The Property Market Pauses

After the sudden rush of activity prior to the 1st April, brought on from the impending increase in Stamp Duty levy for investors and second home owners, the residential sales market now seems to be at stalemate.

Many home owners and those wishing to become home owners, are sitting on their hands until the result of the referendum vote at the end of June is known.  Many polls are suggesting the outcome is, by no means, a certainty.  This is causing people to pause their moving decision until after the vote.  When macro-economic conditions create this uncertainty it normally leads to a bottle necking of demand and in turn activity.

With this in mind, it is highly likely, we will see an incredibly busy period of transactions in the housing market in the third and fourth quarters of the year.  Despite the dip in demand from investors, after the increased taxation laws, the demand from first time purchasers is expected to continue to increase.  This should potentially account for any void created by the reduction in investment purchasers.

Although activity in sales transactions is temporarily stalling, the lettings market continues to remain bullish.  This time of year is historically the start of the busy season for rental transactions.  The supply of tenants looking for short term accommodation is not unduly effected by wider political concerns in the same way the sales market is.

It will be interesting to see what the outcome of the Brexit vote will be and furthermore to watch the tangible effect on the UK housing market.