(QUERY: insert image function not working) The property market is slower this spring, a normally busy time. The market is being affected by the current unrest in the political arena. Experts at floorplansUsketch looked into this further.

Researchers are reporting a 0.4% increase in average home prices this month. This is the smallest average increase for this month since 2011.

Tepid Temperatures in London

Miles Shipside from Rightmove’s property team mentioned, “March is the start of spring. Normally as the temperatures rise outside, the temperature rises in the property market. This year, home buying activity remains cool. Many home buyers are waiting to see the outcome of the ongoing political unrest. Things improve as you move away from the London market, with solid demand for good properties at the right price. The demand is bolstered by needs for new housing and the low mortgage rates.”

Online Property Search Remains High

The political turmoil has not slowed down interest in homes. Online property search activity remains high.

This could mean a Brexit deal will trigger a quick increase in home buying activity. Home movers are watching the Brexit debate waiting for an answer before they invest their money.

The London market remains slow, dragging down statistics in the UK. Nine out of the eleven regions are reporting higher selling prices compared to a month ago.

The capital area has seen a drop of 1.1% over the last month. The North East region reported a 1.3% decline during the same period. There are a few important differences in the pricing history for the two regions, though.

London prices are still strong compared to 10 years ago, with a 68% increase in value. The North East region has only seen an 8% increase in value over the same 10 year period.

Uncertainty Slows the Market

Shipside commented: “Uncertainty slows down the market and causes buyers to hesitate. Sales numbers are down 7% over last year’s numbers, but that still means we are seeing 93% of the people still buying. This pricing lull is an opportunity for smart investors. They can move to a new home at a reduced price with national prices dropping about 0.8% since last year.”

Change Expected After Brexit

Agents are anxiously awaiting a Brexit deal. They recognise the market should rebound once the uncertainty has passed.

The Director of Fine and Country in Nottinghamshire, Mr. Tom De Ville stated: “Things are still moving in the housing market, but more slowly than a year ago. Both buyers and sellers are waiting to see how the Brexit crisis affects the economy. A quick resolution will reassure hesitant buyers and sellers and get the market back up to speed. Sellers returning to the market will help increase inventory, which is low at this time. Houses currently on the market are reasonably priced. Some sellers have not noticed the market has shifted from a seller’s market and is now a buyer’s market.”

Chesterton Managing Director, Guy Gittins, said: “Everyone expected the uncertainty surrounding a Brexit deal would slow down property sales and price for a while. As the date has approached, both sellers and buyers have decided to see what happens. Still, we have seen a very busy beginning to the year. There has been a spike in buyer registrations. January and February saw an increase in both viewings and offers. This shows there is great demand waiting to spring forth once the Brexit unrest passes. We expect to see a rapid recovery in sales and prices when the uncertainty clears. While London property has been slow lately, it will still outperform other asset investments, no matter how the Brexit deal unfolds.”

Everyone looks forward to an improved economy and rebounding property market as the Brexit uncertainty passes this spring.

According to new data, the property market is much cooler than it normally is during this time of year, with what is traditionally a busier spring season being affected by the current uncertain political climate. It has been found by our data scientists that the average prices for properties that are going on sale have increased this month by only 0.4%. That is the lowest average monthly increase since 2011 for this time of year.

A Slow Start?

Miles Shipside, a property expert at Rightmove, says that although March marks the beginning of spring, the housing market’s temperatures have not risen yet. Buying activity is still cooler than normal, with some buyers being hesitant and waiting for the political climate to settle. The further away that you get from London, however, the more resilience there is in the market and there is solid demand still for the right property being offered at the right price, which is reinforced by cheap mortgage borrowing combined with ongoing housing needs.

Despite all of the political uncertainty surrounding us, search activity remains steady on property websites. This indicates that house movers are keeping a close eye on the market, and that may eventually lead to a bounce if and when a breakthrough on Brexit is found by Parliament.

However, the main drag continues to be London, with nine out of the 11 regions seeing new-to-market sellers still pricing higher compared to one month ago. In the capital, prices are down by 1.1% compared to the previous month. The North East is the other region recording a monthly fall, which is down by 1.3%. However, they have very different respective pricing histories.

Compared to ten years ago, London prices are still 68% higher, with buyers searching for prices that settle in at a fair level value. However, in the North East new sellers are asking prices that have only gone up by 8% during that same time.

