9% More Sales Agreed

Industry pundits and those in the know have all been predicting a modestly better year, in comparison to last year.  Reassuringly, demand from buyers and sellers, certainly in our part of the world, started well and doesn’t appear to have dissipated.  

With the changes to stamp duty fast approaching (1st April), there had been an anticipated “rush” to beat the deadline.  Yes, there will be several agents and solicitors furiously trying to get a few deals over the line, however, the reality is that if anyone was hoping to beat this deadline, they needed to have secured a property months ago.  

Affordability is still an ongoing issue, and this is proving to be the true acid test on a house which might be optimistically priced by either an overzealous agent or an unrealistic seller.  With a lack of new housing stock in general, the affordability pressures for buyers are keeping house price growth at a steady level.     

Wider economic issues haven’t appeared to hinder the appetite of those who have been waiting for some time to get on with their moving plans.  

Zoopla recently reported that “the surge in rental costs means it is now cheaper to buy a home than to rent one, reversing a recent trend.  The property website said the average UK rent is £1,248 per month, while average mortgage repayments are £1,038 for first-time buyers – this is based on a 20% deposit, which equates to £50,740, for a typical first-time buyer priced property of £253,700.  The issue here, for first-time buyers, is this deposit.  The ‘Bank of Mum & Dad’ has never been so busy! The same report stated that “63% admitted that they received help from family members when buying their first home”.  

There is continued positivity in the mortgage world.  Our trusted mortgage partner, The Surrey Mortgage Company, recently researched mortgage interest rates for both 2 and 5 years fixed, with a 5% deposit up to 40% deposit.  They were delighted to report that “it’s positive to see the rates have slowly reduced over the last few weeks”.  They continued to say they are hopeful they will remain competitive into the second quarter of the year. 

For those interested in more data-driven information, the recent Rightmove House Price Index reported: 

• The average price of a home coming to market rose by £3,876 this month to £371,870.
• While new Spring buyers will not beat this month’s stamp duty deadline, they will benefit from the highest property choice at this time of year since 2015.
• The number of sales being agreed is 9% higher than at this time last year, a positive sign for the market post-stamp-duty increase, and the number of new sellers is now 8% ahead of this time last year.

Their data for Surrey shows the monthly change in the average asking price has increased by 1.7% and annually by 0.4%.  The annual stock change has increased by 6.5%.  

This year is likely to be a fine balancing act between sellers’ expectations and buyers’ affordability constraints.  The increase in available homes is reassuring, but any would-be sellers should be mindful that with greater choice, buyers are in a stronger negotiating position; pricing correctly from the outset is critical.  

If you need any help or advice we would be delighted to help.  


Source:
https://propertyindustryeye.com/first-time-mortgages-now-20-cheaper-than-renting-says-zoopla/
https://www.rightmove.co.uk/news/house-price-index/