It would be easy to think that the property market is in a bad way and will continue to be so until the economic picture improves. However, people will always need to buy and sell houses due to work, relocations and changes in their family size, so the property market continues to move, at least to some extent. There are still a wide range of mortgages available, just not perhaps at the ultra-low rates to which we have become accustomed in recent years.
The general picture
It is difficult to make accurate year-on-year comparisons of house sales and prices due to the balloon caused by the stamp duty holiday announced at the end of the peak of the COVID-19 pandemic. However, Which? have found that there is generally a year-on-year increase in house sales values of some 7%, taken from a range of data sources such as the major mortgage providers, the Land Registry, and Rightmove.
That said, the same sources also suggest that there is now around a 1% month on month decrease. More concerning is the fact that these figures come from before the budget announcements made in the Autumn which had such an effect on the financial markets. One bright spot from those announcements was the increase in stamp duty land tax thresholds, reducing some of the costs of moving, especially for first time buyers. Although that is now known to not be a permanent change in the thresholds, they will remain in place for some time yet before being tapered off back to previous levels.
The Bath property market
Local estate agents report a relatively healthy market for Bath, given the impact of various financial events and the fact that we are entering a typically very slow time of year for house buying and selling. Prices are reportedly around 9% higher than last year, slightly higher than the figures given for the national picture. When considering the desirability of living in Bath, this makes sense, as buyers seek to make the best move they can if they are going to be paying more per month for it! However, buyers should never ignore the importance of getting a building survey Bath, for example, mortgage providers will be mindful of the history and complex structure and architecture of many of the houses in the town, some of which are listed buildings. Companies such as Sam Conveyancing can assist in arranging an appropriate survey and in handling any actions required as a result of its findings.
There are reportedly more properties on the market in Bath than at this time last year, and selling times remain broadly similar. Semi-detached houses are very easy to sell, less so for flats but there is still a strong market for them and many first time buyers will have to readjust their expectations in line with affordability calculations, potentially making flats more attractive. The majority of properties are sold within two months, so sellers can easily test the market and aim to be ready to move themselves, whether up- or downsizing, relatively quickly. Overall, there is every reason to believe that the property market in Bath remains fairly robust, when taking into account the time of year and economic climate.
