Q3 Property Market Review: Election, renewed confidence and planning!
External factors continuously affect how the property market behaves, and that’s especially prevalent in recent times – COVID, the cost-of-living crisis, Europe and even the weather.
So, when a General Election was announced in May by then Prime Minister Rishi Sunak, you can forgive the property market for experiencing a quieter summer even by usual standards.
Yet as summer quickly turns to autumn, there is a noticeable feeling of genuine renewed confidence from buyers who are quickly grasping how the market will act post-election leading up to the impending budget.
In our latest blog, we deliver our assessment of Oxfordshire’s property market in Q3 and the likely traits of the final quarter of the year.
Summer
On reflection, 2024 has so far been the year of excuses.
There will always be a reason why now isn’t the perfect time to purchase a property.
But the aforementioned General Election on July 4 coupled with private schools in Oxfordshire breaking for summer the following day were two key reasons why properties which in previous years would’ve reached completion simply failed to this time.
Interest rates weren’t cut as early as people anticipated, and there’s the autumn budget to consider – all of which sows hesitancy into buyers’ minds.
Renewed optimism
Internal research conducted by our team found the average length of time between buyers signing-up to our services in 2023-24 and completing on a property is 173 days.
Fast-forward 173 days from now and we’ll be enjoying (weather permitting!) the Easter sunshine. As a consequence, behaviours in mid to late September told us those who have been putting off moving for reasons listed above now want to get the box ticked.
This is prompting a renewed confidence in the market as pressure begins to build-up on demand – pressure which is likely to only increase as autumn develops into winter. In summary, if you are looking to complete your move by summer 2025, now is the time to commit.
Budget
Chancellor Rachel Reeves has already expressed difficult decisions on tax, spending and welfare will make up Labour’s first budget which will be delivered at the end of this month.
The government has pledged that income tax, VAT and National Insurance rates will remain unaffected, meaning capital gains tax, stamp duty and inheritance tax could be increased to help plug the nation’s supposed £22bn black hole.
In reality, everyone has been prepared for a challenging budget – quite possibly to manage expectations.
But as we’ve expressed previously, volatility breeds opportunity. Second homes and investment properties in Oxfordshire will become available, but won’t necessarily be listed on the open market which is where the true value of using a buying agent comes into effect.
Interest rates
Elsewhere, interest rates were cut for the first time since the beginning of the pandemic in August when the Bank of England announced its base rate would drop to 5%.
While low historically, the current rate – excluding the last year – does represent a high since the 2008 financial crisis. The present 5% rate will be cut further, it’s a case of when as opposed to if.
Easing interest rates will in itself increase confidence among buyers to invest in the market, which in turn will create competition and likely lead to higher price tags. Understanding what represents good and poor value in this scenario is becoming increasingly important.
Begin your move to Oxfordshire today
Are you considering a move to Oxfordshire in 2025?
Drop our team a message today to learn more about how using the services of a buying agent can save you time and money and take the stress out of one of life’s most important decisions.
Call: 01865 553956
Email: info@oxfordpropertyconsulting.co.uk