September Update
After a busy August we came into September optimistic that the post-holiday bounce would kick in and provide us with a buoyant property market throughout September. We are delighted to say that this indeed has happened and the level of new buyer enquiries, viewings booked and, most importantly, sales agreed are running at excellent levels. Perhaps though the most surprising thing is the level of new instructions that we have been trusted with and asked to market in the first 16 days of September. Thus far, we have been asked to market 27 new properties which is generally the number that we market on average throughout an entire month.
As a result of this we have agreed 18 sales so far in September which represents an amazing 61.1% of sales agreed in the whole of Chandler’s Ford.
There certainly seems to be a positive feel about the market and a strong appetite amongst buyers and sellers to do business. We are confident that the rest of September will yield further good news.
Our sentiment is echoed by the recent market report from the Royal Institute of Chartered Surveyors (RICS) detailed beside as follows.
House price expectations over the next 12 months among agents and surveyors have turned positive for the first time since October 2022. This is the first time that the data has been positive since the aftermath of the 2022 Truss and Kwarteng mini-Budget that rattled financial markets.
When disaggregated, while most parts of the UK now show either a flat or modestly positive picture for house prices, Northern Ireland and Scotland appear to be the most optimistic.
Other market indicators are also turning more positive.
August’s survey results show a rise in the number of people looking to buy homes, with a net balance of +15 of respondents noticing an improvement – the most positive reading for the demand series since October 2021, albeit from a low base.
The newly agreed sales indicator posted a net balance reading of +6%, modestly higher than the figure of -1% seen last time.
Looking ahead, the near-term sales expectations measure recorded a net balance of +37% for the next three months, rising to +45% over 12 months.
A net balance of +7% anticipated a rise in fresh listings, while +23% reported that they were conducting more appraisals.
Simon Rubinsohn, chief economist for RICS, said: “The latest RICS survey captures an improvement in sentiment over the past month in the wake of the modest decline in mortgage rates with buyer interest improving, albeit from a relatively low base, and stock levels edging up.
“However, anecdotal remarks from respondents still demonstrate the need for realistic pricing to get deals done with uncertainty both around the scope for further interest rate cuts and the likely contents of the forthcoming Budget keeping the mood in check.”
In terms of the rental market, the latest Zoopla report makes for some interesting reading with the national perspective highlighted by the following points.
- Rental inflation slows to 5.4%, the lowest for almost three years.
- Supply/demand imbalance supports drawn out slowdown in rents.
- Number of homes for rent is rising but still a ¼ below 2019 levels.
- Potential further capital gains changes and legislation will result in more Landlords selling.
- Rental demand is cooling but is still 2x pre-pandemic levels.
- Rents are slowing fastest in cities lead by London but still rising quickly in towns and rural areas.
- It takes almost three years for rent rises to feed across the whole market.
- Rents are expected to rise 3%-4% over 2024 and the supply demand imbalance to remain into 2025 supporting continued growth in rents.
In summary, the demand for rental homes outweighs the supply and we see this increasing further with the number of Landlords exiting the market and deciding to sell, due to changes in the renters reform bill and anticipated increases in Capital Gains Tax.
The sales market remains steady and activity levels are strong.
Please look out for our next market review in October but in the meantime, and as always, get in touch with any questions you have.
Kind regards and warm wishes,
Adam & Mark
