September Market Report. Local property news for you...
Average new seller asking prices rose by 0.8% (+£2,974) nationally this month to £370,759. September usually sees a monthly rise in prices, but this year’s increase is double the long-term average, with prices supported by increased activity levels.
This is beyond the usual seasonal norm, driven by a strong recovery in activity this summer when compared with the much more subdued market at this time in 2023. It appears that the traditionally busier autumn market has arrived earlier than usual, with many buyers and sellers spotting a window of opportunity to act.
However, the market remains cautious, and there are still uncertainties ahead. It’s currently taking an average of 60 days for a seller to find a buyer, three days longer than in the more subdued market at this time last year as value-conscious buyers take their time to find the right home at the right price. (Rightmove)
All 11 Ocean offices report further increases in activity in both property viewings and offers made during the traditionally quite 'summer holidays' period. Year-on-year sales records are surpassed and look to remain positive for the remainder of the year in Bristol.
Economy
The Bank of England has delivered its first interest rate cut in more than four years, taking the rate to 5%.
Monthly GDP is estimated to have shown no growth in July 2024, after also showing no growth in June 2024. CPI inflation rose by 2.2% in the 12 months to July 2024, up from 2.0% in June 2024 (ONS).
Prices
The average price for a property in June was £287,924, up 2.7% year-on-year (ONS).
Average new seller asking prices rose by 0.8% this month to £370,759, double the long-term average September price increase (Rightmove).
Year-on-year prices are up +4.3%, the strongest rate since November 2022. Higher annual growth largely reflects the base impact of weaker prices a year ago. Typical property now costs £292,505 (compared to £291,585 in July), highest since August 2022 (Halifax)
1.4% house price change is now predicted through 2024, up from -2.2% this time last year (HM Treasury Average of Independent Forecasts).
Bristol
Demand
“The autumn action has started early with a strong rebound in activity from both buyers and sellers compared to the subdued market at this time last year, continuing the momentum from the better-than-expected summer market. The certainty of a new government followed by the first Bank Rate cut in four years invigorated the market, opening a window of opportunity for movers to act. Some of this will be pent-up demand from those who had to hit the pause button until now. However, windows of opportunity tend to need a momentum of good news to stay open, and there are still uncertainties ahead which could cause some of the current market activity to ease.”
“Early autumn movers who are acting quickly and taking advantage of the improved market conditions are getting the pick of quality homes for sale. Home-owners who are thinking of coming to market soon shouldn’t let the increased activity make them over-optimistic and must price competitively to sell. With affordability still very stretched for many, choosy buyers are taking their time to browse the increased number of homes for sale and find the perfect home at the right price. There are question marks over how the market will be affected by announcements in the Autumn Statement, but until then we expect that market momentum will continue as the autumn action rolls on.”Tim Bannister Rightmove’s Director of Property Science
There were 61,985 mortgage approvals in July which is 26% higher than a year ago (Bank of England). The reading of new buyer enquiries in the latest RICS Residential Market Survey was +15%, the most positive since October 2021.
Transactions
There were 90,630 transactions in July, a 5% rise compared to a year earlier (HMRC).
The agreed sales metric in the latest RICS' survey posted a net balance reading of +6%, modestly higher than the figure of -1% seen last time.
The number of sales being agreed is 23% higher than a year ago (Zoopla).
Investment/lettings
The number of homes available for rent remains a quarter (24%) below the pre-pandemic average (Hometrack).
The average UK rent rose by 1.3% in August to £1,325, 5.1% higher than the same time last year (HomeLet).
Void periods lengthened to 15 days in August, up from 11 days in July with Greater London the only region to see a reduction (Goodlord).
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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