The increase in sales activity has been notable. We have observed more sales agreed so far this year than in the previous six years, with only the post-pandemic stamp duty boom in 2021 surpassing the current figures.
Across the John D Wood & Co. network, there has been an 18% increase in new registered buyers year-to-date* compared to the same period last year. This surge in buyer interest is a positive indicator for the market as a whole.
Reflecting on past elections, such as in 2019, there was considerable apprehension due to the stark contrast between Jeremy Corbyn and Boris Johnson's policies. This time around, the market seems to be more resilient, with many anticipating a potential Labour government. Concerns like the potential introduction of VAT on school fees have been considered, but overall, our clients are making informed decisions and planning accordingly. This policy has been on the agenda for some time, and some might even consider releasing equity to offset the potential rise in school fees.
Selling Opportunities
From a selling perspective, the current market conditions are advantageous. Properties, particularly those with gardens and outdoor spaces, tend to present better during sunny weather, often commanding premium prices. Many buyers and sellers aim to finalise transactions before the summer holidays, as market activity typically slows down when people go away for extended periods. Waiting until September introduces other uncertainties, including the upcoming US election.
International Considerations and Future Outlook
The global political landscape, including the US election, could introduce another layer of uncertainty. The potential economic impact of differing policies between Trump and Biden is a factor for some investors. However, our international clients have already navigated significant changes, such as the Conservative government's policies on capital gains tax and extra stamp duty. Therefore, a potential change in the UK government is unlikely to significantly deter overseas investors.
Overall, the property market remains robust and active despite the impending General Election. Buyers have an excellent selection of properties to choose from, and sellers are benefiting from the current demand. At John D Wood & Co., we are optimistic about the continued stability and growth of the property market, with current indicators suggesting that the property market will remain resilient even as the political landscape continues to evolve.
Author:
Jimmy Waight
Head of Sales
* John D Wood & Co. internal data 2024
