I Am The Agent Blog - Property News

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

Unlocking Success: The Significance of Marketing Your Property through I Am The Agent on Rightmove

info@iamtheagent.com — Fri, 9 Feb 2024 10:39:00 +0100

Introduction:

In today's digital age, the estate agent market has undergone a significant transformation, with online platforms playing a pivotal role in property transactions. As a forward-thinking homeowner or landlord, leveraging the right property portals is crucial to ensure the successful marketing and sale or rental of your property. In this blog post, we'll explore the importance of marketing your property through I Am The Agent on Rightmove.

1. **Widest Exposure for Your Property:**

Rightmove is the UK's largest property portal, attracting millions of potential buyers and tenants each month. By listing your property on Rightmove through I Am The Agent, you instantly gain access to a vast and diverse audience. This broad exposure increases the likelihood of finding the right buyer or tenant for your property.

2. **Targeted Reach and Qualified Leads:**

Rightmove's advanced search features allow users to filter their property search based on specific criteria such as location, price range, and property type. This means that your property is more likely to be seen by individuals actively looking for a property like yours. By marketing through I Am The Agent on Rightmove, you can attract qualified leads who are genuinely interested in what your property has to offer.

3. **Competitive Advantage:**

In a competitive estate agent market, standing out is crucial. Rightmove is a trusted platform that many potential buyers and tenants turn to first when searching for properties. By featuring your property on Rightmove with I Am The Agent, you gain a competitive advantage, increasing the visibility of your listing and attracting more attention compared to properties listed on less popular platforms.

4. **Comprehensive Property Details:**

Rightmove allows for detailed property listings, including high-quality photos, floor plans, and comprehensive descriptions. Through I Am The Agent, you can ensure that your property is presented in the best possible way, providing potential buyers or tenants with all the information they need to make informed decisions. This transparency builds trust and accelerates the decision-making process.

5. **Data-Driven Insights:**

I Am The Agent provides valuable insights and analytics to track the performance of your property listing on Rightmove. By analyzing this data, you can make informed adjustments to your marketing strategy, enhancing your chances of success. Understanding user engagement, viewing statistics, and click-through rates empowers you to refine your approach and maximize the impact of your property listing.

Conclusion:

In the dynamic landscape of the estate agent market, effective marketing is the key to success. By choosing I Am The Agent to market your property on Rightmove, you tap into a powerful combination of extensive reach, targeted exposure, and data-driven insights. This strategic approach not only increases the visibility of your property but also positions it in front of a qualified audience, ultimately increasing the likelihood of a successful sale or rental transaction. Embrace the digital era of estate agent marketing with I Am The Agent and Rightmove, unlocking new possibilities for your journey.

Add your property and get seen on Rightmove and Zoopla within minutes. Start here.

If you are a property developer do drop us a line to see how we can help you market your property on Zoopla and Rightmove.