UK Property Market: An Easy Win for First Time Buyers Who Sell on Quickly

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While many are peddling doom and gloom for the UK property market others are looking to the underlying economic data and this suggests that it is business as usual. This means that first time buyers who are looking to sell their home on quickly can still do so profitably.

According to Moody’s, the ratings agency, the Bank of England’s decision to raise interest rates will not have a negative impact on the UK’s property market and there are several reasons for this.

The market has shown how resilient it is since Brexit in June last year. Speaking to the Guardian, Moody’s economist Colin Ellis said: “The [property] market is holding up OK. There is an underlying resilience in prices even if transaction activity has been affected. If you look at the balance between the cost of renting or buying, then UK house prices are not overexposed.

“Shocks are being dealt with, and even in the event of a Brexit no-deal, then it’s not looking like the UK economy falling off a sharp cliff.” 

In addition, the interest rate rises of 0.25% will make only a marginal difference to the monthly mortgage bills of those affected. eMoov’s Russell Quirk pointed out: “Any increase in monthly payments, like interest rates themselves, will be marginal and manageable for those impacted. On the typical £150,000 loan, homeowners will be out of pocket around £15 to £30 a month, certainly no grounds to shout ‘financial meltdown’.

“House price growth and the market’s overall stability have been incredibly resilient despite the EU vote and a snap general election. A few quid added to the average mortgage repayment will not deter this growth in the medium to long term.”

All this spells good news for first time buyers who may be looking to purchase a property and then sell it on for a profit – an easy win. Data from the Office of National Statistics shows that the price of an average house in the UK has been steadily rising since 2013 and, if as expected, this continues, then the prospect of an easy win is essentially just a matter of timing. Selling quickly can be made all the easier by using the services offered by the likes of The Property Buying Company who purchase houses in around 2 or 3 weeks.

This proposition may now look even more appealing due to the announcement by Chancellor Phillip Hammond to scrap stamp duty for first time buyers on properties worth up to £300,000. The measure is part of the government’s strategy to solve the housing crisis and was put forward during the autumn budget.

Demand for housing and particularly affordable housing, has been an ongoing problem for UK governments and is part of the reason why the property market is so durable. When property prices are rising, as they currently are, many people choose to hold on to their property, hoping that it will continue to do so. This compounds demand for properties and presents an opportunity for first time buyers who are wanting to sell on quickly. The property may well continue to rise in value, but they sold at a profit.

It is fair to say that while the UK property market is not booming, it is robust and further growth is expected, albeit slow growth. Hiccups in the negotiations over Brexit, should they occur, are not expected to make a significant impact and with some encouraging news coming from the autumn budget, there is little in the foreseeable future that will throw a spanner in the works.

First time buyers prick up your ears and pick up an easy win by selling on quickly.

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