The dreaded “R” word! We are now into full-on, long-term speculation that requires a look beyond an unconfirmed period of short-term uncertainty. Given that we won’t even know the effects of that until the autumn, it’s unwise to dwell too long on something that may very well never happen, so we’ll take just a very short look.
Generally, the immediate effect of a recession on the property market is that lenders and first-time-buyers press pause, which starts a ripple effect. The beginning is usually the worst as everyone takes a deep breath and braces themselves, but people’s lives do have a habit of moving forward regardless of economic conditions.
It’s far from impossible to sell your property in a recession, but it calls for determination and realism. Most moves are people trading up, which makes a larger fall in house prices very profitable, as long as you can see beyond the sale price of your existing home. That can be a challenge, but if the overall numbers work, you may be able to make a move that was otherwise impossible (and more than worth your while).
Let’s leave that discussion there until we know the next chapter of Covid-19 and how our daily lives will be allowed to progress. Whatever that brings for the property market, we are here to give you straightforward advice and support in helping you make the right decisions about your move.
