A lacklustre Spring Budget with no direct help for first-time buyers or mortgage market innovations has slowed buyer demand although the number of sales being agreed is now 13% higher than this time last year, latest data from Rightmove reveals.

While demand may have eased it’s still 8% above last year and average asking prices have risen 1.5% (+£5,279) to £368,118 – higher than the historic average March increase of 1.0% and the biggest for 10 months.

But the average time to find a buyer is 71 days, the longest at this time of year since 2019 with over-optimistically priced sellers are taking longer to find a buyer.

Tim Bannister, Rightmove

Tim Bannister, Rightmove’s Director of Property Science, says: “The stronger than usual price growth this March indicates that new sellers are feeling much more confident.

“Despite the above average price increases in this opening three months of the year, asking prices are still £4,776 below their peak in May 2023.

For those who can afford to buy and have yet to take action to move this year, this may provide a window of opportunity to buy as we now seem to be past the bottom of the market.”

But he warns: “We know from last year how quickly the picture can change with some negative economic news or surprises.

“Buyer affordability remains stretched and higher mortgage rates are an ongoing challenge. With the market still sensitive to pricing and external events, some caution and willingness to negotiate is advised for sellers who are keen to find a buyer in the Spring market.”

INTERSTING TRENDS

Jeremy Leaf, north London estate agent and a former RICS residential chairman, says: “Although these are asking or aspirational prices, rather than selling prices of new listings, this data reflects some interesting market trends, which we’ve also seen on the ground.

Jeremy Leaf

“More listings mean buyers are often spoilt for choice, so are not rushing to take the plunge. Some were holding back from making offers in expectation of Budget giveaways or further mortgage rate cuts which have not really materialised.”

For months, people have taken a hit on their property prices.”

Nathan Emerson, Chief Executive of Propertymark, says: “Following three years of economic turmoil, Propertymark is hopeful that we are now witnessing a positive trend towards increased prosperity in the housing market.

Nathan Emerson, Propertymark

“For months, people have taken a hit on their property prices in order to find an affordable middle ground to enable a home move.

“Now that balance is being better struck and with interest rates remaining stable, we are seeing signs of normality and strong overall indicators now is an attractive time to buy or sell property.

“Our member agents have reported an 80% increase in the number of new properties available and a 129% increase in the number of market appraisals undertaken, showing there is growing appetite amongst buyers and sellers alike.”

AFFORDABILITY

Marc von Grundherr, Director of Benham and Reeves, adds: “While mortgage affordability remains an issue, it certainly hasn’t dampened the appetite of London buyers and we’ve continued to see a high level of activity at all price thresholds, but particularly across the super-prime market.

Marc von Grundherr, Benham and Reeves

“Buyers at the very top end of the ladder are acting with great confidence, with the higher cost of borrowing not presenting the same obstacle as the average homeowner.

“As a result, we’re seeing high demand for super-prime stock and many more buyers circling due to a more constrained supply of suitable properties in this sector.”

Tomer Aboody, MT Finance

Tomer Aboody, Director of lender MT Finance, says: “Sellers appear much more confident than they have for some time, with more stock coming to market and stronger asking prices on the back of hopes that interest rates have peaked and will start coming down soon, as inflation continues to fall.

“The Budget was disappointing with a lack of incentives to boost the market and transactions. Perhaps the government is keeping its powder dry for later in the year and closer to a general election when it might take some action, such as reducing stamp duty.”

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North Berwick, East Lothian has scooped the The Sunday Times Best Places to Live 2024 – the first Scottish winner in the 12-year history of the guide.

The Sunday Times’ expert judges visited locations in all shapes and sizes across the UK from the tiny Scottish island of Kerrera and the remote Welsh village of Presteigne to big cities such as Belfast, Liverpool and London.

HIGH STREET

All were assessed on factors from schools to transport, broadband speeds to culture, as well as access to green spaces and the health of the high street.

