Since the stamp duty holiday ended on March 31st, the property market has recalibrated into a more stable and sustainable environment, according to the boss of lead generation specialists, The ValPal Network (TVPN).
But the coming months may see a surge of first-time buyers entering the market with a base rate cut expected by the Bank of England in May and the probability of more to come before the end of the year.
“Affordability is the name of the game,” says TVPN director, Craig Vile (main picture).
“We saw that with the stamp duty deadline as buyers hurried to beat the tax hike. Of course, that led to a slight downward blip in early April but that was short-lived.”
NORMALISED VOLUMES
He adds: “Transaction volumes have now normalised but underlying buyer demand remains robust and first-time buyers are making a strong comeback with wage rises continuing to outstrip inflation and the prospect of further interest cuts in the pipeline in order to avoid an economic downturn.”
FAIR SHARE
The Monetary Policy Committee of the Bank of England is due to make a decision on the Base Rate at its next meeting on May 8th and most industry watchers are predicting a reduction of at least 0.25% with further cuts – perhaps as many as three – before the end of the year.
“That could trigger a first-time buyer surge and people thinking about selling should act now to take advantage of the brighter, sunnier days as summer approaches,” says Vile.
“The benevolent conditions are bound to get homeowners thinking about selling and, for agents, speed to lead will become increasingly important.”
KEY RESPONSE TIME
“Our new, AI-driven ValPal Pro cuts speed to lead times to under 10 seconds – that is the kind of response time agents need to be looking for if they are going to win their fair share of new listings.
“And sellers need to start acting now if they want to hit peak demand when rates start to come down and affordability improves.
“Even as the market faces ongoing challenges – especially over price – demand has never really gone away,” adds Vile. “Buyers are simply waiting for the right conditions.
“With interest rates looking more favourable, now is the time for sellers to act and agents need to be ready for them.”
