Category Market Insight

Getting the For Sale price right…

It is no surprise that homes that are priced ‘right’ sell more quickly. Such homes currently sell 26 days quicker than homes that have experienced a price reduction, according to new research by Rightmove.

Correctly priced properties are nearly twice as likely to be Sold Subject to Contract within four months of listing than those that have had their asking price reduced, 63% and 32% respectively.

It is estimated that around 16% of properties currently on the market have experienced a price reduction, properties reduced on average by 5% from their initial asking price.

Although sales volumes have risen since the market reopened, transactions in August up over 15% on July (HMRC), volumes remain lower than a year ago. Sellers who are serious in their intentions to sell are well advised to listen to their agent’s advice on local market pricing. 

Source: Dataloft, Rightmove, based on 300,000 newly listed properties.

Private residential rents are on the increase..

  • ONS reported a 1.5% annual increase in private rents in August. Agents are reporting an increase in tenant demand and positive short-term rent expectations, suggesting that many markets will be insulated from the end of the eviction ban and the furlough scheme.
  • All regions saw an increase in private rents. The South West had the biggest annual increase, 2.5%. Scotland had the smallest annual increase, 0.5% (ONS).
  • 13.1% of leases are set to expire in Q4 2020. Greater London has the highest proportion of tenancies expiring in Q4 2020, 15.3%. Wales has the lowest, 6.6% (Dataloft Rental Market Analytics).
  • 13.1% of leases are set to expire in Q4 2020. Greater London has the highest proportion of tenancies expiring in Q4 2020, 15.3%. Wales has the lowest, 6.6% (Dataloft Rental Market Analytics).
  • With increased tenant demand and subdued landlord instructions, +31% of agents expect an increase in rent over the next 3 months (RICS).

If you would like us to provide a free market rent review for your rental property please contact our Lettings team: http://www.taylorhillandbond.co.uk/contact-us.html

Peak season for the rental market…

The rental market is about to enter its busiest time of the year. Analysis from Dataloft Rental Market Analytics reveals that 40% of tenancies are set to expire in July, August and September.

Usually the surge in activity is a combination of students seeking accommodation, graduates starting new jobs and families looking to settle into new homes for the next academic year.

Post lockdown other factors may influence homemovers; more green space, closer to friends and family and a home office.

With 14% of tenancies set to expire in July, 16% in August and 10% in September, agents look set for a busy summer, whether renewals or new tenancies. Source: Dataloft Rental Market Analytics and Dataloft Homemover Survey.

Post Lockdown housing market demand surges…

There has been a huge surge of consumer interest in the housing market since May 13th, according to the Dataloft Demand Index.

In the week that lockdown was lifted, the Index climbed by 30%. By the end of May, it was 71% higher than a month earlier.

The Dataloft Demand Index suggests a strong start to the post-lockdown market, with agents’ sites receiving plenty of attention from prospective home movers.

The Index tracks the number of visits to agent’s local insight pages displaying the Dataloft Inform widget, making it a valuable indicator of potential demand.

Email inform@dataloft.co.uk to find out how to install the widget on your website. Read more in the blog ‘What is the Dataloft Demand Index?’ in ‘View from the loft’.

There’s no place like home on Fathers Day

Father’s Day is taking place on Sunday 21st June. Many will be looking forward to a socially distanced meet up, but with more than a quarter of young adults still living with parents, there is no need.

In the UK, 3.5 million young adults, aged between 20 and 34, live with their parents. This has increased by 46% over the last 2 decades.

More young adults live with parents as they are staying in education longer, formalising relationships and having children at older ages, and let’s not forget, the increased costs of renting or buying a home.

In the UK the average age of a first time buyer is 33 and if you choose to rent, on average 27% of income is spent on rent. Therefore, it is no surprise young adults are staying at home longer.

Having a garden and space to work from home now top criteria for buyers since lockdown…

  • Dataloft Homemover survey revealed that just under half of buyers’ home requirements have changed as a direct result of lockdown and Covid-19.
  • Just under a third of buyers said that having a garden has become a much more important consideration for them, a less urban area and being closer to family and friends has also increased.
  • The importance of space to work from home and broadband speed has increased, reflecting buyers expectations to work from home more often following lockdown. 
  • The Homemover survey suggests that Covid-19 is likely to have left a legacy of consumer behaviour change, shifting the relative importance of house buyer requirements. Source: Dataloft Homemover Survey 
  • Check the infographics library for separate slides of each image.

Lenders loosen mortgage criteria post lockdown..

  • Mortgage products are returning following a collapse in availability during lockdown. 77% of mortgage brokers expect lending to return to pre-pandemic levels within nine months.
  • The increase in mortgage products will be slow and steady, lenders are prioritising existing customers and the back log of around 350,000 sales which did not complete during lockdown.
  • An example of mortgages returning; the number of two-year fixed mortgage deals on a 90% and 95% LTV fell from 431 in March to 35 in May. At the beginning of June there were 61 products, although the growth is all in 90% products. 
  • It’s encouraging to see mortgage products return, but borrowers with a 5% deposit will find few fixed rate deals due to more cautious lenders.

Covid-19: How comfortable are vendors with physical viewings in their homes?

  • The recent Dataloft Homemover survey has bolstered reports of growing momentum in the housing market. The vast majority of vendors who were considering selling their homes before lockdown, still plan to do so.
  • So long as social distancing measures are enforced, 83% of vendors who are looking to sell their homes as soon as possible, say that they are either very or fairly comfortable with physical viewings taking place.
  • This renewed confidence in the market led to an 111% increase in sales viewings booked last week (Property Market Insights Report, Coadjute).
  • It is no surprise that those who are looking to delay their sale until next year were the most concerned with 8% insisting on digital viewings only. Source: Dataloft Homemover survey and Coadjute 
  • Check the infographics library for separate slides of each image.


Green shoots in the Housing Market…

Recent reports from the Office for National Statistics confirm that we are now starting to see some positive increases in the market.

Momentum is building across the UK housing market as spring approaches. The ONS (Office for National Statistics) report average property prices are rising in every region of the UK for the first time in nearly two years.

Property price growth is currently strongest across Yorkshire and the Humber and the East Midlands, with price growth across the capital at its strongest level since October 2017.

The Royal Institute of Chartered Surveyors (RICS) and Rightmove report there has been a notable increase in buyer demand in January with both the HMRC and Rightmove citing sales volumes are on the rise.

Both market appraisals and new instructions are on the up, according to both RICS and Rightmove although demand currently outpaces supply. Prospective vendors are well advised to contact their local agent.

Sharp increase in new buyer enquiries reported by Rightmove

  • There have been 1.3 million new buyer enquiries in the month since the election (13th December to 15th January), a 15% increase year-on-year according to Rightmove.
  • A 2.3% monthly increase in the price of properties coming to the market was also reported, the biggest monthly surge ever recorded for this time of year.
  • There certainly seems to be more optimism in the market. Provisional figures from the HMRC suggest a 6.8% year-on-year rise in sales volumes in December while house prices across the UK are rising at their strongest level in a year according to the official UK House Price Index. 
  • As a new dawn approaches with the UK set to leave the EU this Friday and a Budget planned for March 11th, will the Boris bounce keep bouncing?