Are you looking to move in 2023?

We are often asked...when is the best time to buy or sell a property? And realisitcally it should be within the constraints of affordability and when it is most suitable for you and your families.

The current climate has an impact on the decision making process, but if it is the right time for you to consider a move, then get the local market intelligence from a local Estate Agent. Activity in some areas of the country can be different to the national property market position, so please do come and talk to us, especially if you are considering moving in 2023 - now is the time to prepare!

One in three properties receive an offer one hour after viewing

The housing market once again exceeds expectations after a poor reception from the chancellor’s mini-budget and regular talk of a possible slowdown, as current research suggests that in 2022, almost a third (31%) of properties are now receiving offers within an hour, compared to a mere 7% in 2018.

Over a five-year period, almost one in five (17%) properties received an offer within one hour of a viewing. An even more notable 7% of buyers made an offer on a property without attending an in-person viewing, according to data from MPowered Mortgages.

The data also outlined that properties receiving an offer in a day is up over the same period, rising from 26% in 2018, to almost half (48%) by 2022. Around 12% of homes have received an offer without a viewing this year, which could be a result of social norms shifting in light of the COVID-19 pandemic, where remote/virtual viewings became the new normal. The data showed a substantial jump in buying without viewing, up from 7% in 2018.

Strong demand and competitive buyers

To find out more about current buying behaviour, the fintech mortgage lender has launched a House Pace Index, driven by market conditions, government intervention within the property market, and consumer behaviour of wanting to ‘buy now’.

The research revealed that 38% of properties that have been placed on the market in the last five years received an offer within the same day of a viewing, with only 14% securing an offer after a second viewing.

The data also suggests that the younger generation are most prepared out of all age groups to take a more eager approach, with 18–34-year-olds acknowledged as most likely to adopt this mindset towards house buying. Some admitted to making an offer before seeing a property, in comparison to just 5% of 35–54-year-olds.

The average age of a first-time-buyer in the UK currently sits at 34, which is why this age group being quick to act could be pinned down to a lack of experience, coupled with fewer mortgage deals available on the market, the study suggested.

Tunnel vision

The data from Mpowered Mortgages also showed that, before making a first offer, buyers are seeing an average of three properties, while 40% of buyers only view two properties before deciding to make an offer on the home they set their sights on.

Pressure on buyers resulting in quick offers

The market is thriving with historical rates of activity as buyers race to secure their ideal property in the midst of a chronic imbalance between supply and demand. The current market climate and data findings show that offers are being made extremely quickly, despite common belief that a ‘slow-down’ is on the horizon.

Stuart Cheetham, CEO at MPowered Mortgages, commented:

“The race to find a home can be a daunting prospect even more so now in an environment where mortgage rates are rising as part of the cost of living. Of the many hurdles a homebuyer faces, one element that can be largely controlled is the certainty of their mortgage and this will be even more important as rates continue to rise.”

Considering selling? Take advantage of the buoyant market and get in touch with us today to book your valuation.

Your local Estate Agent, at the heart of the community...

Humans are social animals, forming societies and seeking contact with others for well-being purposes. It is not therefore surprising that buyers and renters look for a sense of community in their new home search.

Three quarters of home movers rated the local community as 'Important' when searching for a new home to buy. Pleasant neighbours were viewed as important by 87%.

A sense of community in a local area would also encourage 72% of renters to rent for longer and, 69% would rent for longer if there was a sense of community within their building.

Neighbourhoods or streets where homes rarely come up for sale are a good indicator of a strong community, as is the number of neighbours a resident knows by their first name. Source: Dataloft, Property Academy Surveys 2022 (including over 10,400 home movers, over 6,800 renters)

Click here to read Your local Estate Agent, at the heart of the community....

Average UK rents rise to £1,159 PCM

Houses aren’t the only things seeing a rise in prices, as every area of the UK recorded a growth in rent prices during September. Greater London alone saw a 2.5% increase, which helped to drive the average rent in the UK to £1,159 per calendar month. This is a notable 1.4% rise from the previous month.

Data from lettings insurance company, HomeLet, reveals that average rents across the UK (Excluding London) now stand at £971 PCM, a jump from 1% between August and September. Their Rental Index also found that the North-East saw the second largest monthly variance, with rents rising by 2.4% between August to September, boosting the average rent up to £609 PCM.

