Welcome to our latest update on the property market
The summer market is well behind us now and we look forward to what autumn has in store for us. Traditionally, September and October yield some good results and two weeks into September, this period has already started in a positive fashion. However, it is by no means plain sailing.
The stock of property for sale remains incredibly high and whilst there are a good number of buyers out in force there are simply not enough to meet the supply. Due to the high volume of homes for sale there are good levels of sales being agreed but the choice for buyers means that many properties will remain on the market for several weeks or months.
Seemingly, and understandably there seems to be a great deal of attention on the budget which we now know is not until the end of November. A lot of the talk and rumours seem to centre around the property market and changes that could be made to stamp duty, council tax, capital gains and national insurance on landlords’ rental income. The truth is, who knows, but as is often the case, the rumours tend to be more of a problem that the actual policies put in place but, there is no doubt that it will impact the market to some extent. Oh, to have a crystal ball right now!!
We often like to share the latest news from inside the industry and market commentary from trusted sources. Rightmove are certainly at the forefront of the market, and their insights are always a good read, so we have shared that below as it covers some really valid points, relevant to what we are experiencing here in our local area.
Annual price fall driven by south, which could be harder hit by rumoured property taxes
The average price of property coming to the market for sale rises by 0.4% (+£1,517) this month to £370,257. However, average new seller asking prices are now 0.1% below this time last year following several months of muted price growth
The dip in annual prices is driven by London and the south, as the south underperforms the rest of Great Britain:
* Competitive pricing is even more vital in the south. The number of homes for sale in the south is up by 9% on 2024, compared with 2% elsewhere, and it takes an average of five days longer to find a buyer
* However, the number of sales being agreed is 4% ahead of this time last year. In the south of England, it is still up by 3% year-on-year, while it’s up by 5% across the rest of Great Britain
Rightmove’s real-time data shows no immediate reaction from movers to property tax rumours. However, jitters around what could happen in the Autumn Budget risk slowing the parts of the market that are already underperforming:
In London, more than half (59%) of agreed property sales so far this year have been over £500,000 and would be subject to the speculated new tax replacing stamp duty, versus an average of 22% outside London
Ahead of the September Bank Rate decision, it’s over a year since the first Bank Rate cut for four years in August 2024. Since then, Rightmove’s Mortgage Tracker shows the average two-year fixed mortgage rate has reduced from 5.03% to 4.52%:
* Improved buyer affordability, sensible pricing and high choice of property are encouraging many to buy keeping sales agreed on track.
“We’d expect to see a slight uptick in new seller asking prices in September, with the traditional back to school season boosting activity heading into autumn. This year’s 0.4% September price rise is a little lower than the norm, which is an average of 0.6% at this time of year. However, prices have now dipped slightly from where they were at this time last year after a summer of competitive pricing by sellers, and it’s the south of England which is driving this small dip. It’s the sensible and attractive seller pricing we’ve been reporting which has been helping to drive more sales activity compared to last year. Static house prices, rising wages, and lower mortgage rates all assist buyer affordability, which has led to an increase in the number of sales agreed compared to a year ago.
“Rumours of property tax changes began swirling in mid-August, and with the Budget itself not arriving until the end of November, this kind of extended uncertainty can affect market activity, especially in the higher price brackets. Movers want to be confident in planning their moving costs. Our real-time data has not yet picked up any major shifts, however it’s understandable that those who could be negatively affected by the rumoured changes might be in the process of reassessing their short- and medium-term plans. Our analysis highlights how London and south England-centric the changes would be, and these are the areas that are already performing less strongly.”
We hope that this has given you an honest, balanced view of the property market today but as always, we would be delighted to hear from you on a personal level with any questions you may have.
Warmest wishes
Adam, Mark & the team.
