices are 7.8% higher than 12
months ago.
Even though buying and selling Southampton property was put
on ice for the first time in the history of the Southampton property market last
spring due to the Covid 19 outbreak, as the Southampton property market wobbled
on the edge of a deep recession, it stepped back in early summer and now it is rocketing
upwards as…
13.4% of Southampton homes are selling within a
fortnight of coming to market.
Some commentators have suggested the end of the Stamp Duty
holiday together with the ending of the furlough scheme on the 30th
September 2021 could be the catalyst for a drop in house prices. Even the
Government’s own regulator of finances expects UK house prices to fall around a
couple of percentage points in 2022 whilst some others have predicted a drop of
around 5% as unemployment levels increase post furlough.
However, other property market forecasters believe that property
values in 2022 won’t drop against the background of robust British economic
recovery in Q3 and Q4 of 2021.
What do I think will happen to the Southampton property
market in the next 12 months?
On the positive side, what I do know is the Stamp Duty
holiday enabled Southampton homebuyers to spend those tax savings on the price
paid for their Southampton home and that certainly accounts for some of the
uplift in house prices mentioned above.
Also, the historically low interest rates that have
supported Southampton homebuyers’ affordability for the last 13 years since the
Credit Crunch has continued. Secondly, with people spending many months working
from home, this has seemed to have polarised people’s inclination to make
lifestyle changes. Finally, the Government has recently introduced 5% deposit
mortgages for first-time buyers. All these factors will fuel demand and hence
may cause house prices to rise.
On a more cautious note, I do not believe these very sturdy Southampton
house value rises of the past year will persist at these levels for the next 12
months. With buyers having to use many thousands of pounds on Stamp Duty, the
price they pay for their Southampton home will be curtailed, meaning property
values by definition will ease.
The simple fact is the British economy has yet to feel the
full effect of its largest recession since 1709, and we must remain considerate
about the long-term effects of the economy (and unemployment levels) on the
property market.
These are interesting times for the Southampton property
market. If the price you want to achieve for your Southampton home is the most
important thing, now as opposed to 2022 might be a good time to consider
placing your property on the market.
Don’t forget, you can still put your Southampton property on
the market, find a buyer and then go and see what is available to buy. Many
buyers will wait for you to find a property, yet if they can’t/won’t – you
won’t be made homeless. English property law means you can still come away from
the sale and you won’t be forced to sell. If you would like to know a bit more
about that or any aspect of buying or selling property in Southampton, drop me
a message or call me.
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If you would like to pick my brains on the Southampton Property Market – Just drop me a line on social media or email me @ brian.linehan@belvoir.co.uk you can also call me on 023 8001 8222.
If you are looking for an agent that is well established, professional and communicative, then contact me to find out how we can get the best out of your investment property.
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