03 May Will the Election delay the Spring housing market bounce?
Bringing your house to market at the right time is important when trying to achieve a quick sale at the best price.
Peak times in the market tend to be May and June followed by September and October. General Elections, traditionally held in May or June, have historically had the effect of dampening the usual Spring rise in the housing market.
In the UK property market, consumers crave predictability and certainty. Any potential change to the political landscape, such as the announcement of the snap general election, can have a significant impact on consumer mindset and cause people to think twice about completing a property transaction.
If we take a look back to 2016, there were three key political events which caused periods of unpredictability, and subsequently had a detrimental effect on property chains – the stamp duty increase, the EU referendum, and the US general election.
No market likes uncertainty and whilst it’s been argued that this election is over before it’s begun, what will happen to house prices? There is evidence to suggest that transaction levels pick up in the immediate aftermath of the vote.
During three of the last five Election years, the Spring bounce in transaction levels has been tempered. In 2015 (the most recent Election year) sales in the run-up to the vote during March and April were 9.2% lower than might have been expected.
The pick-up in transactions after Elections has traditionally begun almost straight away. Over the last five Election years, sales in the two months after the Election have increased, on average, by 18.1% compared to the previous two months. This compares to a rise of 13.4% during the same period in non-Election years. The pick-up in 2015 was even more pronounced. Sales in the two months after the Election rose by 21.2%.
When bringing your property to market it’s important to get the timing right. If you’d like a chat with on of our experienced property professionals to discuss the best strategy to sell your house, call us today on 01325 776424.