Home owners drop property prices amid spike in sales

An escalating number of buyers are taking advantage of the recent sales spike in property ahead of Boris Johnson's 31 October Brexit deadline.

The number of homes sold in the last month jumped more than six per cent, which is the highest seen over the typically slow summer period since 2015.

Buyers are testing the resolve of many sellers as they become more willing to drop their price in order to secure a sale.

In August, the average price of a home fell by £3,192, or one percent, to around £305,500.

It may be a great opportunity for buyers but legal issues and contractual red-tape are threatening to cause problems for both buyers and sellers.

Miles Shipside, a director and housing analyst at Rightmove, said: 'It's an anxious time for all involved once a sale has been agreed subject to contract, and that includes the estate agent whose livelihood depends on the sales going through rather than falling through.'

He adds: 'A major factor that might help these moves to actually happen is that it seems more buyers and sellers are convinced it's a good time financially to do a deal, plus wanting the certainty of getting the deal signed and sealed because of the next looming Brexit deadline.'

As buyers and sellers watch the swings in the housing market ahead of Bexit, all eyes are on new Chancellor Sajid Javid and his future policies.

Javid was reportedly considering switching the stamp duty burden from buyers to sellers, as he considers a major shake-up of taxes ahead of his first Budget.

Javid, who moved into Downing Street at the weekend, was said to be 'looking at various options' when it comes to stamp duty.

Currently, stamp duty is paid by the buyer on residential properties over £125,000, and there are various bands depending on how much a property is worth.

The spike in sales may be short lived depending on if a snap election is called in the coming months.

No date has yet been set for the first Budget of the new Government.

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