What affects house sales?

The housing market shifts and changes through the calendar year subject to many different factors. The worlds trade markets, wars, pandemics, end of tax years, stamp duty, festive seasons and holidays all have an influence on sales and house prices.

Interest rates

The rate of interest is always closely watched because at a lower rate this inevitably draws in a greater number of borrowers and buyers. This is because interest rate impacts the cost of getting a mortgage. The interest rate has sat at the current level of 0.1% for some time but with rising inflation, the news suggests the Bank of England may have to act and increase this.

income and changing population

It’s a fact that major shift in the demographic of country can have an impact on the housing market for many years to come. Demographics are the composition of the population and take into account age, income, migration patterns and population shifts. When we consider the major changes in the last 18 months due to Brexit and Covid there has been a massive shift in demographics in UK.

The economy

Brexit and Covid have also clearly impacted the economy. Positive economic trends encourage people to make decisions such as buying and selling property. When confidence is low therefore it can have a negative effect on the housing market. Fortunately, we seem to be entering an upward trend with the end of furlough and better than predicted economic performance.

Supply and demand

Like any market forces, supply and demand affect the property market. Been supplied new properties is low but the demand for housing is high we often see house prices rise. Conversely when there is a great deal of property on the market, homeowners may make the decision to lower their price to increase interest in the property.