While increases in additional stamp duty and the removal of stamp duty relief for first-time buyers present challenges to the market as a whole, these have not been seen in activity.
Noting since the budget, the US election has taken place, and a 0.25% interest rate cut.
We have not seen any significant change in buyer activity, registrations, or fall throughs during these events.
This speaks to the resilience of the market and people’s views on it as an asset class.
MORE COMPETITIVE
The interest rate cut is welcomed, allowing lenders to be more competitive on rates, further increasing demand.
For those considering a purchase in the luxury market, activity remains strong, good stock is limited and priced right, and it is being snapped up quickly.
Now is a good time to list; most people traditionally hold off at this time of year from listing, believing buyer activity is lower.
CHRISTMAS
As the totality of the number of properties available reduces as we head towards Christmas, committed buyers are still offering and purchasing.
Especially if you have property that will attract a first-time buyer, the window of opportunity is closing for them to use the stamp duty relief.
I’d strongly advise listing now. In the upper end of the market, seasonality affects those buyers less; they tend to wait for the right property on the right street, but those listings are still commanding a premium.
Now is the time to buy, especially if you’re a first-time buyer.
STAMP DUTY RELIEF
Take advantage of the stamp duty relief. April may seem far away, but in property terms, it’s just around the corner. Plenty of properties in the market and sellers aligned to getting a deal done quickly. Act now, or you may end up paying more in stamp duty.
For those looking to purchase a second home, the reason for their purchase still remains, whether it be a pied-a-terre, second family home, new country, or city of residence.
Life continues, and those purchasers, whilst not happy about the increases, know from their primary residence that the capital appreciation is sizeable if held for a long period of time.
RESILIENT
Property as an asset class is remarkably resilient; it also can be switched to income-generating, if necessary, via renting.
For investors, the increased stamp duty does present an initial barrier, and maybe those considering an investment property will recalibrate offer prices to take into account additional costs.
Overall yields have increased with rental price increases. This should give investors comfort that their investment is still worthwhile despite increases in stamp duty.
While increases in stamp duty may slow capital values from appreciating as quickly, there is only a finite amount of luxury stock.
DESIRABLE AREAS
If the property is positioned well in a desirable area and marketed correctly. Priced right by the agent, making sure there is comparable evidence to support the pricing, demand is there. Ultimately, buyers want that view, lifestyle, postcode, school catchment, and property style and are willing to pay the premium for it.
In general, the market is doing pretty well considering the year we have experienced so far – an early election, the budget, interest rate cuts, inflation coming back down – there have been a lot of distraction and uncertainty.
Clarity around government policies is allowing us all to have more certainty and plan for the future.
This certainly should allow for a stable property marketplace, which is good for everyone.
FIRST-TIME BUYERS
Closing out the year with only a few weeks to go, first-time buyers need to act now. Sellers opportunity is there; speak to your local agent.
Our tips are that it all depends on what you want or where you want to be.
Prime Central London offers amazing locations and a strong historical price track record but has seen little price growth this year.
I’d say look around the edges of those patches; areas like Clerkenwell, Earls Court and London Bridge offer some good value in comparison.
Moving just slightly further out, Dalston, Blackheath, and Peckham certainly have appeal to first-time buyers and the market still has good growth potential.
Ealing and most locations on the Elizabeth Line are rapidly changing.
South Norwood, Beckenham, and Bromley are ones to watch, in my opinion; affordable freehold houses and good transport links are normally always a winning combination.
CONSOLIDATION AND MERGERS
The property industry is in an interesting place. A lot of consolidation and mergers of companies are taking place as new regulations are imposed.
This has become more burdensome and harder for the industry.
With Stirling Ackroyd being a part of LRG: Leader, Romans, Portico, Acorn, John Payne, Gibbs Gillespie but to name a few, we can weather regulatory changes better with economies of scale.
HEAVY LIFTING
PropTech is doing a lot of heavy lifting for the industry and AI holds lots of potential to further this.
Ultimately, though the property industry is a people business, people buy from people; local agents with knowledge and skill wanting to provide top customer service will always be needed.
Property is personal to everyone; it is your home, and agents were there to help with those life events. The industry is in an exciting place and I can’t wait to see what innovations come next.
Alastair Cochrane is Group Sales and Operations Director at Stirling Ackroyd
