If you own a property and are considering selling up, you will almost certainly be aware of the mini property market boom. This has resulted in the average property price increasing by 7.5 per cent year-on-year, hitting a new record high, according to Halifax bank, as well as an estimated 140,000 more home sales than last year currently waiting to be completed.
The issue of trying to sell a flat in the current circumstances…
However, not all is so rosy if you are looking to sell a flat. Covid-19, the subsequent lockdowns and our new found remote way of working, has led to a surge of flat-owners wishing to sell up and move to somewhere with more space and more land, or at best with a garden / outdoor space.
The issue is that with so many having the same idea, the demand for flats has diminished and owners, unlike those selling a house, are finding it difficult to find a buyer. This is of most concern to those who don’t just have a desire to move, but a strong need, such as a new job in a different location, attempting to be in the catchment area of a school in time for the application deadline or needing to sell for financial reasons.
Most recently, there has even been reports (in The Times) of some estate agents not wishing to take on any more one or two bedroom apartments unless the vendors are willing to accept a significantly reduced price because supply is far outweighing demand.
There are also three other factors at play which are contributing to the demise of the flat:
Typical buyers – Since flats are more affordable on the whole than houses, they have always been a good option for first-time buyers taking that initial step onto the property ladder. Unfortunately, many young people work in sectors which have been most impacted by the pandemic including hospitality, retail and travel which has contributed to the decline in demand.
Cladding – Many buyers have been prevented from purchasing flats in buildings which have cladding that has not yet had an EWS1 form signed off to prove the building is safe. (Read more in our blog HERE)
Leasehold Scandal – Four of Britain’s biggest developers are currently being investigated after buyers argued they are caught in a leasehold trap of rising ground rents and unfair fees.
Of course, there will always be a market for flats, and in time it is likely we will see a resurgence in demand once again. However, if you are in a position where you need to move now and are struggling to sell, We Buy Property will review your property and may be able to make you a cash offer.
To have a no obligation chat about your circumstances, Get in touch with one of the team on:
Phone: 0207 449 9797