May Market Report. Local property news for you...
Our offices across Bristol have enjoyed a very positive Spring, even if the weather suggested otherwise. We can confirm Bristol sellers have been very proactive, resulting in a great choice of properties of all types coming to market. Buyer's enquiries and indeed viewings and offers have proven to be equally upbeat.
Economy
UK interest rates have been left unchanged at 5.25% in May by the Bank of England. Monthly GDP is estimated to have grown by 0.4% in March 2024, following growth of 0.2% in February 2024 (ONS). CPI inflation rose by 3.2% in the 12 months to March 2024, down from 3.4 % in February (ONS).
Prices
The average price of property coming to the market for sale rises by 0.8% this month (+£2,807) to a new record of £375,131 as the momentum of the Spring selling season exerts some modest upwards price pressure. May is typically a strong month for price growth, with new price records having been set in May in 12 of the previous 22 years. Price growth is still led by the largest-homes, top-of-the-ladder sector, with prices in this sector up by an average of 1.3% compared with last year. However, since the last price record set a year ago in May 2023, average prices are only 0.6% higher overall, a reminder that the market remains very price-sensitive.
“Some predicted that property prices would suffer sharp falls and take a while to recover following the Bank of England increasing the Base Rate up to 5.25%, where it has remained since August 2023. However, the momentum of the Spring selling season has exerted enough upwards price pressure to reach a new record asking price. However, it’s important to remember that prices overall are still only 0.6% ahead of this time last year. The market remains price-sensitive, and with prices reaching new records in the majority of regions and mortgage rates remaining elevated, affordability for many home-buyers is still stretched.” Tim Bannister Rightmove’s Director of Property Science
Bristol
Over the last 12 months the average sales price in Bristol was £359,547. The total value of sales was £1,416,027,309.
33% of sales in the past 12 months were flats, achieving an average sales price of £275,228. Houses achieved an average price of £409,496.
The highest value recorded by the Land Registry over the past 12 months was £2,950,000 for a flat and £3,160,000 for a house.
Demand
There were 61,325 mortgage approvals in March, the highest level since September 2022 and 1.4% above the previous month (Bank of England).
New buyer enquiries in the latest RICS Residential Market Survey, softened to -1% in April, down from a reading of +6% previously.
"Pent-up demand is a key driver behind increased buyer and seller activity, despite mortgage rates remaining elevated for longer than anticipated. In the first four months of the year, the number of sales being agreed between buyers and sellers is 17% higher than in the same period in 2023, outstripping the 12% increase in the number of new sellers coming to market. Like pricing activity, these trends are being driven most by the top-of-the-ladder sector, made up of four bedroom detached and five bedroom plus properties. A lack of available homes for sale in this sector during the pandemic years, together with the rapid rise, and subsequent volatility of mortgage rates in the post-mini-Budget period, meant that activity in this sector was particularly susceptible to some potential movers taking a step back. Now, with mortgage rates more stable albeit still high, and greater buyer choice, many who had postponed their moving plans in this sector appear to be returning.
We anticipate the number of completed sales transactions this year to reach around 1.1 million. Rightmove’s key lead indicators, powered by the UK’s largest selection of properties for sale and real-time data, suggest positive progress towards reaching this number of transactions. However, the lengthy time to complete a sale after finding a buyer remains a challenge for both agents and movers. The average time between agreeing a sale and legal completion is a painful five months, or 154 days. In total, it is taking over 7 months on average from a seller coming to market to completing their move, meaning that as early as it may seem, would-be sellers hoping to celebrate Christmas in a new home need to be coming to the market about now." Tim Bannister Rightmove’s Director of Property Science
Transactions
The HMRC report that 84,200 sales took place in March, the highest level since September 2023, but down -6.5% on last year's levels.
The agreed sales metric in the latest RICS' survey improved slightly to +5% in April compared to -5% last month and marks the most positive reading since early 2021.
Investment/lettings
Average UK private rents increased by 9.2% in the 12 months to March, up from 9.0% in February (ONS, Price Index of Private Rents).
The average UK rent rose by 1.6% in April to £1,294, 7.9% higher than the same time last year (HomeLet). Letting agents are receiving 13 tenant enquiries for every rental home, nearly triple the average of five back in March 2019 (Rightmove).
We hope that was useful and informative. As always, our teams are here to help, get in touch with any questions about your local property market, and to discuss your home move considerations.
If securing a new mortgage or arranging a re-mortgage is important for you right now, click here to book an online consultation, our mortgage brokers are independent, and their services are free to you.
Finally, if you are (understandably) confused by some of the mixed market reporting, not least by some of the more sensational news reporting each month, click here for some independent insight into how House Price Indexes are compiled.
Sources: Rightmove, Zoopla, On the Market, Dataloft, Land Registry, National House Price Index, DLUHC
Contact your nearest office if you have any questions about your local property market.
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