Your August Newsletter

More landlords are needed to help tenants find homes

You may have heard how well the sales market has performed over the past couple of years, pushing prices up 12.4% nationally*. The rental market has followed hot on the heels of this trend, with around three tenants currently vying for each property.**

Compared to the previous year, the number of available rental homes has dropped by 9%, which has nudged up the average price by £150 per calendar month.*** This means tenants now pay around £1,088 outside of London or £2,193 PCM in the capital.

But what’s driving this steep increase in demand? There are several factors involved. Rising house prices may force tenants to rent for longer than planned, meaning fewer homes are circulating on the market. Almost a fifth of landlords report tenants are staying put for longer than in previous years.****

In addition, concern over upcoming rental reforms has prompted some landlords to take their properties off the market. Dwindling stock further encourages tenants to remain in their current rental while they search for somewhere else to live.

The fallout from the pandemic has also muddied the waters, with many people choosing to move back to urban centres or escape to the country to work remotely. The latter is partly responsible for the intense pressures faced by tenants in popular rural hotspots.

Without more landlords joining the market to ease supply, many people may be forced to stay in unsuitable accommodation, leave their local areas, or even risk homelessness.

The good news is that if you have a property to spare, now is a great time to get involved and reap the long-term rewards a solid rental income can provide. This is especially true if you’re letting in areas recently boosted by the Elizabeth Line or where supply is strained.

Curious about how much your rental property is worth in the current market? Our friendly team is ready and waiting to book your lettings valuation.

*UK House Price Index (ONS: April 2022).

**According to a recent report by Property Reporter

**Data from TwentyCI and Rightmove (early 2021 to early 2022).

****Property Reporter (June 2022).

1 in 10 homes currently selling within a fortnight

Are you thinking of selling soon? You’re probably wondering how long the process will take. Right now, your chances of achieving a fast sale are strong, despite the recent rise in interest rates.

This is partly linked to the high demand experienced by the property market since the pandemic, which has created a dip in the number of homes available nationwide.

Specifically, it takes a typical UK seller 97 days between listing their home and selling it subject to contract.* By breaking down the data, we see that 11% of properties only take two weeks to see the same result.

However, the picture does alter slightly depending on the region. For example, Scotland is proving to be a hot market, with fortnight sellers rising to 18%. This figure increases to a whopping 23% for Edinburgh homeowners.

The Southwest is another fast-moving region, which is unsurprising given the attention it received from buyers during the height of the pandemic. Post-COVID, demand in this area is still rocketing, boosting prices by 17% since 2019.* 13 of properties here sell within the two-week period, and 16% for Bristol.

Meanwhile, the East of England, the West Midlands, and Wales sit just above the average at 12%. Other hotspots include Portsmouth and Birmingham. Interestingly, the London market is a little slower, with buyers snapping up 7% of properties within a fortnight.

While some forecasters predict a slowing down of the market as interest rates rise to tackle inflation, the short-term market remains robust. Listing now could be a great way to maximise your chances of a fast and profitable sale.

Not sure how much your home is currently worth? Book a valuation today to find out.

*Data sourced from an analysis by estate agent comparison site, GetAgent

*Rightmove (July 2022).

Seller activity is rising as prices continue to grow

There’s been a 14% increase in houses coming to the market in recent weeks as sellers look to capitalise on record asking prices.* This is a blessing for the hordes of eager buyers struggling against low supply. But what effect will this trend have on you?

If you’re a buyer who has been frustrated in your search for your dream home, your fortunes may soon change. Valuation requests peaked at the end of June, reflecting the levels seen in May 2021, so the perfect property may arrive on the market imminently.

Although it’s unlikely that house prices will fall any time soon, buyers may still benefit from the reduced competition when making offers.

On the other hand, sellers remain well placed to secure a fast sale while achieving their asking price. Yes, the number of sales has begun to return to pre-COVID levels, but demand is still strong enough that you could find a buyer within a mere 32 days.

If you’re selling to buy a new home, the boisterous market conditions mean you should consider listing your current property before you start your search. Hedging your bets by waiting until you find ‘the one’ could mean losing out to buyers who can place a serious offer before you’ve even chosen an estate agent to sell your home.

Still not sure whether it’s time to move? Getting an up-to-date valuation for your property will give you the information you need to make an informed decision.

Contact us to book a valuation or register your details today. You can also visit our website to browse our current range of properties – with more expected to arrive soon!

*Data from a recent analysis by property portal Rightmove.

Will the property market slow down?

The last few years have seen a sharp hike in house prices across the country, but can this rise be sustained? While recent data from the Land Registry shows house prices were up by 12% since April last year, some believe we’re heading towards a slowdown.

So, what’s going on? While the market spiked in 2021 thanks to the well-publicised stamp duty holiday – fuelling sales as buyers rushed to save significant sums of money – it calmed over the winter of 2021 before slowly rising again across the UK.*

However, in May this year, the number of sales returned to levels seen just before the onset of the pandemic. But what has driven this reversal?

The cost of living crisis appears to be playing its part by straining household budgets. Combine this with rising house prices and mortgage interest rates, and you have a recipe for dampening buyers’ spending power.

This doesn’t necessarily mean prices will fall dramatically. Big names across the industry – such as Propertymark and Rightmove – are still reporting a mismatch between demand and supply, which is keeping prices buoyant for now. All in all, experts predict that prices may only increase by between 1–5% over the next year or two.**

What does this mean if you’re planning to sell? The good news for homeowners is that no one expects prices to plunge over the medium to long-term. But if you’re hoping to maximise your sale price, striking while the iron’s hot may pay off.

Our team is ready to provide tailored advice that reflects your unique situation. Contact us today to discuss your options and book a valuation.

*Based on data provided by HMRC (June 2022).

**Predictions provided by Rightmove, Zoopla