Property Market Update – May 2023
By Steve Cook – Partner Clarke Gammon
Local property market remains stable with mortgage approvals increasing.
The media’s obsession with the property market is notoriously fickle, as different publications constantly look to outdo each other with ever more sensational headline-grabbing stories. The stories are often speculative and more often than not confusing. This week, I have read stories from two different broadsheets reporting on press releases from the Halifax Bank, saying the housing market has ‘dipped’ in terms of price and another from the Nationwide Building Society, saying there had been a ‘surprise jump’ in prices.
Whilst both say the market has stabilised, the conflicting information adds uncertainty to those considering a move. So what is really happening to the property market? What these and many other stories on the current state of property market often don’t make clear is that the reported increases and decreases in property values are being measured in less than single percentage points. The reports are also not sector-focused but across the whole of the market price ranges, and not regionally focused but based on the UK as a whole. It’s also important to remember that they are based on each lender’s relatively small market share.
In my monthly market update, I often share statistics on market activity and prices, and generally reference the Rightmove house price index. I use this rather than specific lender reports as Rightmove offers a much larger data set, covering just about every property coming to the market from across the UK. The house price index is useful as it breaks down the data both regionally and by price sector (First time buyers etc).
Looking at the latest data from Rightmove, which confirms the average price of property coming to market increased by just 0.2% last month (April) for the UK as a whole, 0.3% in the South East. These figures are lower than the year-on-year average of 1.2% for this time of year. These 0.2% or 0.3% are tiny figures and in real terms equate to hundreds of pounds, and are impossible to quantify for any specific property. But essentially, what this means is the market is stable in terms of price, and for most currently considering a move is all they need to know.
Advice to sellers
Our advice to sellers considering putting their home on the market is that price is key, and that if properties are marketed sensibly they are selling. However, if owners are overly optimistic in terms of price, little or no interest is generated. Buyers are savvy, they know the market and know that it is not the seller’s market of last year.
The owners of properties that are priced correctly are taking advantage of the currently active late spring and early summer market. First-time buyer homes are particularly active, despite the economic headwinds. Rightmove confirms that first-time-buyer type properties hit a new record price this month. Faced with record rents, buying is still compelling for those first-time buyers who are able to clear the mortgage and deposit hurdles
The average first-time-buyer mortgage rate for a 5-year fixed, 15% deposit mortgage has now fallen to 4.46%, with the lowest rate for this mortgage type currently at 4.19%.
Sales agreed numbers have recovered to be in line with the more normal pre-pandemic market of March 2019, and have also exceeded last September’s level, after which they plunged by 21% following the mini-Budget aftershocks…
Award winners
On a personal note, I would like to congratulate our team at Haslemere for their achievement of being nominated and winning the Gold Standard Best Estate Agents in Haslemere from The British Property Awards. Well done!
I am also delighted to confirm that Clarke Gammon has achieved the ‘Standard of Excellence’ from the customer review firm ESTAS and has been shortlisted as finalists for 2023. Hopefully, we can go one step further and win at The ESTAS Awards in October.
Considering a move?
As the weather is warming up, so too is the property market, we are seeing an increased number of properties coming to the market and the best of the bunch always move quickly.
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If you are thinking of buying or selling your property, or need some help or advice on property related matters, please give me a call at our Liphook office, I’m always happy to help.
Steve Cook
Partner Clarke Gammon
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