OnTheMarket: Buyers should transact before the General Election season

OnTheMarket president Jason Tebb has cautioned buyers against waiting for an interest rate cut and General Election before making a transaction decision.

Tebb said that it is understandable that buyers may be waiting for inflation to fall further and the cost of borrowing to drop, but he warned there is a limited timeframe to transact before the General Election when there could be more uncertainty.

He said: “History tells us that market activity tends to slow the closer we get to a general election, with the uncertainty resulting in buyers and sellers holding off until the outcome is known.

“Those keen to buy or sell this year may therefore want to get on with it sooner rather than later, particularly as the first quarter is already behind us and transactions can take longer than expected. 

“While the prospect of lower interest rates is tempting, no-one knows when this will happen and hesitating now could mean missing out on the best time of year to buy and sell property. 

“It may make sense to pay a little more on the rate and make hay while the sun shines, rather than worrying about a quarter-point reduction at some point and attempting to transact in quarters three or four when there is also the distraction of a General Election to contend with.”

It comes as the latest OnTheMarket Property Sentiment Index showed confidence among buyers and sellers about moving in the next three months remained level at 65% and 60% respectively.

The research found that 45% of properties were Sold Subject to Contract (SSTC) within 30 days of first being advertised for sale in March, the same level as last year.