From our Hampshire guru, Russell Hill, based in our Petersfield office.
The start of 2024, as in 2023, saw a late rally of confidence pre-Christmas carried over into the new year, with buyers anticipating a cut in interest rates. So, the early bird did indeed catch the worm, and a house photographed in 2022 came to the market and despite endless rain, wellie boot viewings and grey skies a sale was quickly agreed.
However, the weather did not play ball in 2024 and neither did the Bank of England. Spring never sprung, playing havoc with photographers’ schedules, and interest rates were static, meaning buyers’ moods matched the weather as they sat on the fence refusing to lock into fixed rate mortgages until interest rates dropped. This was compounded by the media sentiment and election speculation resulting in the spring market stalling – most unseasonal. Historically, decision-making pauses either side of an election and this year was no exception but, as always, good preparation, great photographs and committed buyers meant we continued to achieve sales.
With the pause button engaged along with low levels of transactions, it became hard for agents and sellers to understand where the market had landed so we returned to the price reduction cycle, matching committed buyers to committed sellers and began to benchmark new sales and see encouraging signs through late July and August. However, we hit the pause button again with the barrage of negative media news running up to the autumn budget as buyers re-assessed their finances. Remarkably, there was nothing too dramatic for the housing market in the October budget.
At BCM Wilson Hill we remained positive, understanding the shift in the market, and were proactive about resetting asking prices reflecting market evidence. The second interest rate reduction was negated by the budget forcing mortgage rates up. The result was that stock levels reduced as discretionary sellers pulled houses from the market while they reflect on a revised campaign in 2025.
In the meantime, our lettings team provided clients with options to let their property while the market settled; it always does, as families need more space and downsizers need less. Many London and local families are now seeing opportunities to trade up and see the sense to upsize rather than extend and take advantage of the relativity of the market to settle for that long term family home. We have great state and private education in Hampshire, Surrey and West Sussex, which is always a strong attraction for buyers. What is more, the quality private day schools is attractive to buyers who are looking to refocus away from the higher priced boarding experience.
The year came to close with a late sales rally and we agreed some sales at over the guide price. This underlined the importance of marketing whatever the complexities of the market.
2025 our Vision – Normality returns.
In 2025 we anticipate a year of greater volume with the headwinds of the last 12 months well behind us. Instructions held back or paused in 2024 are expected to reach the market early in 2025. Buyers will have more choice and a greater sense of the road ahead, empowering buyers, both new and old hands, to buy rather than rent. We will find a more stable market and expect evolution not revolution; sellers and buyers should take full advantage.
Get ready to sell:
- Have your house prepared for sale the year before you intend to move, ideally photographed May/June (better light and longer sunnier days).
- Prepare the legal file so that any conveyancing wrinkles can be audited, identified and solutions found and put in place. We are now in a “sellers declare” not a” buyer beware” world.
- If private drainage, have your system checked for compliance to current regulations as sellers have a duty to declare compliance.
- Audit your planning and building regulation consents, are they in place or is anything missing?
- Use time to de-clutter and think about when you want to actually come to the market. It will also give you time to attend to any of the above if solutions need to be found.
- Have your electrics been inspected and certified in last 10 years?
- Service your boiler.
- Call your agent, build that long term relationship and trust in your agent.
