Fewer Brits moved home in May, according to new UK property data
The UK property market has remained rather resilient over the last year, refusing to bow to the pressures of Brexit and other surprise results across the world. And it seems like it may be readying itself to do so again in the wake of the snap election that took place earlier this month (June 8th), with new data showing that fewer people were moving home in May.
Whenever there's a period of uncertainty in politics, British sellers and buyers alike tend to adopt a wait-and-see attitude to the market, looking at how things pan out for property before they decide to make the move. And this appears to be the case in May this year, according to findings from Connells Survey & Valuation.
It said that in May, valuations for home sellers fell from 45 per cent to 27 per cent. This is largely the result of fewer people choosing to move home during the month. The report added that on top of uncertainty over the political sector, factors such as a shortage of homes on the market and Stamp Duty impacts at higher valuations have meant people being reluctant to move home in May.
"Fewer people are choosing to move home. The limited housing stock means that people already on the property ladder can’t see their next move in the market. After major votes and the economic turbulence of the past few years, many potential movers have adopted a near constant wait and see attitude," said John Bagshaw, corporate services director of Connells Survey & Valuation.
And the uncertainty doesn't appear to be over yet. With the snap election having delivered a hung parliament at a crucial time - heading towards Brexit negotiations - it's likely that the numbers moving home may remain largely flat for some time to come.
"The long term increase in property values over the past seven years has reduced the financial incentive to move, with more homes slipping into the higher stamp duty bands. This means potential sellers could face a larger tax bill should they chose to move up the ladder when buying their next home, thus making it more difficult to free up housing stock to be used more efficiently," said Mr Bagshaw.
Connells believes that at present, more people are choosing to improve their homes rather than move.
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15-June-17General Lettings News