These figures are from data on achieved rents for just-agreed tenancies arranged in the most recent period – this provides a detailed insight into the lettings market, its current trends and consumer behaviour across the UK.

Why are rents rising?

UK rental growth has long been driven by mounting rental demand, and increasingly limited supply. This creates a cycle, whereby rising rents mean tenants are staying put, rather than moving to a property where they could end up paying more rent - contributing to the lack of supply which drove rents up in the first place.

Zoopla found that tenants are staying in rental properties for an extra five months in 2022, compared to five years prior.

Rightmove also acknowledged the same phenomenon, and noted that the number of new rental listings peaked for the year in June 2022.

Tim Bannister, Rightmove’s director of property data, said: “A shortage of rental homes and strong demand for the properties available has led to a greater number of tenants choosing to renew their leases and stay put, rather than re-enter a competitive rental market.”

“People who had been waiting to see what happened last year are now being faced with record rents, and so are seeking out properties where they can have more certainty over their outgoings, with all bills included becoming increasingly sought after.”

Will rent prices go down in 2023?

Most experts forecast that rents will continue to rise into 2023, albeit at a slower pace, as the cost-of-living crisis continues to take its toll on household incomes.

But, the localised element of the market means areas where demand is at its highest, could see rents continue to grow.

Rightmove’s Tim Bannister stated that it will take time for the difference between demand and supply to level out to see rents fall.

“The story of the rental market continues to be one of high tenant demand but not enough available homes to meet that demand,” he noted.

“The wide gap that has been created between supply and demand over the last two years will take time to narrow. Until then, this imbalance will continue to support asking rent growth. This has led to our revised forecast of an 8% rise in asking rents by the end of the year up from 5%.”

As demand rises, is your portfolio expanding? Let us help you. Our fully managed service takes the stress out of letting - find out more today by visiting our website.

*HomeLet

** Rightmove

What has happened in the property market during the last 50 years?

It’s no secret that today’s property market is thriving at peak buoyancy, with record house prices and demand going through the roof, which is why it’s easy to overlook the history of the market which brought us to this point. However, while the market reaches a fruitful era for both buyers and sellers, there are notable periods of buoyancy over the last 50 years which could put things into further perspective.

While the market continues to change and grow in today’s climate, in order to look forward and predict future trends, it’s important to look back. New research from GetAgent tracked house price data going back as far as the 1970s, adjusting for inflation, to see which decade has been the most fruitful for the nation’s homeowners. *

The research delves back into January 2010, when the average UK house price was £167,469, and climbed to £231,792 by the end of the decade at a 38.4% increase. However, after adjusting for inflation, the rate of house price growth recorded between January 2010 and December 2019 sits at around 14.8%, which was the second lowest rate of house price growth in any of the past five decades.

In fact, it’s only been the 90s, when the market has posted the worst performance, with house prices increasing by just 9.7% after adjusting for inflation.

The noughties was by no means, a bad decade for homebuyers, but it still ranks just third where inflation-adjusted house price growth is concerned, with the average UK house price rising by a notable 66.8%.

The research placed the 70’s in second place of the ranking, with house prices climbing by 69.8% after adjusting for inflation, leaving the 80’s to be crowned the best decade to have bought a home.

After adjusting for inflation, the average UK house price was just £66,783 back in January 1980. By the end of the decade, the cost of buying bricks and mortar had climbed to £127,207, a 90.5% increase.

Colby Short, Co-founder and CEO of GetAgent.co.uk, commented: “There’s plenty of reasons why we may argue one decade was better than the rest, but when it comes to house price appreciation, the eighties takes it by some margin.”

"Even after adjusting for inflation, today’s generation of homebuyers may well find it unfathomable that the average home cost just shy of £67,000 back in 1980. So, while today’s buyers have had to contend with some of the lowest levels of housing affordability in history, they may well spare a thought for those who saw the cost of buying increase at such an alarming rate during their lifetime.”

"With the market currently running red hot and no end in sight despite the wider economic landscape, it will certainly be interesting to see where we finish by the end of this decade, and if the eighties will finally be relieved of the crown when it comes to the highest rate of house price appreciation in a single decade.”

Do you know how much you could achieve for your home? Book a valuation with our local experts today.