Fears of a Slump in Property Prices
There is a lot of negative news in the UK property market currently, lots of predictions of price drops and fears towards the Brexit outcome along with reductions of asking prices more common and taxes introduced to hinder greedy landlords and investors pockets and pension plans. Though is it just a bit too soon to be scaremongering us all with such headlines? Yes, we have seen crazy hikes in prices in recent years and if we turn our heads towards London then we have seen sheer vanity in the efforts of investors and buyers to get their hands on desirable located dwellings.
A quote from DailyMail online above either shows us there is a current nose dive in property prices or people are having to get real with asking prices as buyers are starting to come to their senses. Yes, a 31% drop in asking price (not sold that is) shows a negative figure, but let us ask ourselves, who was the agent that initially valued it at 31% higher than what it is now? Yes maybe the seller has issues and needs a quick sale, but 31% drop? Maybe a new flyer-over has just been announced and it is going to block out the afternoon sun in the back garden… then maybe a 31% drop can be justified hey!
We have had many years of sharp increases and every penny has been squeezed from UK property mostly from investors – We are now in the zone that estate agents are starting to suggest not 25% over valuing, but maybe listing at market value or even just below to attract a buyer and a quick sale.
The drive of existing landlords is starting to dwindle as we hear that many are considering ditching their property portfolios and certainly new would be landlords would be deterred from entering the industry as it is no longer as lucrative both in fines / taxes you are open to and of course the hiked up prices of property meaning that a sudden interest rate hike could mean that your money would be, at last, better off sat in the bank at 5% interest over gaining 3% profit in a property that could be a minefield of endless headaches.
Oh, just to end with another quote from DailyMail online: “This six-bed flat in South London’s Balham shows a 39% reduction from £1.625million to £1million”
It’s starting to sound like an end of season sale at Sports Direct!!
You May Also Enjoy
Understanding House Value in the UK: A Simple Guide
What does latent defects insurance cover?
Breaking Property News – 24/04/24
An average rate of 6% for the first time since November – Rightmove’s weekly mortgage tracker
Understanding Property Valuation: A Simple Guide