I Am The Agent Blog - Property Market

UK House Price Index – March 2024

info@iamtheagent.com — Wed, 20 Mar 2024 12:16:00 +0100

Stronger buyer demand and sales as market marches into Spring

• The average price of newly marketed properties rises by 1.5% (+£5,279) this month to £368,118, higher than the historic average March increase of 1.0% and the biggest for 10 months as the market continues its recovery after a muted 2023.

• The positive start to the year continues, paving the way for a greater number of home purchases than last year:

• With average asking prices still £4,776 below the May 2023 peak, more are seeing a window of opportunity to buy.

• The number of sales being agreed is now 13% higher than at this time last year.

• Buyer demand is now 8% above last year, led by the less mortgage-rate-sensitive larger homes sector and London.However, despite a better-than-expected start to the year, the market remains sensitive to pricing and external events:

• Rightmove’s real time data shows the growth in buyer demand was tempered somewhat by a lacklustre Spring Budget, with no direct help for first-time buyers or mortgage market innovations.

• The average time to find a buyer is 71 days, the longest at this time of year since 2019. Attractively priced properties are quickly being cherry-picked, but over-optimistically priced sellers are taking longer to find a buyer.

• The average 5-year mortgage rate is now 4.84% compared to 4.64% five weeks ago, as rates edge up to higher levels.

Affordability trends

The first-time buyer monthly mortgage payment is based on Bank of England data of the averages for 90% LTV two year fixed mortgages from lenders, and the average asking price of a typical first-time buyer home (two bedrooms or fewer) using our partners Rightmove House Price Index. The equivalent monthly rent is calculated using the same property types (two bedrooms or fewer). The affordability to buy a first home is based on the Average Weekly Earnings (AWE) dataset from ONS multiplied by 4.5 to get the typical maximum that a person can borrow from a lender. The average asking price of a typical first-time buyer home is taken from the Rightmove House Price Index.

Price & activity trends

Regional trends

Overview

The average price of property coming to the market for sale rises by 1.5% (+£5,279) this month to £368,118, as the market continues its recovery after a muted 2023. The positive start to the year continues, with Rightmove recording an increase in buyer demand, measured by people sending enquiries to estate agents, and stronger sales numbers than a year ago. This, alongside the usual Spring optimism, has put upwards pressure on prices. This month’s 1.5% price growth is notably higher than the average historic March increase of 1.0%, and the biggest monthly increase in prices for 10 months. However, average asking prices are still £4,776 below the May 2023 peak and the increase in buyer activity suggests that more are seeing a window of opportunity to buy. Higher activity at the start of this year compared to last year must also be looked at in the context of the more cautious start to 2023. Rather than the start of another market surge, the signs are that overall activity levels have now returned to steadier pre-pandemic norms. However, the elevated level of mortgage interest rates mean that the increased activity is skewed towards those buyers who are less sensitive to higher mortgage costs.

Since the beginning of March, the number of sales being agreed is 13% higher than at the same time last year, continuing to pave the way for a higher number of transactions this year than the one million in 2023. Leading these higher sales agreed numbers is the less mortgage-rate-sensitive, top-of-the-ladder sector, where agreed sales are now 18% higher than last year. It is also this largest homes sector which is driving more people to get in touch with estate agents than at this time last year. In March so far, buyer demand for top-of-the ladder properties is 12% higher than the same period last year, compared with 8% higher overall for all property types.

London has seen the biggest increase in buyer demand, both overall and for top-of-the-ladder properties, compared to this time last year. The return to the office, wage increases, stable house prices and the slowing of inflation have all played their part in increasing buyer interest in living in the capital again. However, agents report that despite this better-than-expected start to the year, the market is still sensitive to pricing and external events. For example, last week’s lacklustre Budget, with not one measure announced to directly support first-time buyers or help the mortgage market, has tempered the growth we were seeing in buyer demand. Rightmove’s real time data shows an immediate pause in interest from some buyers following the Budget, in response to the disappointing scarcity of housing announcements. The average time to find a buyer is now 71 days, which is the longest at this time of year since 2019. Agents report that buyers are quickly cherry-picking attractively priced properties, whilst over-priced properties are taking much longer, pushing the average time to find a buyer up . Meanwhile after several weeks of creeping rate rises, the average 5-year mortgage rate is now 4.84% compared to 4.64% five weeks ago, continuing to test buyer affordability

UK House Price Index – February 2024

info@iamtheagent.com — Wed, 21 Feb 2024 12:44:00 +0100

Early-bird buyers build market momentum but price sensitivity remains

Average new seller asking prices rise by 0.9% (+£3,091) this month to £362,839. The annual price change moves tentatively back into positive territory after 6 months of annual price falls, with prices up by 0.1% on a year ago.
Agreed sales in the first six weeks of 2024 are 16% higher than over the same period last year, and 3% higher than in the more normal market of 2019, indicating that many early-bird buyers feel that 2024 offers the right conditions to move.
The growing market momentum is also evidenced by the increase in activity of both buyers and sellers with 7% more new listings coming to market than last year, and a 7% upturn in the number of buyers enquiring.
However, the market remains very price-sensitive, and appears to be operating at two speeds, with properties that are priced accurately being snapped up by budget-conscious buyers, whilst over-priced properties are left on the shelf:
- It’s taking more than two weeks longer to find a buyer than at this time last year, with the average time to sell at its slowest since 2015, excluding the initial pandemic lockdown months of April & May 2020.
- Analysis shows that sellers who price right initially are far more likely to sell quickly.
With the 2024 Budget approaching, more support to help first-time buyers onto the ladder would be welcome, with activity levels lagging behind in this sector as mortgage rates stay elevated and saving for a deposit remains challenging.

