Check out house buyer thinking about the E U referendum and a review of quarter one 2016 trading

Apr 06, 2016

First quarter trading up, but are house buyers going to be influenced by E U  referendum? 

McCarthy Holden’s first quarter trading for 2016 was positive and there was a welcome but unexpected surprise hidden in the trading results, which were up 28% on 2015.

After weeks of conveyancing chaos leading up to the Stamp Duty Land Tax deadline at the end of March, we thought our first quarter results would show a spike in trading for sub £500,000 properties, which is a typical sector for Buy To Let Landlords. At least one major lender was struggling to cope with the Stamp Duty Land Tax deadline of midnight on the last day and Conveyancers were back at their desks before dawn broke on the 31st March.

House sales and property rentals performed well across all ranges, but we really didn't see the trading trend coming in quarter one, wherein the the best performing sector was house sales in the £1.0m to £1.6m price range. 

Will the forthcoming E U Referendum impact on this positive outcome? 

At another level, the first quarter 2016 results indicated that house buyers are not at all influenced by the E U referendum and any potential uncertainty around the outcome. To make sure of our ground on this we undertook a mini market research and contacted real buyers, checking some key indicators about their thinking and how the forthcoming E U Referendum might influence their decision making.

The results summary revealed a very clear outlook for the buyers we canvassed and the feedback was as follows.

  • 88% of buyers canvassed will not have their house buying plans influenced by the E.U. referendum, leaving 12% who will consider this a factor
  • 87% of buyers canvassed will not have the timing of their decision to buy influenced by the E.U. referendum, leaving 13% who will consider this factor
  • 50% of buyers canvassed believe house prices will be affected by the referendum outcome, leaving 50% who do not believe it will have any impact.

In a previous blog we suggested that the E U Referendum and even a Brexit would have little or no impact on the residential property market, so it was good to have insight from real buyers and experience their motivations to simply get on with life and secure a home.

For prospective house sellers this is good news also, because confident buyers are essential to a strong house market. With the potential for an equally good quarter two trading in house sales, why not indulge in a professional market insight and a free property valuation and / or contact the nearest branch to your property.

 

John Holden - Chairman and Managing Director McCarthy Holden