Ever since the New Year, the media has been speculating about the effect of the general election on the property market. Many felt that the vote would de-rail the market recovery. However, there are several factors which may very well keep the recovery on course and keep disruption to a minimum.
One of the biggest factors that has propelled property prices upward is the lack of property available for sale. At Northfields Estates we are seeing multiple buyers available for every property we list for sale and simply not enough property to offer them. This competition among buyers has fuelled the price rise that we have seen over the last year. Annually, house prices were 5.2 per cent higher in March 2010 than in March 2009, which was the largest year-on-year rise since December 2007 and a result of the lack of saleable stock.
Another factor that should help protect the current upward trend in the market is interest rates which remain low and are predicted to remain low for the foreseeable future.
Added to all that, although the fashion for seeing property as a quick way to earn money has certainly abated since the onset of the credit crunch, property still remains a great way to invest. The major shift in attitude however, is not seeing property as something to “flip” for quick profit as popularised by property programs on television, but rather a longer term view. If you own a property for long enough it will always earn equity.
One of the biggest factors that will buoy the market up during the fight for Downing Street is the business confidence that is accompanying the gradual rise of the global economy. Business confidence has reached its highest level in four years according to the Business Trends survey from accountants BDO. So riding that wave of confidence, many people who have delayed selling and buying property will now feel ready to make their move.
No matter which party takes power in May, there will always be people who will need to move for new jobs, better schools or more room.
To find out what your property is worth right now call 0208 840 6666 to request your free, no obligation valuation.