But the Scottish seaside town topped the list of 72 locations and was picked for its combination of a great high street, a great school, the great outdoors and family-friendly houses.

Helen Davies, The Sunday Times

The judges were impressed by its easy connections to Edinburgh and the way life revolves around the town’s two beaches as well as the ‘wealth of activities whatever your age’.

They also highlighted the thriving independent shops as a sign of the positive effect that small businesses can have on a community.

Helen Davies, Editorial Projects Director and Best Places to Live editor, says: “This guide is a celebration of towns, cities and villages that are each a fantastic place to live in 2024, from Dunkeld to Knutsford, Falmouth to Leeds. Wherever you are on the property ladder, there will be somewhere to suit you.”

UPWARDLY MOBILE

And she adds:  “These are all places where you can feel grounded as well as upwardly mobile: they have a mature sense of community, lively, supportive high streets and an eye to the future, whether that is eco-friendly measures, transport and regeneration, or imaginative inclusion of new housing.”

The annual guide also named 10 regional winners including Wivenhoe, Essex; Clerkenwell, London; Stirchley, Birmingham; Portstewart, Co Londonderry; Leeds; Stockport, Greater Manchester;  West End, Dundee; Folkestone, Kent; Sherborne, Dorset and Abergavenny, Monmouthshire.

Previous winners of the Best Places to Live in Britain title are Stamford, Lincolnshire (2013); Skipton, North Yorkshire (2014); Newnham, Cambridge (2015); Winchester, Hampshire (2016); Bristol (2017), York (2018), Salisbury, Wiltshire (2019), Altrincham, Cheshire (2020) Stroud, Gloucestershire (2021), Ilkley, West Yorkshire (2022) and Wadhurst, East Sussex (2023).

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Property consultancy Vail Williams has reported its best ever year, with increased revenues of £18.3 million, up 5%.

The results included the highest grossing single quarter since 1988 when the firm was founded.

‘People managers’

An internal reorganisation of how the firm’s 175 staff are managed played a part in the financial success, the firm says.

Matthew Samuel-Camps, Managing Partner, says: “We increased our team numbers, productivity improved, we did a lot more multi-disciplinary work and we continued to serve high-quality clients across a range of sectors.”

Nobody comes into this profession with the sole desire to manage staff.”

Samuel-Camps says a key contributor to success was introducing dedicated people managers into the business.

This move was the first phase of ‘decoupling’ people management from operational heads.

“Nobody comes into this profession with the sole desire to manage staff, so we have enabled them to get on with their jobs without distraction.

Specialist

“People are our most valuable asset and every time we put, say, a specialist surveyor or planner in charge of something else it is a compromise,” he says.

“We have a whole new learning and development philosophy being instilled into the business. We have expanded our training budget and are really focusing hard on training, personal development and inculcating expertise and experience throughout the business.”

New office

Vail Williams employs 175 people, of which more than 50 are partners, based across its 12 offices in the Midlands and south of England.

The firm recently opened a new office in Oxford in an extension of its Thames Valley region presence.

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An overwhelming number of renters are unable to buy a property, with very few saying they are tenants out of choice.

And a fifth of tenants have been renting for more than 20 years, according to analysis by property investment management firm Monta Capital.

Cannot afford

Around 85% of renters have no option, and cannot afford to buy their own home, the research shows.

Monta Capital commissioned a survey of 1,586 UK renters to find out whether renting is a lifestyle choice or necessity.

The survey reveals that 24% of tenants have been renting for 6-10 years, 22% for 10-15 years, 13% for up to 20 years, and 20% for more than 20 years.

Most common

When renters are asked if they have any plans to buy, 43% say no. And by far the most common reason is that they can’t see themselves ever being able to afford it (70%).

Of the 57% who say they do have ownership aspirations, 19% say it will be up to 10 years before they think about doing so, and less than 60% (59%) believe they’ll actually be able to achieve home ownership by then.

