UK House Price Index – February 2024

info@iamtheagent.com — Wed, 21 Feb 2024 12:44:00 +0100

Early-bird buyers build market momentum but price sensitivity remains

Average new seller asking prices rise by 0.9% (+£3,091) this month to £362,839. The annual price change moves tentatively back into positive territory after 6 months of annual price falls, with prices up by 0.1% on a year ago.
Agreed sales in the first six weeks of 2024 are 16% higher than over the same period last year, and 3% higher than in the more normal market of 2019, indicating that many early-bird buyers feel that 2024 offers the right conditions to move.
The growing market momentum is also evidenced by the increase in activity of both buyers and sellers with 7% more new listings coming to market than last year, and a 7% upturn in the number of buyers enquiring.
However, the market remains very price-sensitive, and appears to be operating at two speeds, with properties that are priced accurately being snapped up by budget-conscious buyers, whilst over-priced properties are left on the shelf:
- It’s taking more than two weeks longer to find a buyer than at this time last year, with the average time to sell at its slowest since 2015, excluding the initial pandemic lockdown months of April & May 2020.
- Analysis shows that sellers who price right initially are far more likely to sell quickly.
With the 2024 Budget approaching, more support to help first-time buyers onto the ladder would be welcome, with activity levels lagging behind in this sector as mortgage rates stay elevated and saving for a deposit remains challenging.

Average new seller asking prices rise by 0.9% (+£3,091) this month to £362,839, in line with the seasonal rise we’d expect to see in February. Perhaps more noteworthy is that average prices are now up by 0.1% compared to this time last year, following annual falls in every month since August 2023, one of several signs of growing market momentum.

The number of sales agreed in the first six weeks of the year is 16% higher than in the same period last year, indicating that early-bird buyers feel that 2024 offers the right market conditions to move, and they are already seizing the opportunity. However, the market remains price-sensitive, with many buyers very budget-conscious. Sellers who are over-optimistic and think that the more positive market sentiment will let them try asking for too high a price, risk being left on the shelf and missing out on the important Spring moving season.

Sales agreed numbers are being supported by more buyer and seller activity. During the first six weeks of 2024, the number of properties coming on to the market was 7% higher than the same period last year, while the number of buyers enquiring to estate agents was 7% higher. The number of sales being agreed is now 3% higher than at this time in 2019, as these numbers continue their transition towards more normal levels.

Despite these positive activity numbers, the market appears to be operating at two speeds. We report that properties that are accurately and competitively priced are being snapped up by budget-conscious buyers who are keen to make 2024 their year to move, having paused during the uncertainty of 2023. However, properties that are over-priced will immediately stand out against more competitively priced neighbours and are being left on the shelf by price-sensitive buyers. Evidence of this is that despite higher activity levels than last year, it’s now taking an average seller more than two weeks (16 days) longer to successfully find a buyer than at the same time last year. The time to find a buyer is at its slowest since 2015, excluding the initial lockdown months of April and May 2020. Buyers now have more time to consider which property is right for them, making it even more important for sellers to price temptingly and stand out from the crowd. Rightmove analysis also shows that sellers who price right initially are far more likely to find a buyer and sell more quickly.

As the 2024 Budget approaches, data indicates that the first-time-buyer sector is most in need of government support, with buyer activity levels and sales in this sector the least improved compared to last year. While the mortgage market has recovered its stability, there are growing signs that the room for lenders to reduce rates further is narrowing, and that rates will settle at elevated levels for the near future. On top of this, inflation and cost-of-living pressures remain, making saving up a large enough deposit challenging for would-be first-time buyers.

Affordability trends

The first-time buyer monthly mortgage payment is based on Bank of England data of the averages for 90% LTV two year fixed mortgages from lenders, and the average asking price of a typical first-time buyer home (two bedrooms or fewer) using the Rightmove House Price Index. The equivalent monthly rent is calculated using the same property types (two bedrooms or fewer). The affordability to buy a first home is based on the Average Weekly Earnings (AWE) dataset from ONS multiplied by 4.5 to get the typical maximum that a person can borrow from a lender. The average asking price of a typical first-time buyer home is taken from the Rightmove House Price Index

Price & activity trends

Regional trends

London boroughs

Navigating the Maze: Overlooked Expenses of Selling Your House in the UK with I Am The Agent

info@iamtheagent.com — Fri, 9 Feb 2024 10:31:00 +0100

Introduction:

Selling a house can be an exciting yet complex journey, and as a homeowner, it's essential to be prepared for the various expenses that may arise throughout the process. While many focus on the potential profit, it's crucial to consider the often-overlooked expenses associated with selling a house in the UK. In this blog post, we'll shed light on these hidden costs and discuss how partnering with I Am The Agent can help you navigate them more efficiently while saving on estate agency fees and marketing costs.

1. **Estate Agent Fees:**

One of the primary costs associated with selling a house is the fee charged by estate agents. While this expense is well-known, the actual amount can vary. I Am The Agent provides a transparent and cost-effective solution, allowing you to save on traditional high-street estate agent fees while still benefiting from professional support.

2. **Conveyancing Costs:**

Conveyancing is the legal process of transferring property ownership. Solicitors or conveyancers handle this, and their fees are often overlooked. I Am The Agent can connect you with trusted conveyancing services, helping you understand and manage these essential legal costs.

3. **Energy Performance Certificate (EPC):**

In the UK, an Energy Performance Certificate is a legal requirement for selling a property. This certificate assesses the energy efficiency of your home. While obtaining an EPC is necessary, the associated costs can catch sellers off guard. I Am The Agent offers guidance on obtaining an EPC, ensuring compliance without unnecessary expenses.

4. **Home Repairs and Improvements:**

To attract potential buyers, your property may need repairs or improvements. Whether it's fixing a leaky roof, repainting, or addressing structural issues, these costs can add up. I Am The Agent provides valuable insights into cost-effective improvements that can enhance your property's appeal without breaking the bank.

5. **Removal Costs:**

The process of moving itself comes with expenses, from hiring a removal company to packing supplies. I Am The Agent can assist in planning and budgeting for these costs, helping you streamline the moving process.

6. **Capital Gains Tax:**

Depending on your circumstances, you may be liable for Capital Gains Tax on the profit made from selling your property. Understanding the tax implications is crucial, and seeking professional advice is recommended to navigate this aspect properly.

7. **Mortgage Early Repayment Charges:**

If you have an existing mortgage and choose to repay it early upon selling your property, you may incur early repayment charges. Understand potential charges and consider seeking professional advice to make informed financial decisions.

Conclusion:

Selling a house involves more than just listing it on the market. By partnering with I Am The Agent, you gain access to a wealth of resources and support that can help you navigate the often-overlooked expenses associated with selling a property in the UK. From transparent estate agent fees to guidance on legal processes and cost-effective improvements, I Am The Agent is your trusted partner in achieving a successful and financially sound property sale. Embrace the journey with confidence, knowing that you have a reliable ally by your side.