Average new seller asking prices rise by 0.9% (+£3,091) this month to £362,839, in line with the seasonal rise we’d expect to see in February. Perhaps more noteworthy is that average prices are now up by 0.1% compared to this time last year, following annual falls in every month since August 2023, one of several signs of growing market momentum.

The number of sales agreed in the first six weeks of the year is 16% higher than in the same period last year, indicating that early-bird buyers feel that 2024 offers the right market conditions to move, and they are already seizing the opportunity. However, the market remains price-sensitive, with many buyers very budget-conscious. Sellers who are over-optimistic and think that the more positive market sentiment will let them try asking for too high a price, risk being left on the shelf and missing out on the important Spring moving season.

Sales agreed numbers are being supported by more buyer and seller activity. During the first six weeks of 2024, the number of properties coming on to the market was 7% higher than the same period last year, while the number of buyers enquiring to estate agents was 7% higher. The number of sales being agreed is now 3% higher than at this time in 2019, as these numbers continue their transition towards more normal levels.

Despite these positive activity numbers, the market appears to be operating at two speeds. We report that properties that are accurately and competitively priced are being snapped up by budget-conscious buyers who are keen to make 2024 their year to move, having paused during the uncertainty of 2023. However, properties that are over-priced will immediately stand out against more competitively priced neighbours and are being left on the shelf by price-sensitive buyers. Evidence of this is that despite higher activity levels than last year, it’s now taking an average seller more than two weeks (16 days) longer to successfully find a buyer than at the same time last year. The time to find a buyer is at its slowest since 2015, excluding the initial lockdown months of April and May 2020. Buyers now have more time to consider which property is right for them, making it even more important for sellers to price temptingly and stand out from the crowd. Rightmove analysis also shows that sellers who price right initially are far more likely to find a buyer and sell more quickly.

As the 2024 Budget approaches, data indicates that the first-time-buyer sector is most in need of government support, with buyer activity levels and sales in this sector the least improved compared to last year. While the mortgage market has recovered its stability, there are growing signs that the room for lenders to reduce rates further is narrowing, and that rates will settle at elevated levels for the near future. On top of this, inflation and cost-of-living pressures remain, making saving up a large enough deposit challenging for would-be first-time buyers.

Affordability trends

The first-time buyer monthly mortgage payment is based on Bank of England data of the averages for 90% LTV two year fixed mortgages from lenders, and the average asking price of a typical first-time buyer home (two bedrooms or fewer) using the Rightmove House Price Index. The equivalent monthly rent is calculated using the same property types (two bedrooms or fewer). The affordability to buy a first home is based on the Average Weekly Earnings (AWE) dataset from ONS multiplied by 4.5 to get the typical maximum that a person can borrow from a lender. The average asking price of a typical first-time buyer home is taken from the Rightmove House Price Index

Price & activity trends

Regional trends

London boroughs

Navigating the Maze: Overlooked Expenses of Selling Your House in the UK with I Am The Agent

info@iamtheagent.com — Fri, 9 Feb 2024 10:31:00 +0100

Introduction:

Selling a house can be an exciting yet complex journey, and as a homeowner, it's essential to be prepared for the various expenses that may arise throughout the process. While many focus on the potential profit, it's crucial to consider the often-overlooked expenses associated with selling a house in the UK. In this blog post, we'll shed light on these hidden costs and discuss how partnering with I Am The Agent can help you navigate them more efficiently while saving on estate agency fees and marketing costs.

1. **Estate Agent Fees:**

One of the primary costs associated with selling a house is the fee charged by estate agents. While this expense is well-known, the actual amount can vary. I Am The Agent provides a transparent and cost-effective solution, allowing you to save on traditional high-street estate agent fees while still benefiting from professional support.

2. **Conveyancing Costs:**

Conveyancing is the legal process of transferring property ownership. Solicitors or conveyancers handle this, and their fees are often overlooked. I Am The Agent can connect you with trusted conveyancing services, helping you understand and manage these essential legal costs.

3. **Energy Performance Certificate (EPC):**

In the UK, an Energy Performance Certificate is a legal requirement for selling a property. This certificate assesses the energy efficiency of your home. While obtaining an EPC is necessary, the associated costs can catch sellers off guard. I Am The Agent offers guidance on obtaining an EPC, ensuring compliance without unnecessary expenses.

4. **Home Repairs and Improvements:**

To attract potential buyers, your property may need repairs or improvements. Whether it's fixing a leaky roof, repainting, or addressing structural issues, these costs can add up. I Am The Agent provides valuable insights into cost-effective improvements that can enhance your property's appeal without breaking the bank.

5. **Removal Costs:**

The process of moving itself comes with expenses, from hiring a removal company to packing supplies. I Am The Agent can assist in planning and budgeting for these costs, helping you streamline the moving process.

6. **Capital Gains Tax:**

Depending on your circumstances, you may be liable for Capital Gains Tax on the profit made from selling your property. Understanding the tax implications is crucial, and seeking professional advice is recommended to navigate this aspect properly.

7. **Mortgage Early Repayment Charges:**

If you have an existing mortgage and choose to repay it early upon selling your property, you may incur early repayment charges. Understand potential charges and consider seeking professional advice to make informed financial decisions.

Conclusion:

Selling a house involves more than just listing it on the market. By partnering with I Am The Agent, you gain access to a wealth of resources and support that can help you navigate the often-overlooked expenses associated with selling a property in the UK. From transparent estate agent fees to guidance on legal processes and cost-effective improvements, I Am The Agent is your trusted partner in achieving a successful and financially sound property sale. Embrace the journey with confidence, knowing that you have a reliable ally by your side.