For those of you who regularly look at property prices online, you will have noticed a significant division in pricing when it comes to certain areas of the country. For example, property prices in London and oddly enough, the South East are continuing to bloom, in some cases by as much as 6.3% on last year. However, in stark contrast, places such as Humberside, the North West and Yorkshire saw a decline in property price by 1.9% during the same period.
The explanation for this comes from a variety of economic and social factors but is in no small part driven by what is known in the property world, as a ‘two-speed market’. This can be explained very simply by looking at who is actually buying what on the market. For example, in one lane, which we can call the fast lane, we have property buyers, who are equity-rich and swarming onto the market to take advantage of attractively low housing prices in certain areas. However, almost pulled over onto the hard shoulder of the property highway, is the first time home buyer market, which has practically come to a stand still, as those people find it increasingly more difficult to secure mortgages.
If we add to the mix the fact that higher price rises in the South and the capital are being buoyed by wealthy buyers, who are purchasing property before the new tax band of 7% kicks in, then we can see the glaringly obvious fact that the wealthy are the only people who can afford to buy property in this current, economically black and depressing juncture in our country’s history. The 7% tax band was imposed on properties over £2 million by the Chancellor during the last budget.
Furthermore, most high end sales, took place in and around the capital, where wealthy overseas buyers have shown a strong interest. However, recent figures have shown that house sales in the £150,000 -£200,000 price bracket have declined by a staggering 25% on the previous year. Translated into layman’s terms, this essentially means that if you are looking to sell your house and your house sale price stays somewhere between £150,000 to £200,000, then you will arguably be waiting a long time for that sale to be realised.
If you are happy to sit the market out and can afford to wait for better times, then this is not a big problem. If however, as a direct result of the crippling economic downturn this country is now suffering, you are one of the many people looking to make a quick house sale then turning to a registered property buyer for help, may be the most expedient option.
Trying to sell property quickly through the traditional means of going through an estate agent, is now practically an impossibility and with waiting times, agents fees, solicitors fees and delays caused by red tape, then using a home buyer to make a quick house sale, has now become a viable option for many. The housing market looks set to stay this way for some time and if you need to get out quick then finding a good property buyer could be the answer to what is becoming for many, a very stressful and difficult time.