When is the right time to sell your property? Unfortunately, we can’t outright answer that question for you. Choosing when to sell is always personal, and depends on what’s motivating you to put your property on the market. Is it itchy feet and longing for a change of scene? Or is it something more time-sensitive, like a new job, new baby, retirement or a change in your finances?
Whatever your reasons for selling, there are things to consider before you time your move – and in the midst of the coronavirus pandemic, there are added complications, as well as benefits, depending on your situation.
Here, we look at the issues currently affecting the market, as well as those that influence your personal decision making.
Stamp Duty holiday
In order to get the market moving after lockdown, the government has raised the stamp duty threshold from £125,000 to £500,000 until March 2021. For a property priced at £500,000, that’s a tax saving of £15,000. It’s no wonder that estate agents have experienced a 49% increase in enquiries for homes in the £400-500,000 bracket as a result.
Those purchasing higher value properties will also benefit: a £600,000 home, for instance, will come with a stamp duty cost of just £5,000, compared to £20,000 at the usual rate.
If you’re considering selling your property, this does provide a significant benefit to buyers over the next six months, as well as a saving on your own property purchase.
House prices and market fluctuations
In the midst of lockdown, experts predicted a drop in house prices as a result of coronavirus. But since the stamp duty holiday was announced, predictions have changed, with different banks and analysts taking a different outlook. Barclays, for instance, are anticipating a price growth of 0.6% over the course of year, while EY expect a drop of just 3%. Less optimistically, Santander predict a fall in prices.
As for the here and now, property prices did experience a year-on-year drop in June – the first since 2012. But research by the Royal Institution of Chartered Surveyors (RICS) reported a rise in new buyer enquiries starting in June, which could signal buyers returning to the market.
Planning permission
Another government announcement that could influence your decisions when to sell is the latest change to planning permission. As part of their overhaul of planning permission laws, some property owners will be able to add certain extensions without needing consent: you can find out what applies to your property here. On one hand, it could allow you to get the additional space you need without selling. On the other, it might be a way to add value to your property in preparation for putting it on the market in the future – but beware of your property’s ceiling value before you start.
Poor performing months
Generally speaking, studies show that March is the best month to sell a property quickly, while August, December and January tend to be the worst months to sell. But this year, the rule book has been thrown out of the window, as the usual spring property boom was quashed by lockdown.
Although it’s unlikely that December will see an uncharacteristic surge in sales compared to other years, the rest of this year – between September and November – could be busier than usual as people look to take advantage of the stamp duty holiday.
And don’t forget…school dates
If you’re moving with children, think about the school year and local cut off points for applications. It is sometimes possible to make a transfer during the middle of a school year, but it’s less disruptive if you can organise your move around term dates. This is particularly important if you’re looking to move with a child who is about to move up to a new school – such as junior or high school – and need to be registered to a local postcode in order to apply.
Making the right choice for you
But as much as we can talk about house prices and market factors, when to sell your home is incredibly personal. Not everyone has the luxury of choosing the ‘perfect’ time to sell, and if you’re in a situation where you need to sell your property – whether that’s because you’ve had a change in circumstance, you need to relocate, or have simply run out of space – it’s important you get the best outcome for you.
At any time, but particularly in the current market, it’s important you weigh up the pros and cons of timing of your move, as there are often more than just cost factors involved. Is a quick sale more important that a slight change in asking price? Will the Stamp Duty holiday balance out this cost difference? Could delaying by a month change your plans for the rest of the year? What are the risks of the market changing further?
At Urban Village, we’re here to talk you through your situation and offer our advice on getting the best result for you and your property, with free a home staging consultation and friendly, local advice wherever you are on your property journey. Call us on 0203 519 9121 to chat to one of our agents.