There’s a lot to be said to listening to what Royal Institution of Chartered Surveyor members (RICS) say about property prices. Rather than absentmindedly hearing what estate agents think. That’s because RICS bases its opinions on hard facts, when it says the UK property boom end is nigh.
RICS Report Predicts End of UK Property Boom
We’ve been watching property prices in the South of England since RICS published its UK Residential Market Survey in October 2022. The writing really does seem to be on the wall, as the UK economy lumps on after COVID.
Mind you, this could be good news for property inheritors, and bad news for UK Revenue and Customs officials. That’s because the net value of smaller estates with low-value properties could dip below the £325,000 inheritance tax threshold as the UK property boom slows down.
Mind you, we shouldn’t doubt officials down at the tax office are already onto this. This could be the deciding factor to elect for a professional Red Book RICS property valuation. Compared to taking a chance with a best-guess gamble, and drawing down the evil tax eye.
What the RICS Report Says in a Nutshell
- There has been a further weakening in market conditions. Buyer demand and agreed sales are falling at a gathering pace. House price increases are icing over at national level. Meanwhile, the letting market is buoyant with increasing tenant enquiries.
- By strict contrast, new buyer interest continued to tumble across the previous six months. The October 2022 report is the second in a row to report negative buyer demand across the entire UK. This suggests a fresh RICS property valuation may be highly desirable while the market remains stagnant.
- There’s further evidence of the end of the UK property boom in the fall in new property listings for sale. Homeowners may be hanging on tight as they prepare to weather the storm. This trend maps across to the lesser rate in market appraisals, as reported by 37% of survey respondents.
- And finally, agreed sales were firmly negative according to 45% of respondents during the period under review. Taking all these factors into account, the RICS October 2022 report foresees a weak market during the next six months. But this, they say could continue for at least a further year.
Commentaries on State of UK Property Boom
Fluctuating property prices put marginal deceased estates on a knife edge in terms of the threshold for UK Inheritance Tax. Delays in probate applications have thankfully fallen to an average six weeks, although online applications appear to be taking longer.
Certainly, it can make sense to get probate applications in soonest, while average property prices are down with this reflecting in lower RICS property valuations too. We don’t have a crystal ball, although we do agree with some of This is Money’s predictions on 2 December 2022.
Trends We Might Expect in 2023
CURRENT SITUATION
- UK property buyers are unsure. Their living expenses are rising and the job market is increasingly uncertain.
- However, it is equally true the Chancellor cut Stamp Duty Land tax, and doubled the standard nil-rate band to £250,000.
- Moreover, he also increased the first-time-buyer threshold to £425,000 for property prices up to £625,000.
POSSIBILITIES AND PROBABILITIES
Today’s Conveyancer predicts demand will remain stagnant with historic prices under threat. Meanwhile rents are rising sharply in response to higher tenant demand. However, the Renter’s Reform Act is still chugging through the process, with tenants remaining vulnerable to no-fault evictions.
How Avery Associates Could Assist Urgent Probate
Perhaps you are an executor, or an heir hoping to get a probate application in soonest. Whatever your reason, you need to get the estate accurately valued, so you can settle any inheritance tax and lodge for probate.
Avery Associates Can Assist With Valuations
Accurate property valuations are essential, given their high proportion of many estate. RICS ‘Red Book’ Valuations are the gold star standard in the UK property market. Avery Associates has a panel of registered RICS members in good standing throughout the South of England.
Our Professional Chattel Valuation Team
The UK property boom may be over for now. However, the value of collectibles chattels should respond in a positive direction, as an alternate store of value. Please give us a call on 0208 640 0044, or 0800 567 7769 to discover the depth and quality of our service. We are acknowledged experts and the go-to-choice for many solicitors in South of England.
Recent Avery Associates Review
This truly is a ‘one stop shop’ for all things relating to probate valuations and clearance. Jeffrey valued the contents and arranged a RICS Surveyor to carry out a ‘Red Book’ valuation. Job done! During the entire process, I was kept informed. I warmly recommend the Avery Associates team. J Schon
