After one of the most incredible years in the world’s history, who would have guessed that the UK property market would have rallied as it has? The question I am now being asked almost daily is: “What do you think will happen next?”
Given the unpredictability of the last 18 months, it’s impossible to be certain, but there are some fundamentals present in the marketplace and economy that give an indication of what probably lies ahead for the rest of 2021 at least.
Throughout my 30 plus years of estate agency, the key factors that determine the market are: interest rates, employment and confidence. Demand is currently massively outstripping supply thanks to the stamp duty holiday deadline and incentives for first time buyers and all Guildford estate agents are very low on stock in most price ranges.
What lies ahead?
I believe the Guildford market will remain active, but to prevent stalling of the recovery post-lockdowns, we urgently need more sellers looking to move pre-Christmas. There is a danger that ultra-low stock levels could lead to overpricing. This in turn slows the market, as buyers back off and wait for reductions to take place.
Sellers should beware of agents promising spectacular prices coupled with noticeably low fees. This behaviour is driven by the agent wanting to win the instruction, rather than looking ahead and considering if they will actually be able to sell the property. Larger firms often target their staff on the number of listings received each month, so agents can feel pressured to win a listing at any cost. This can delay the owner’s move for many months until the price and sometimes agent changes. The one thing I have learned in 23 years of selling Guildford property is it’s impossible to undersell these days, but very easy to overprice.
