The following is a guest post. Enjoy!
The housing market has been booming throughout 2015 and into 2016 that looks set to continue. House prices have steadily increased for the past ten years and as we start the New Year, there are no signs of the market slowing down. But, as someone looking to sell their home, what do these trends mean for you?
What are the recent trends?
The steady increase means that it’s more than likely that your home will increase in value throughout the coming year. A report published by the National Association of Estate Agents suggested that the increase is set to continue for at least another 10 years. Although, there is nothing set in stone to confirm this, if we look back at the property market over the past decade it looks pretty similar. With no huge economic changes on the horizon, low wage inflation and tighter lending restrictions, house prices soaring seems like it will be an accurate prediction. With such a huge demand for housing at the minute and so many young people desperate to get on the property ladder it is a good time to sell your home if you’re in a financial position to sell.
Why is this?
The increasing rise and rise of house prices is a result of the high demand for homes in the UK and lack of affordable housing. The government are trying to combat this by introducing higher taxes for buy to let landlords with the increase in stamp duty charges set to be introduced in 2016 and the help to buy ISAs for first time buyers.
So what does this mean for me?
As a homeowner looking to sell your house, it puts you in an enviable position. If you are wanting to move as soon as possible, it’s probably the best time to buy a new home as the new home you choose to buy will be at a lower price now than in say a few years. If you’re looking to upgrade and move to a bigger house now is definitely the time as larger houses will obviously become more expensive.
However, if you’re considering moving house but not desperate to move in the immediate future, it may well be worth hanging on for a few years to see if your home increases in value anymore. This is especially important if you’re planning on downsizing as you will probably make more of a profit on your home by waiting it out for a few years. If you have a property in a very desirable area such as London, holding on to your house for as long as possible is advised as it may double in value over the next ten years.
Therefore, it’s a good time to think about selling your home all round. Whether you’re in a position to hang on and see prices increase even further or need to sell up as soon as possible, making any move in a housing boom is definitely a safe option, you just might make a little more money by waiting a few extra years.
