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Property Market Update

May 21, 2024

Record Highs in Rightmove House Price Index

The May 2024 Rightmove House Price Index reveals record-breaking trends in the UK property market. The average asking price for properties has surged to a new high of £375,131, an increase of 0.8% (£2,807) from the previous month. This growth is attributed to the Spring selling season, which typically exerts upward pressure on prices. Despite this rise, the market remains sensitive, with average asking prices only 0.6% higher than a year ago. The top-of-the-ladder sector, encompassing large homes, leads this growth with a 1.3% increase compared to last year. Pent-up demand from buyers who postponed their plans last year is driving increased activity, even though mortgage rates remain high. Sales agreed in the first four months of 2024 are 17% higher than the same period in 2023, surpassing the 12% increase in new sellers. However, the lengthy process from sale agreement to legal completion remains a challenge, averaging 154 days. Sellers hoping to move by Christmas should act now, as it takes over seven months from listing to completion. Rightmove's data shows that properties priced correctly from the outset sell significantly faster, averaging 32 days to find a buyer, compared to 112 days for properties needing a price reduction. For first-time buyers, affordability remains a key issue. The index considers average mortgage payments, rent, and borrowing capacity based on earnings to evaluate affordability trends. Rightmove’s index, based on data from over 13,000 estate agency branches, provides real-time insights into the housing market, reflecting asking prices at the start of the selling process. #UKHousingMarket #PropertyPrices #RightmoveIndex #RealEstateTrends #HomeBuying #SpringSellingSeason

Opening The Gates - Episode 4: April 2024 UK Property Market Update

Welcome to the fourth installment of "Opening The Gates: UK Property Market Update." In this episode, I delve into a comprehensive review of the April 2024 property market, offering a detailed comparison with data from both April 2024, April 2023 and April over recent years. My primary goal is to equip estate agents with invaluable insights, expert analysis, and the most current information on the ever-evolving UK property market. Throughout the episode, I'll be drawing from a diverse array of sources, including property portals, lenders, Land Registry, and more, to provide a holistic perspective. ? Join a community of proactive estate agents committed to staying ahead of the curve by subscribing and hitting the notification bell? Stay informed about the latest developments shaping the UK property market landscape. #OpeningTheGates #UKPropertyMarketUpdate #EstateAgentInsights

April 2024 UK Property Market Update

We are now a third of the way through the year, Spring has arrived (kind of) and the property market is certainly starting to show signs of heating up even if the weather isn’t quite yet! The number of properties for sale, new listings entering the market and sales being agreed were all on the up in April when compared to previous years, which is evidence that confidence is returning to the market. Both the average asking prices of new properties coming to market and those having sales agreed were also on the rise in April 2024. Mortgage approvals were on the up in March and hit their highest number since September 2022. All of the above are signs that mortgage rates plateauing at around 4.5% (5-year fixed rate at 75% LTV) and mortgage payments being 61% higher than three years ago are not dampening the appetite of people wanting to move home or causing property prices to fall. There also appears to be an increased commitment from serious sellers with a lower number of properties withdrawing from the market in April and a higher number of sellers reducing their asking price to entice buyers. However, it must be noted that an increase in the number of properties reducing their asking price also shows that some sellers are perhaps being too optimistic with their initial asking prices. Whilst there is positive sentiment in the market, sellers must remember that buyers have more choice, and lower budgets, which means if you do not price competitively they will shop elsewhere. Rightmove have reported that reduced properties are 20% less likely to sell versus those that price correctly from the outset and those that end up selling will take 2.5x as long to do so. This is also evidenced by the number of sales falling through being higher than in recent years, which means if things are not quite right a buyer will walk away from a transaction knowing there are other options for them to buy. In conclusion, we appear to be in a pretty stable and normal property market if there is such a thing, where both buyers and sellers are making the decision to make a move if the price and conditions are right. This is not such a bad thing following the ups and downs of the property market between 2020 and 2023. Perhaps a prolonged period of stability in the market will give potential homemovers the confidence to enter the market. If you would like to discuss the market in more detail, please do feel free to contact me and I will be very happy to help. Thank you for reading.