Despite an improvement in the perspective of interest rates, sales prices This spring must reflect the wide option offered for buyers, according to Knight Frank.
The real estate agency accumulated its prognosis of the price of the housing of 2025 in the United Kingdom to 3.5% of 2.5% last week, thanks in part to the most cheaper mortgage indebtedness rates.
Tom Bill, Chief of Residential Research of the United Kingdom in Knight Frank, said: “It was a marginal increase [in projected house price growth] Taking into account how much the perspective of the interest rate has improved. The markets expect a banking rate of approximately 3.5% this time next year, which is compared with an estimate of more than 4.25% in early January.
“The forecast also shows how we believe that the impulse in year -on -year growth will be largely on the side. The annual rate is currently less than 3.5%, according to both the country and the National and the Halifax.”
Why such a tentative increase this year?
Bill explained: “We believe that demand could be kept under control by higher inflation or a prolonged episode of” I suppose the increase in taxes “before the budget of this fall.”
However, another factor that maintains growth under control is the imbalance between supply and demand.
According to Knight Frank, the proportion of possible new buyers (demand) to the sales instructions (supply) was 5.4 in April.
Outside the Christmas holidays, which can skew the figures, that was the lowest that has been in mid -2018. The buyer’s confidence was low seven years ago due to the fears of a “Brexit without treatment” and the accompanying internal political instability.
This time, consumer confidence has affected the leg for global commercial tensions and national economic pressures. Meanwhile, the supply has increased for reasons that include the deadline of March taxes, the fact that the sales plans were delayed due to the elections and the budget last year, and a degree of financial difficulties as the mortgage rates are normalized.
There is also a growing number of owners trying to sell due to the next legislative changes.
The result is that the new sales instructions in the United Kingdom were approximately a fifth higher than the average of five years (excluding 2020) in the first four months of the year, and the number of possible new buyers was a fifth minor.
Bill commented: “The timbre tax deadline exacerbated the situation, but only to one point. The maximum savings was £ 2,500 for anyone who makes a transaction before April, or £ 11,250 for buyers for the first time, which produced an interannual jump or 104%
“Despite the financial incentive to complete before April, the average relationship of new buyers to new sales instructions was 7.4 in the first three months of the year, which compared with 8.8 in the same period in 2024 and 8.9 the previous year.
“The result is that the growth of the housing price seems to be stronger in autumn than spring, particularly if the most loose loan rules come later an effect later this year. The annual growth of beam is narrowed in recent months as the imbalance formed.”
Anyone who wishes to avoid a prolonged wait before selling this year must take into account how much of the buyers market has become.
“Buyers can take their time at this time because they have a lot to choose from,” said Andrew Groocock, director of operations of the real estate agencies at Knight Frank.
“This type of competition means that sellers must obtain the sale price correctly when the property is launched for the first time. Just after a reduction, the risk is that a property has become rancid in the minds of the buyers, which is the thaller honor take a longchalling longchalling
