Pictured is Esaleuk.com MD David Rook
A Yorkshire estate agent has been assuring anyone thinking of selling their home that the result of the US election is unlikely to have any immediate impact on the property market in the UK.
Some have been predicting doom and gloom in light of Donald Trump’s election as US president hot on the heels of the Brexit vote in June, which commentators suggested could lead to a slump in prices.
However, in his latest blog (http://www.esaleuk.com/does-trump-mean-slump/) Esaleuk.com MD David Rook says – although it would be complacent to suggest Britain has ridden the storm – there are too many factors in play in the market to make predictions at this stage.
He said: “A significant change in UK Government policy would be required to force prices down quickly so, I’m sorry to say, if you’re a first-time buyer, Mr Trump’s victory probably won’t bring you closer to an affordable home within the next few years any more than Brexit has to date.
“In short, the UK needs more homes but not enough are being built to meet demand. That means a shortage in supply is driving prices higher. As a result, many of the over 55s are cashing in on their property wealth, downsizing to help younger members of their family get a foot on the property ladder. However, that also puts ‘silver sellers’ in direct competition with first-time buyers, which means stiffer competition for smaller properties, driving prices higher still.
“Meanwhile, other savvy over-55s without family to worry about have spotted the fact that fewer homes for sale means younger generations are being forced into rented accommodation. With both revenues and property values rising, buy-to-let has become a far more lucrative option than some pensions, prompting many to cash them in and invest in property instead. More competition for the small to medium-sized home, meaning even higher house prices.
However, Mr Rook adds the most recent phenomena is inactivity in the property market. The wait-and-see policies adopted by some of the big corporate players in the wake of Brexit – and now the Trump victory – are being repeated by those thinking of selling their homes, which means the number of houses coming onto the market has slowed.
“The likely result is that house prices will probably remain high or even continue to rise,” said Mr Rook. “The Government has pledged to build more homes to ease the log jam. New initiatives have also been promised to replace Help To Buy, which folds at the end of next month. However, neither
are likely to result in a sudden or dramatic drop in house prices – unless there’s an equally sudden drop in demand.
“Too many people have seen high prices quash their dreams of home ownership to make a rapid slump likely; there are simply too many who would jump at the chance of buying their first home or moving up the ladder a rung or two.
“So, if you’re thinking of selling, our advice would be not to worry too much about The Donald or even Brexit come to that. Be cautious of course. Do your homework and check out the apps which give you an idea of what homes are selling like in your area.
“But, if you prefer a voice and someone to chat to before you make a decision, just give us a call or drop us a line. We’d be more than happy to help.”