After weeks of speculation and counter-arguments regarding the Autumn Budget, the announcements were formally made on 30 October, but the uncertainty in the lead-up had a marked impact on the UK property market.
At one point in history, there was an understanding that not only would members of Parliament refuse to divulge what rumours were circulating at Westminster about an upcoming Budget, but also the press would generally hold back on printing anything since there was little to comment or speculate on.
Nowadays, successive governments regularly court the press by 'leaking' ideas that might or might not be in the final Budget announcement, allowing reporters to feast on the titbits of information and speculate about what such announcements might have on the general economy and, most important to most of the public, what it would mean to their own finances.
While such an activity can allow the Chancellor of the Exchequer to gauge what the public reaction might be to any fiscal policies under consideration, it does have a negative impact on the public's support of the economy and the job the government of the day is doing to protect individual finances.
The practical upshot is that, after weeks of surmise and speculation where the message is generally negative in nature, the public's and business's confidence in the handling of the economy takes an eroding dent.
How Budget uncertainty affected UK asking prices
This is what has been the case with asking prices in the weeks leading up to the Budget. As reported in Estate Agent Today, while the picture is slightly pessimistic with asking prices generally dropping according to data in the most recent House Price Index reports from the likes of Zoopla and Rightmove, geolocation home search app The Property DriveBuy has delved further into what the data is telling us.
The principal finding confirms what the standard House Price Index from the finance companies and house-selling portals shows: sellers were taking an axe to the price of selling their home as they tried to attract buyers in what had become a stagnant property market in the wake of speculation about the Budget.
One of the key findings is that, for homes that had been listed for sale over a 30-day period that reduced their asking price since first being put on the market, the number rose by 14.8% since the middle of October.
Which cities saw the biggest asking price reductions?
Because this is an average, the data analysis by The Property DriveBuy shows some startling differences in certain cities, where the reduction in asking prices increased more than 20% in the same period:
Location | Reduction |
Sheffield | 50% |
Brighton & Hove | 44% |
Cardiff | 35.7% |
Leicester | 28.6% |
Manchester | 21.8% |
Newcastle-upon-Tyne | 21.1% |
Liverpool | 20.6% |
Source: The Property DriveBuy
If you're looking at properties in any of these cities, these price reductions represent a genuine opportunity. Conveyancing in Sheffield, conveyancing in Manchester and other major cities has seen increased activity as buyers move to secure reduced asking prices before the market rebounds.
As Steve Foreman, chief executive of Property DriveBuy, commented on the findings:
"Britain's housing market is clearly feeling the strain of uncertainty in the run up to the Autumn Budget.
"With momentum slowing and buyer confidence dipping, we're seeing more sellers make the difficult decision to reduce their asking price in order to secure interest.
The sharp rise in price-reduced listings across major cities shows just how sensitive the market has become to speculation around potential tax changes, particularly at the higher end.
Until there is clarity, both buyers and sellers are treading carefully, and this caution is now filtering through into the day-to-day pricing of homes coming to market.
These conditions do not point to a market in distress, but they do underline how quickly sentiment can shift when major fiscal decisions are on the horizon."
What this means for property buyers and sellers
Whether the formal Budget announcements will have a more positive impact on house prices, specifically on what sellers feel obliged to do to attract potential buyers, remains to be seen.
And, while the published data on asking prices looks doom-laden from a financial standpoint for sellers, it does mean that the clever buyer can snap up a bargain.
If, as some commentators are suggesting, the Budget is less impactful than had previously been thought to be the case, no doubt we'll be seeing prices bounce back in due course.
For buyers: Acting quickly when you spot a reduced asking price is essential. Property that's been reduced once may attract multiple offers, so having your conveyancing solicitor lined up in advance means you can move faster than competing buyers.
For sellers: Even if you've reduced your asking price, choosing an efficient conveyancing service can help speed up the transaction and secure your sale before market conditions shift again.
Getting your conveyancing sorted during market changes
Whether you are buying or selling a home, you'll want to know that the legal process is being managed with you and your needs at the centre, a top-quality service provided at a value-for-money price.
Our conveyancers will start work on your plans as soon as you agree to the quotation and appoint them to represent you. Homeward Legal provides a fixed-price quote that will not change for the standard conveyancing process, which means you can budget effectively for your move.
In addition, Homeward Legal operates a 'no completion, no fee' promise, which ensures that should the purchase or sale not go through to completion, no payment is required.
Seen a price reduction on your dream home? Call to get your conveyancing quote started, or get a quick quote online.