The summer holidays typically bring something of a lull to the property market and this year was no exception, particularly with families getting used to travelling abroad again. However, we have seen a busy start to trade this Autumn with lower mortgage rates implemented over the summer months encouraging both buyers and sellers into the market. Over the last six months the length of time to agree sales has been noticeably longer at an average of 60 days, particularly on sales of higher value property. Having said that, reports of possible cuts in the base rate should be a positive which will stimulate buyer activity thereby reducing the time from launch to sale agreed.
The property portal, Rightmove, states that ‘2024 continues to exhibit a return of momentum in the property market after what can be considered a tumultuous unsettling few years where interest rate hikes and the cost-of-living crisis dampened market activity’. Whilst this might be true of the standard residential market, the more niche rural land and property market thrived post covid and is only just easing back now.
The Autumn Budget Statement will lay out the Government’s fiscal plan to try to fill the reported £22bn black hole in Government finances and there are rumours of alterations which may affect the housing market. These include a possible reduction in the threshold of Capital Gains Tax (CGT) and a change in the base value dates which could impact on individuals’ desire to sell because of increased taxation. There is also talk of capping Agricultural and Business Property Relief which could reduce the number of speculative investors.
There are also potential positives on the horizon including renewed investments in rural broadband coverage and transport links which, by improving connectivity and accessibility, could stimulate the market by allowing buyers to expand their geographical search area. Similarly, such investment could facilitate diversification projects for farmers with redundant buildings which are ideal for office complexes. The other prospective positive is a change in the thresholds of Stamp Duty Land Tax (SDLT) which is designed to encourage buyers and boost the market.
The timings of any changes will have a huge impact and will dictate what considered buyers and sellers decide to do. Meanwhile the old adage that ‘quality sells’ remains true and the most attractive and best located houses continue to attract the most interest even in a slightly sluggish market. A noticeable change, though, has been the recognition of the increase in building costs since covid which has meant that buyers have been a little more cautious about anything that needs a lot of work doing. Buyers still want to adapt, modernise and change, but they are more realistic about the cost of doing so.