Dominic Parravani of Durrants looks at how to manage the property market when world events seem overwhelming.
If ever we needed a crash course on how world events affect our daily lives, the past few months have provided us with a masterclass.
From the Russian invasion of Ukraine and its economic aftermath to our monarch and prime minister changing in a few weeks, there has been national bewilderment.
Of course, our press has done a great job in alerting us to all the dreadful things that could make things even worse, and this fanning of the flames of fear has sent shockwaves through all sorts of markets, including property.
But there are property market drivers that neither the press or the Russian president can affect because they have no control over such matters. These are the A to D of the property market.
A is for ambition – the personal ambition to live somewhere better, bigger, smaller, prettier, more convenient, more rural or urban.
B is for birth – as our families grow, we need more space.
C is for consolidation – people getting together to cohabit or downsizing after children have left home.
D is for death, debt and divorce – those three drivers on their own stimulate a high proportion of movement in the market.
Back in the 1980s we learned that the people we could rely on in a tough property market were ourselves, our families and our friends. Also, our estate agents. The reference to estate agents is not a glib remark: right now, with interest rates rising, lenders panicking, and buyers and sellers rightly concerned, it is the steady hand of an experienced estate agent that will provide focused calm and wise counsel.
If you are wondering about the right time to buy or sell property, remember the A to D of the property market. Individually we are not driven by war or a fallen monarch, and we shouldn’t be persuaded by rising or falling house prices. Instead, we should be driven by what is best for us as individuals.
When is the best time to buy or sell a property? Within the constraints of affordability it should be when it is most suitable for us and our families.
