UPDATED

Homeowners not worried about market cliff edge... But won’t sell if house prices dip

NEWS
COMMENTARY
GUIDE

We give market commentary when journalists or news outlets approach us directly for comment on specific topics. We share our commentary here too. See below.

This week we've surveyed over 1,000 homeowners, and they've told us they aren’t worried about the potential cliff edge facing the UK property market... but that they won't sell if property prices do drop.

Homeowner Survey: House Price Dips

"

Preparing for a market dip

Despite the Government staggering the deadline of the extended stamp duty holiday, a removal of the incentive is expected to cause transaction numbers to plummet, bringing property price growth along with it.

Despite this, our research this week shows that just 14% of homeowners are worried about the value of their property falling when the current stamp duty holiday does expire.

Last week, the latest Halifax House Price Index revealed that house prices have hit record highs in March, up 6.5% on last year alone. Hardly surprising then, that 67% of homeowners also stated that they think current house prices are too high (with the average buyer now paying nearly £255,000 to get on the ladder).

Homeowners won't sell if prices fall from this peak

However, having done the hard work of saving a deposit and tackling the often lengthy, uncertain and stressful property transaction process (there's no "sell house fast" in the ordinary property market), the majority of homeowners understandably want to realise the full potential value of their investment.

We found that 68% of homeowners would actually refrain from selling their home in the future if it was worth less than the current market value. This suggests that should the market tumble over the cliff edge come September, a drop in property values could cause the cogs of the UK property market to stop turning.

Small summary of the main survey findings

UK Homeowners: A split personality

Matthew Cooper, Founder & Managing Director of Yes Homebuyers, commented:

“It’s interesting to see the split personality of homeowners when it comes to property and their feelings towards it as both an aspirational achievement, and as an investment asset.

On the one hand, homeowners remain undeterred about any short-term market decline as many have invested in their home with a long-term view. They generally realise the property market is cyclical in nature, so while house prices have gone up, they will inevitably come down, but in the long run, they’re likely to see an increase in value.

However, when it comes to selling and actually securing a return on their investment, they’re unlikely to do so at a loss unless they absolutely need to move.

This suggests that while homeowners are generally unphased by a potential cliff edge, we could see market activity dry up should the market topple over come September.

With the Government artificially fuelling the market to such a heightened level for over a year now, we are undoubtedly going to see a bumpy landing when the stamp duty holiday finally does end. The question is, to what extent will this impact the market?”

Image containing a quote from Matthew Cooper, founder and MD of Yes Homebuyers, summarising some findings from this article.

"

Preparing for a market dip

Despite the Government staggering the deadline of the extended stamp duty holiday, a removal of the incentive is expected to cause transaction numbers to plummet, bringing property price growth along with it.

Despite this, our research this week shows that just 14% of homeowners are worried about the value of their property falling when the current stamp duty holiday does expire.

Last week, the latest Halifax House Price Index revealed that house prices have hit record highs in March, up 6.5% on last year alone. Hardly surprising then, that 67% of homeowners also stated that they think current house prices are too high (with the average buyer now paying nearly £255,000 to get on the ladder).

Homeowners won't sell if prices fall from this peak

However, having done the hard work of saving a deposit and tackling the often lengthy, uncertain and stressful property transaction process (there's no "sell house fast" in the ordinary property market), the majority of homeowners understandably want to realise the full potential value of their investment.

We found that 68% of homeowners would actually refrain from selling their home in the future if it was worth less than the current market value. This suggests that should the market tumble over the cliff edge come September, a drop in property values could cause the cogs of the UK property market to stop turning.

Small summary of the main survey findings

UK Homeowners: A split personality

Matthew Cooper, Founder & Managing Director of Yes Homebuyers, commented:

“It’s interesting to see the split personality of homeowners when it comes to property and their feelings towards it as both an aspirational achievement, and as an investment asset.

On the one hand, homeowners remain undeterred about any short-term market decline as many have invested in their home with a long-term view. They generally realise the property market is cyclical in nature, so while house prices have gone up, they will inevitably come down, but in the long run, they’re likely to see an increase in value.

However, when it comes to selling and actually securing a return on their investment, they’re unlikely to do so at a loss unless they absolutely need to move.

This suggests that while homeowners are generally unphased by a potential cliff edge, we could see market activity dry up should the market topple over come September.

With the Government artificially fuelling the market to such a heightened level for over a year now, we are undoubtedly going to see a bumpy landing when the stamp duty holiday finally does end. The question is, to what extent will this impact the market?”

Image containing a quote from Matthew Cooper, founder and MD of Yes Homebuyers, summarising some findings from this article.
See data & sources

Survey of 1,002 UK homeowners carried out by Yes Homebuyers on 13th April 2021.


IN THE NEWS

Browse coverage of this news piece

Our research, guides and commentary are picked up weekly by journalists at national and regional news outlets. See where this one has been covered so far.

Property ReporterProperty Reporter
April 15, 2021
PRINT ONLY
Homeowners unphazed about looming market cliff edge
London Loves PropertyLondon Loves Property
April 14, 2021
PRINT ONLY
Homeowners not worried about market cliff edge
Luxurious MagazineLuxurious Magazine
April 14, 2021
PRINT ONLY
If House Prices Dip In 2021, UK Homeowners Will Stay Put And Wait
The Property DailyThe Property Daily
April 19, 2021
PRINT ONLY
Homeowners not worried about market cliff edge, but won't sell if house prices dip
UK Property News HubUK Property News Hub
April 19, 2021
PRINT ONLY
Homeowners won't sell if house prices dip

A BIT ABOUT US...

Selling your home to Yes Homebuyers

  • Yes Homebuyers buy your home directly from you so you can sell your house fast and avoid waiting around to find a buyer on the regular market. 
  • We offer flexible timeframes to suit you and on average, complete a sale within 30 days. 
  • Yes Homebuyers' quickest completed purchase was made in six days. 
  • We guarantee the price we will pay, unlike some buying platforms who reduce their offer shortly before completion.
  • There are no fees or costs involved and we cover all legal fees involved.
  • There are no contracts or tie-ins even if you accept an offer, and no viewings to take care of.

IN THE NEWS

Latest Insights

We share our experts' weekly research articles free of charge.

Timely insights and analysis from our experts

Covering today's most important property topics

Featured weekly in national and regional news

As featured in

...AND MANY MORE

Browse latest articles

See all News, Press Coverage, Commentary & More
Read more >
FREE VALUATION
No Obligation

Ready for a faster house sale?
Let's get started.

Get An Offer