Despite the wider economic challenges impacting the UK property market, a continuous disparity between supply and demand has pushed house prices up to a record high after a 0.9% rise in October.*

According to Rightmove’s House Price Index, the rise represents and increase in value upwards of £3,398, with the price of an average home now standing at £371,158.*

This new asking price record is somewhat of a surprise given the market uncertainty that followed former Chancellor Kwasi Kwarteng’s mini budget in late September. There was also little sign of downwards price pressure towards houses already on the market, with the number of reductions up by 2% following the announcement to 23% of all properties reduced, which is still a far cry from the pre-pandemic five-year average of 32%. *

Tim Bannister Rightmove’s Director of Property Science, comments: 

“What’s going to happen to house prices is understandably on the minds of many home-movers right now, especially following the market uncertainty after the government’s mini-budget. There has been no immediate effect on prices, but the trend of a slight softening in the pace of growth continues."

"New sellers coming to market in the month have been pricing strongly, and the number of homes that were already on the market seeing a reduction in price is still well below the long-term average. It will take a bit of time for the market to settle into a new, more ‘normal’ level of activity following over two years of market frenzy, especially with new developments happening almost daily at the moment.”

It's understandable that some prospective buyers will be pausing their plans momentarily in an effort to ‘wait-out’ the next few weeks and months until market uncertainty wears off and the full picture becomes clear. Despite this, demand still holds steady at 20%* higher compared to a more normal market of 2019. This trend also follows through to the first-time-buyer sector, with demand still high at 24%* compared to 2019, further demonstrating that buyer confidence has continuously improved since the pandemic.

Although some buyers are awaiting a clearer outlook for the time being, those who have already agreed to their purchase appear to be proceeding with confidence. Only 3.1% of sales agreed fell through in the two weeks following the mini-budget announcement, which parallels the 3.0%* reported over the same two weeks in 2019. UK agents are recording that those who have managed to secure a low-rate mortgage offer are eager to complete their purchase as fast as possible, before the offer closes.

Tim concludes: “The vast majority of buyers who had already agreed to their purchase are still going ahead. Agents report that many of those who managed to secure a mortgage offer at a lower rate before lenders quickly increased them are now rushing through their agreed deal to avoid their offer expiring and facing a higher rate when they come to reapply. It’s understandable that some new movers who have the option to wait may want a clearer view than they’re getting right now before they proceed with a major purchase such as a home.”

"With uncertainty over where mortgage interest rates will go, those who can still afford to proceed may decide that waiting too long could come at an even higher cost than taking action to move now, especially if the level of demand continues to outstrip supply and supports prices.”

Considering the increase in average home values, do you know the value of yours? Book a valuation with us today to find out.

Rightmove *

According to a new analysis of property market performance over the past three months, estate agents across the UK have facilitated just over 43,000 transactions per month – meaning they have sold an average of 17% of all homes listed for sale on a monthly basis.*

A study has been conducted by Get Agent to reveal where in the UK estate agents with the highest turnovers reside. Registered property transactions, the level of sales turnover activity, and the transactions of all homes listed for sale were all analysed.

Regional performance

The latest figures from the study revealed that both the North West and Yorkshire and The Humber rank top. Across the North West, estate agents are currently selling over 5,500 homes per month on average, whilst in Yorkshire and The Humber, the monthly average sits at 4,200.

However, when the regional rate of sales is compared to the total stock listed, agents across both regions are selling the equivalent of an astounding 20% of all homes for sale each month.

In the West Midlands and North East, the average is a notable 19%, while the East Midlands follows close behind with 18%.

The South West, South East and East of England are tied, with monthly sales volumes landed by agents across these areas equating to 17% of the overall stock listed on the market.

In Wales, agents were found to be selling around 15% of total market stock each month, while London ranks last at a respectable 12%.*

Market perseverance

The data is further evidence of the market remaining resilient during times of uncertainty. Homeowners and first-time buyers can take comfort in the government’s return to a more traditional economic approach, which is likely to continue to stabilise the mortgage markets. The bank of England indicated in mid-November that a continued rapid hike of the base rate in 2023 would be unlikely, so this suggests that concerns around mortgage rates creating a demand cliff edge will not now come to pass, protecting homeowners from their assets declining in value. Buyers and sellers alike appear to be proceeding with confidence, and their trust in the market continues to pay off.

Mal McCallion, COO of Get Agent, commented: “The property market has been motoring since the pandemic and this is abundantly clear when analysing just how hard the nation’s estate agents have been working. And now, even during a more difficult period for the market, in many areas of the UK correctly-priced homes are still selling as quickly as agents can list them."

"Of course, it’s important to note that a good quality agent is based on far more than their sales turnover - and the challenges they face differ from one property pocket to the next. In today’s market, the real value added by agents isn’t just through speed of sale or asking price achieved - it’s by using their experience and knowledge to synthesise these skills and get the sale over the line."

"These traits are particularly invaluable in slower areas of the market and it’s fair to say that now, more than ever, quality counts - you’re going to need all the attributes of a great agent to get your best sale through for the rest of this year and the next.”

Thinking of selling your home? Contact our team of experts today to get started.

*Get Agent

January is a time of clarity, after shaking off the tinsel and pine needles, it’s the time to return to everyday life with intentions of improving it – which is why plans for moving often come into fruition at this time of year.

If you have some reservations about putting your house on the market so soon after Christmas, here are some reasons not to worry and why in fact, January could be the perfect time to sell…

New Year, new home

Buyers on the market at this time of year have a completely different mindset than usual. January can feel like a page turned for many people, with plans for a new life right in the margins. You’re less likely to run into time wasters and tyre kickers in the New Year. People looking for a home at this time are serious about their plans, and if your home happens to match their criteria; you’re in luck.

Boast your home’s best features

Smart buyers will look for a home in the winter. Not only to avoid the summer frenzy, but also because cold weather is far more revealing, and homes can potentially look their worst in the winter. However, this is a great window of opportunity for sellers. Your agent will be able to showcase the comforts of your home with staging so that your bright, warm and welcoming house contrasts against the dark and cold. A cosy refuge from the cold that holds up nicely in the Winter is bound to look even better when the weather cheers up, and this prospect is certain to draw in buyers. 

On the move

In the wake of the holiday season, January is known for being the busiest time of year when it comes to employee redistribution and staff changes. With many people working from home, a change of job may be the push needed for a change of working environment; instead of moving offices, people will be moving to new homes with better office space. 

Now is also the perfect time for first-time-buyers to take their first step onto the property ladder. After spending Christmas indoors with family or in a small apartment, a change in environment could be just the thing they need. 

Less competition

The winter months are a great time to put your house up for sale, particularly in January when the seasonal lull is still wearing off and fewer properties are on the market. You won’t need to fight for buyers’ attention, and the imbalance of supply and demand could be great news for sellers, as buyers know their options are fewer. It’s also easier to make your home stand out from a (smaller) crowd of homes on the market, and if yours has something special to offer, it won’t stay on the market for very long. 

The green element

EPC ratings are becoming increasingly important, and the cold weather will allow you to show off your home’s energy efficiency. Buyers are becoming more conscious about energy bills and individual environmental impact at the moment, and a cosy property with an impressive EPC rating has never been more attractive to buyers than right now. 

Ready to get your home on the market? Speak to our team of experts today to get started.