The National Association of Property Buyers (NAPB) has observed “positive signs” in the property market as 2023 draws to a close, suggesting a potential uplift in the run-up to Christmas. According to Jonathan Rolande, a spokesman for NAPB, the market might defy the recent trend of declining prices.
Rolande explains: “Despite what many people think, the run up to Christmas can be a good time for the property market. It’s true that the number of people who start looking to buy or sell reduces in the early winter months but there is good news too. Those committed to moving will be focused on getting to the all-important completion day in time for Christmas.”
He adds that while this increased activity might not immediately reflect in house price data, it could prevent further price drops. “When figures for the final quarter are released, they may show sufficient activity to have supported prices that have prevented another drop – that is about the best we can hope for as we see out the year. If that trend continues into 2024, many in the property industry will breathe a huge sigh of relief – it could have been a lot worse.”
Rolande also notes a sense of cautious optimism, especially among landlords who are being enticed back into the market by higher rents. He acknowledges the impact of interest rates, suggesting that people might be more inclined to invest in property rather than keeping cash in the bank.
Discussing the potential influence of the upcoming election, Rolande suggests that government efforts to create a ‘feel-good factor’ might boost the market. He also points out the recent drop in fuel bills and the expected increase in pay packets due to the reduction of National Insurance and a rise in the minimum wage. However, he cautions about the economy’s fragile state and the continuing high costs of goods and services.
In conclusion, Rolande said: “The property market may have scraped through this year, but there are still many things that could blow it off course again so we shouldn’t take anything for granted.”
