Knight Frank Research: New prospective buyers increased 21% in the year to May 2019

Carsten Swift, Associate at Knight Frank, talks us through their recent research and the increase of new prospective buyers.

With the uncertainty of Brexit, is now a good time to sell a property?

The latest Knight Frank Prime Central London Sales Index confirms that supply is shrinking in all price brackets as some vendors hesitate due to political uncertainty.

There’s no denying that the unknown of what will happen with Brexit and whether a deal will be made or not with the EU has caused ramifications to the property market. Would-be sellers are holding out, hoping that house prices will increase post-Brexit, while buyers have been nervous about purchasing with the risk of prices dropping in the event of a no-deal.

Sellers with properties already on the market have been facing lengthy delays, dropping their prices to lure potential buyers. However, it appears a change is on the horizon.

Tom Bill, Residential Research Knight Frank, said:

Meanwhile the number of new prospective buyers rose by 21% in the year to May, showing how active vendors currently benefit from an imbalance between supply and demand”.

This data gives a clear indication there are more buyers than there are homes, making it an opportune time for savvy vendors to make the most of the changing market.

The number of potential buyers has increased month on month since the beginning of the year, while the number of listed homes has taken a more significant decline over the past three months.

Despite the apprehension of what Brexit will bring, now is the time to start actively marketing to sell your home.

When is the best time to sell?

Analysis from Knight Frank has shown that on average, the month of May sees more properties go under offer than any other month. The data (averaged sold subject to contract ‘SSTC’ figures from 2015-2018) shows that almost 10% of homes in the UK are sold in May, with the second busiest month being July.

The number of people registering interest in buying a property is continuing to grow, despite the uncertainty of Brexit. Vendors keen to sell may be well placed as agents report correctly priced homes are gaining strong interest.

Can summer be a good time to sell a property?

Typically, spring is seen as the best time to market your property. With the hope of new beginnings, it’s an attractive time for buyers to get out there looking for their next property.

However, the longer mild days of summer and autumn makes us feel we have extra time on our hands. Potential buyers can often find themselves browsing properties while enjoying time in the sun or on their holidays. Summer or winter sun gives us a sense of optimism, and it's a natural time to reflect on what we want next in life. And with blue skies, gardens in full bloom and natural light filling our homes, photos during the summer months are much more appealing to prospective buyers.

For those contemplating a move in the not too distant future, I would highly advise getting your home photographed during the brighter sunny days while it’s looking its best.

What’s more, it’s an attractive time for buyers to get out and about exploring the local area in its full summer glory. The longer days can also be put to good use for viewings in the evenings and seeing the warmth to your home.

When is the best time to move?

Spring is, by far, the best time to move home. The evenings are getting lighter, things feel fresher, and the milder temperature makes a much more attractive time to be moving.

The average time to sell a property (from the first day of marketing to legal completion) is just over four months, with ‘cold’ properties taking, on average, nearly six months (source: The Advisory).

Given the current political and economic climate, deciding to sell your property now would mean you are more likely to be moving home in early spring.

However, if you decided to wait until springtime, based on these average timescales to complete, you would be more likely looking at moving at the end of autumn to the beginning of winter.

Christopher Daw, Partner, Country Business, Knight Frank, said:

Trying to convince someone to move house during the depths of winter isn’t easy, which is why the property market springs to life as soon as the weather starts to improve.