Surrey Market Update: Competitive Pricing is Key to Sale Success

Never has pricing by an experienced agent been more crucial.  

This year, we have seen an emerging divide between the north and south of the UK in terms of house price growth.  Affordability continues to be the key driver of this disparity; in other parts of the country, higher stamp duty costs (since April) combined with ongoing affordability pressures, are proving to be less of a barrier.  

Encouragingly, across all regions, we have seen sustained growth this year, which demonstrates an overall market resilience and increased confidence.  Helped in part by continued mortgage rate stability and increased competition among lenders.  

In Zoopla’s September House Price Index, they commented:

“Growth is weakest in Southern England, where prices are rising by less than 0.5% across London, the South East, the South West and the East of England. Elsewhere in the UK, annual growth ranges from 1.4% up to 7.9% in Northern Ireland. In the North West, prices are 3.1% higher year-on-year.”

This doesn’t mean that there is no activity in the South East, far from it.  In the south of England, the number of sales agreed is still up by 3% year-on-year, while it’s up by 5% across the rest of Great Britain.  This indicates consistent growth and highlights that the south is a very price-sensitive market.  

In their latest House Price Index, Rightmove confirms what we have been experiencing over the last few months.  “Competitive pricing is even more vital in the south. The number of homes for sale in the south is up by 9% on 2024, compared with 2% elsewhere, and it takes an average of five days longer to find a buyer.”  There has been no shortage of new stock coming to market, but the price point at which a buyer will engage is very dependent on market demand and competition.  

The rumours around property tax changes have undoubtedly created some nervousness.  This could well be a topic which will feature in the November Budget on the 26th.  Reassuringly, Rightmove’s real-time data shows no immediate reaction from movers to these rumours.  We anticipate the September/October data will show an unseasonably slower autumn period, particularly in the south of the UK, where more people will be affected by the £500k threshold, which has been batted around.  This doesn’t mean houses don’t sell, it usually impacts the more speculative seller from committing.  

We see activity every day; viewings, new offers and sales being agreed.  We know first hand how local insight beats national noise when formulating a marketing strategy.  Our advice to any would-be sellers or buyers is not to let the sensational headlines influence your decision.  When it comes to solid advice, you really need to speak to the experts.  

P.S. We hate to mention it – if you want to be sold by Christmas, you need to be making some quick decisions and be motivated to listen to market feedback.  

Source:
Zoopla September House Price Index
Rightmove September House Price Index