November Property Market Analysis
Propertymark’s latest report gathered responses from approximately 100 sales and 100 lettings agents 1st and 14th October 2023 for a great snapshot of the market. It found there were an average of 60 prospective buyers registered per branch, illustrating that there’s an appetite to move.
Buyer sentiment is favourable when looking at Rightmove’s October House Price Index. It found the number of purchasers enquiring about properties for sale is 8% higher now than in the same month in 2019. The portal discounts the pandemic years as they presented artificially inflated, incomparable conditions.
More homes needed as supply dips.
In terms of supply, Propertymark found there was an average of 39 homes for sale with each branch in September. This is down from 45 properties per branch in August. More positively, the number of new instructions was above the 12-month rolling average.
Valuations suggest more choice is coming.
A better supply of properties is hopefully on its way. Current trends show each Propertymark branch took on an average of 11 new homes in September. This figure could improve soon, as branches conducted an average of 20 valuations in the same month.
There’s a pricing update from Rightmove concerning new-to-market homes. Its October House Price Index showed average asking prices increased 0.5% during October. As a result, the average asking price is now £368,231.
So who is buying? Zoopla looked at the composition of buyers in 2023. It says the largest buying group has been first-time buyers. They were followed by cash buyers, who make up 1 in 3 sales. For comparison, cash buyers have only accounted for 1 in 5 sales over the last five years.
Now on to what people are actually paying for properties. Another house price index – this time from the Nationwide – noted a rise in sold values. The building society found UK house prices increased 0.9% during October, with a new average of £259,423. Instead of house prices, mortgage rates are a buyer’s current focus. With the Bank of England choosing to hold the rate at 5.25% in November, borrowers are looking to lenders for additional news. This came in the shape of decreasing rates attached to 2- and 5-year fixed-rate mortgages during October.
Hope for those with 5% deposits.
There’s also speculation that the Chancellor will extend the Mortgage Guarantee Scheme beyond its current end date of December 2023. Details are expected in November’s Autumn Statement. The scheme was created to assist borrowers who have a 5% deposit.
There are conflicting reports when it comes to tenant demand. In October, Rightmove announced that each rental property it lists receives an average of 25 enquiries. This is up from just 8 per property in 2019. Propertymark, however, found the number of new prospective tenants registering with branches dropped from 121 in August to 96 in September.
Can a lack of supply encourage new landlords?
Renters shouldn’t be swayed by an apparent fall in applicant numbers. Propertymark’s figures highlighted how there’s still a huge disparity between the volume of actively-searching tenants and available properties. Supply has flatlined at around 11 rental homes per branch, with more than 10 new applicants registering each month for every property.
In terms of average rents, the news has a familiar ring. HomeLet’s October Rental Index revealed renting costs have risen again. A 0.5% increase leaves the average monthly rent at £1,283. In the last four weeks, rents rose in every region, apart from Scotland.
If you would like to know more about your local property market, please get in touch.
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