Need for Certainty

Shipside also said that people and markets don’t like uncertainty. That said,  although sales agreed numbers have seen a 7% drop, they are still running at a 93% level of last year’s numbers. A majority of potential buyers are either getting on with their lives or using the price lull as a chance to get on the housing ladder or move up to the next rung. Compared to a year ago, the national average asking prices are 0.8% lower.

Agents agree that the market, and related businesses including local architects, could really benefit from Brexit reaching a resolution sooner instead of later.

Tom De Ville, who is the director of Fine and Country Nottinghamshire, states that in the housing market the wheels are still turning, but compared to this time last year they are turning more slowly since there is hesitation from both sellers and buyers. Having a political outcome that was more certain would help with reassuring those who are currently hesitating and with getting the wheels turning faster once again, and help with boosting much-needed supply as well. Sensibly priced houses are still selling, but some sellers haven’t realised that the power has shifted to a buyer’s market from a seller’s market.

A Bright Future for London Property

Guy Gittins, who is Chestertons’ managing director, says that it was inevitable that all of the uncertainty surrounding Brexit would end up dragging down property prices over the short term, especially with the date getting closer and buyers tending to sit back to wait to see what happens. He notes, however, that they have had a very busy start to the year, and have experienced a sharp increase in buyer registrations, viewings and offers through January and February, reflecting pent-up demand and indicates that prices are at a level now that buyers are comfortable purchasing at. He, therefore, sees this month’s drop as more of a temporary blip and is expecting prices to start to recover after the market sees more clarity on Brexit. London property, over both the long and medium term, has outperformed a majority of other asset classes, and Gittins believes that regardless of what the Brexit outcome is, it will continue to be a solid investment.

Statistically, the spring and the start of summer are the best times for British people to sell their homes if they want a quick sale and a good price. We have been trained, as a culture, to want to cut our carbon footprint. It is something that is a huge part of our lifestyle choices as people move towards more efficient cars, less air travel, and buying locally produced food. Our purchasing habits have evolved, and that applies not just to consumer goods but also house hunting. Today we look for double or triple glazing, ground source heat pumps, rainwater harvesting and solar power. These things can help to make your home far more appealing to the average buyer.

Government research suggests that if you can improve your Energy Performance Certificate for your home from a D Band rating to Band B then that could add at least £16,000 to the value of your property, and it could well make it easier to get a quick sale.

What is an EPC

The EPC is a ranking of the energy efficiency of your home, and it is a scale which goes from A to G. If you wish to sell your home then you are required by law to have an EPC. The certificate gives potential buyers an idea of how well the home performs energy-efficiency wise, and will also give an idea of how much it will cost to run, and what upgrades they may need to do. Landlords need to have an EPC too. It is now illegal to rent out a property with an F or a G-rating on the EPC.

How Can You Improve the EPC of a House?

The EPC gives potential buyers an idea of the likely running costs of the house and the costs of the home improvements that they may want to do. The EPC has been the subject of some criticism, in part because it puts a lot of emphasis on the improvements property has, rather than specific things which could be important for a given type of property. Take, for example, solar panels and ground-source heat pumps. These can help to reduce your carbon footprint but they may not be the most necessary improvements for a property. Insulating a post-war house to stop heat loss through the roof and walls could be a better decision.

Double Glazing and EPC

The Energy Saving Trust notes that after roofs and walls, a home’s windows account for the largest portion of lost heat at around 20 percent. Getting double glazing from a trustworthy company, such as KJM Group, could pay dividends in the long run and reduce the carbon footprint of the property too. Because of this, the type of windows you have is listed in the EPC, with one to five-star ratings. Single or partial double glazing would score one or two starts, with energy efficient double glazed windows or triple glazing scoring five stars.

Upgrading from single panes to triple glazed windows could save a person as much as £160 for a three-bedroom detached property each year. This makes it appealing for many buyers.

If your home is not energy efficient then the potential savings that could be made from basic updates to the property will be listed on the EPC as well as a rough idea for the cost of that update. This will give any prospective buyer some ammunition to ask for money off the property.

Home Energy Efficiency Matters

Many energy suppliers have increased prices in the last couple of years as the weather appears to be getting colder in the winter. This means buyers are paying more attention to energy efficiency. Around 660,000 people switched energy supplier during February 2018 alone, and the cold snap of the Beast from the East made people more aware of how important insulation can be.

What to Do if a House has a Poor EPC

If you are considering buying a house with a poor EPC then you will have to consider the merits of that particular property. Even a period property could benefit from new windows and other small changes, so there are lots that you can do to make a property more energy efficient and to bring it up to scratch.