Property Bulletin: October Edition

UK property prices at a 4-year high for homeowners

Nationwide’s most recent House Price Index has uncovered a four-year high price growth in the UK – meaning that your home could be worth more than ever.

Analysis from their report shows that average property values grew by 5% annually in September and 0.9% monthly, taking the national average to £226,129.

This is the highest annual price growth we’ve seen since September 2016.

The South West was the strongest performing region (5.5%), closely followed by Outer Metropolitan (5%),

Outer South East (4.8%), Yorkshire and Humberside (4.6%) and London (4.4%) – which all made the top five in terms of price growth.

Average prices in the capital have now hit a record high of £480,857, which is 57% above their 2007 levels.

Meanwhile in the rest of the UK, price growth has been reported as follows: North (4.2%), East Midlands (4%), Wales (3.8%), West Midlands (3.1%), North West (3%) and East Anglia (2.7%).

Whilst all regions have shown an annual increase, the areas demonstrating the smallest growth percentage are Scotland and Northern Ireland at 2% and 1.5%, respectively.

What can we take away from these findings?

“Housing market activity has recovered strongly in recent months,” comments chief economist at Nationwide – Robert Gardner – who suggests that behavioural shifts are a key contributing factor as people reassess their housing needs in 2020.

Whilst Iain McKenzie, chief executive of The Guild of Property Professionals, claims that: “the current rise in housing prices shows a short-term spike with it returning to a more fluid marketplace in the next two or three months.

“The housing market has been resistant for a number of years despite having to contend with things such as Brexit and now the pandemic.”

For this reason, McKenzie predicts that although there will be bumps down the road, he suggest that “if there is a decline in the future, it will be a short decline and the market should bounce back very quickly because of positive consumer sentiment and pent-up demand."

Have you made the decision to sell your house this year?

During an updated market appraisal, we will assess how your home will perform on market, as well as what price you can realistically expect to achieve in light of recent demand and price growth.

For the full report, visit: www.nationwide.co.uk/about/house-price-index/headlines

The best investment you can make this year is a buy-to-let property

The rental market has been extremely active this year, bouncing back from its temporary closure in record speed.

Could now be a good time to invest and grow your portfolio as a landlord?

Rental prices are up

In the past month, UK rental prices have increased by 2.1%, now standing at £987 PCM on average – up 1.5% from last year.*

Following analysis taken across the country, it was found that ten out of twelve regions have shown an increase in rental prices since 2019, with two of those areas showing an increase of over 5%.

The South West has demonstrated the strongest increase, with an average 6.6% boost.

Whilst London’s rental market does not show an increase, at an average rental value of £1,653 per month, landlords based in the capital should still expect healthy returns from their investments this year.

Enquiries from tenants at their highest

Recent analysis from ARLA Propertymark has revealed that registrations from new tenants have shot up to 101 per lettings branch last month, breaking July’s record of 97 newly registered applicants.

We’re simultaneously seeing average tenancy lengths at an all-time high for August, with tenants staying put for 21 months.

One reason behind these figures is that nearly half of first-time buyers are deferring their plans to buy; either due to financial difficulties (41%) or because lockdown has prompted them to reconsider their priorities (42%).**

Mortgage rates remain incredibly low, with high demand and savings making it an opportune moment to consider your first or next step as a buy-to-let investor.

Contact us for more information.

*Source: HomeLet Rental Index, Estate Agent Today

**Source: Aldermore

13-year high for property market activity

The post-lockdown property market has been thriving since its release from lockdown, with sales and mortgage approvals at a 13-year high.*

If you’ve been putting off your sale in 2020, there could not be a better time to bring your home onto the market and benefit from optimal selling conditions.

More sales have been agreed since 2007

Housing demand has increased by a third year-on-year, whilst sales per estate agency branch has seen a 44% boost.

In terms of sale per office, this works out to approximately 13 properties sold in one month, compared to nine for the same period in 2019.

The average number of potential buyers scoping out the market has also risen.

In June, approximately 379 house hunters were recorded per branch, increasing to 428 following the announcement of the stamp duty holiday in July 2020.

This 13% increase in house hunters is great news for the housing market, especially as it is expected to remain steady throughout autumn.

Mortgage approvals

From July to August, mortgage approvals rose from 66,300 to 84,700, propelling the sector to a 13-year high according to the Bank of England.

Analysts have commented that lower borrowing rates, fewer holidays abroad and the enticement of up to £15,000 in stamp duty savings have upended what would usually be a relatively calm month for the property market.

Understandably given the circumstances, the year-to-date approval total is at a lower rate due to the market closure this spring.

That said, great strides are being made by lenders and agents to ensure a smooth transaction process for sellers and buyers, with progress in the last few months demonstrating that shared commitment to get people moving responsibly again.

In light of favourable rates and government schemes currently on offer for homeowners, we’d advise that anyone considering their next move start the process now to ensure that you’re able to reach completion before the stamp duty deadline in March 2021.

*Source: NAEA Propertymark

How to have a stress-free move

Buying a new property has the potential to be stressful, and we get it! To help you out, we have put together this guide of helpful tips, based on real buyers’ experiences.

1. Planning

It might seem obvious, but lack of preparation can be the biggest hurdle for homeowners and buyers, with two-thirds of viewers forgetting to bring pre-prepared questions when taking a look around a new property.

Put together a criteria of your non-negotiables and the features or items that you’re willing to compromise on, and make sure you’re spending your time wisely. A thorough search online will give you a good starting point finding suitable properties, but you can also reach out to agents directly, as they may have similar properties you’ve overlooked.

2. Understanding the process

Next, it’s about ensuring you have set realistic time expectations and have set aside the required amount needed for the deposit.

Not everything will go according to plan every time, so make sure you’re aware of potential blockers that could get in your way.

Market conditions are strong right now, but for buyers to take full advantage of the recently announced stamp duty holiday, they need to be going through the process right now, as increased demand could mean you face delays further down the line.

Likewise, you don’t want to under-plan for your budget. Take into consideration average fees for surveyors and conveyancers so you don’t overstretch yourself.

3. Build connections

Another great idea is to get to know the seller and their agent, as this has the potential to make them favour you as a trusted buyer.

Similarly, talking to neighbours when viewing a property is invaluable. You can obtain information about the local area, as well as inside knowledge about potential problems about the property.

Along the same lines, checking local broadband speeds, phone signal and parking permits is a great way to be prepared prior to your moving date.

4. Preparing your own sale

If you’re looking for a quick sale, staging your house correctly is extremely important.

Freshening up paintwork and completing any repairs or improvements will add tremendous value to your home.

Well-staged homes have been proven to sell for higher prices than for those that are not. So before having your house photographed, make sure each room is captured in its best light, and avoid having any seasonal decorations up, as this could date your listing.

5. Moving in 2020

Since the market reopened, we’ve seen phenomenal levels of activity as those living under lockdown rush to buy somewhere with more space, a bigger garden and an office.

The best way to reduce stress when buying or selling this year is to make sure you’re completely comfortable with the pandemic measures that have been put in place by agents.

This includes any measures to limit human contact, as well as remote processes and online marketing strategies to reduce the number of people meeting you in-person.

To find out how we’re safely conducting sales and lets this month, contact us.

UK property prices at a 4-year high for homeowners