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The tempo in the property market is upbeat and appears positive for the remainder of this year, according to leading estate agents Winkworth.
The upturn is the result of increased activity in the prime sector and also in the flats market, driven by first time buyers trying to beat the increase in stamp duty next April, being seen across Winkworth’s nationwide network of over 100 offices, including more than 60 offices in the capital.
Winkworth’s Chief Executive, Dominic Agace, speaking on the latest episode of Winkworth’s Property Exchange podcast, said: “We are seeing increased activity after a year of resilience in the face of elections, war and the Budget which was less bad for the market than anticipated, with no change in capital gains tax. It hasn’t put off high net worth international buyers. The prime market and central London have suffered most but there is more activity in terms of sales, with latest figures showing that sales 22 per cent ahead of October last year. Prices have also tipped to positive from 0.9% to 0.5% - small numbers but you can see the turn to positivity.”
He added: “We are seeing a Trump trade in property. We have a historic relationship with US buyers in property, reflecting our status as a global financial centre. We expect to see more US buyers in central London.”
With stamp duty increases looming in April, Winkworth predicts a brisk market in flat sales before and after Christmas. Dominic Agace told the podcast: “First time buyers will be keen to avoid a £6k increased stamp duty costs which can go a long way to sort out a kitchen. Instead of the traditional slowdown before Christmas, we will see a more active flat sales market before the deadline. This will continue after Christmas. Boxing day has become a big day in the property market. For those selling flats, it’s a good time to get exposure.”
According to Anthony Emmerson, of mortgage experts Trinity Financial, people should seek a mortgage rate now. He told the podcast: “The general trend is that interest rates are falling but we are not sure how quickly they will fall. Don’t just put your head in the sand. Do things as early as you can. If rates get better, you can get an improved rate. First time buyers should look at longer mortgages. If you are young enough and with a strong income and with a decent deposit, it could be cheaper for you to own than rent, as we feel rents will continue to go up with less and less stock available.
“Our landlord clients are really hurting. Taxation, worries about energy efficiency and renter reforms. Amateur landlords are seeing more risk and are trying to get out of the market.” Both Dominic Agace and Anthony Emmerson predict that interest rates could be down to 4 % by this time next year. Anthony added: “Cheaper interest rates will help, and we need to battle inflation. It will be slower than we had expected.”