Thomas Balashev, CEO, Monta Capital

Thomas Balashev, CEO of Monta Capital, says: “If the vast majority of people are renting through necessity, I believe that there is a significant burden and moral obligation to provide them with quality, nourishing homes.”

Renters mortgage

A new mortgage aimed at ‘trapped’ renters who cannot afford a deposit, is now offered by Skipton Building Society.

Skipton, which owns estate agency giant Connells and Countrywide, unveiled the deposit-free mortgage last year.

The mortgage is approved based on a tenant’s track record of paying rent.

The post Almost all renters unable to buy a property, new findings reveal appeared first on The Negotiator.

Houses on sought after corner plots are worth £20,000 or 5% more than neighbouring properties, new research reveals.

The findings from quick-sale specialists Open Property Group put a value on the long-recognised fact that a corner location is often more attractive to buyers.

Only 5% of homes fulfil the criteria though as a corner plot, which makes them even more popular.

Premium

Homes in corner locations command an average asking price of £388,163, the research shows. Whereas houses of comparable size without the benefit of a corner plot position, are going for £367,867.

So this means that a corner plot property commands a premium of 5.5%, or £20,296.

Potential

Additional on-street parking, more outdoor space around the property, and the potential to extend, are all reasons corner plots are worth more.

In London, the current house price premium for a corner plot property is 10.4% or £83,004.

In the North East, a corner plot property also commands a healthy premium of 10.3%, but with the region home to lower house prices than the capital, this equates to just £23,212.

Commanding

The North West is home to the third highest corner plot premium at 7.2%, with properties commanding £22,006 more, while even in the East of England where this premium sits at just 3.8%, it will still bag £17,078 more than a property without a corner plot.

Those with a corner plot property could be quids in …  without having lifted a finger or paintbrush.”

Jason Harris-Cohen, CEO, Open Property Group

Jason Harris-Cohen, CEO of Open Property Group, says: “Those with a corner plot property could be quids in without even knowing it, or without having lifted a finger or paintbrush.

“It might not be something you have considered before, but if you have a corner plot property you can rest assured that it should not only attract a greater degree of attention, but it should also command a better price than your neighbours.”

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Buyer enquiries and listings heading upwards has created a more upbeat picture for sales as house prices stabilise and 12-month predictions show a return to growth, the RICS UK Residential Survey reveals this morning.

And although average stock levels on estate agents books now sit at 42 properties – the highest since February 2021 – concerns over the future direction of mortgage rates and the Bank of England’s interest rate decision next Thursday is likely stalling the market.

NEW BUYER ENQUIRIES

RICS’ latest data shows new buyer enquiries positive for the second successive month (+6% net balance) and an upwards trend in buyer demand with most regions across the UK now shown a recovery in buyer interest.

Agreed sales were flat in February (-3% net balance) and although this is less positive than in January RICS says that it still signals a stronger trend in sales.

Source: RICS

Meanwhile in the lettings market, tenant demand continues to rise although landlord instructions are still dwindling pointing to higher rents still to come.

CRITICAL FACTOR

Simon Rubinsohn, RICS Chief Economist, says: “Whether the increase in stock coming back to the market will be sustained is likely to be a critical factor in explaining how things play out over the balance of the year especially with new build likely to remain constrained.

Simon Rubinsohn, RICS

“Significantly, the rise in the number of appraisals taking place points in the right direction. And the government will be hoping that this trend is given a boost by the change to CGT announced in the Budget.”

And he adds: “There are signs that the relentless upward trend in private rents is losing momentum but fresh demand is still comfortably outstripping supply in this area which suggests there is unlikely to any significant relief for tenants.”

INDUSTRY VIEWS

Across the UK agents views are somewhat mixed.

Tom Bill, Knight Frank

Tom Bill, Head of UK Residential Research at Knight Frank, says: “The economic data has fluctuated since Christmas but the direction of travel for the housing market is up as mortgage rates ultimately head in the opposite direction.

“Ironically, recent weakness in the jobs market is a positive sign for buyers and sellers as pressure on the Bank grows to cut rates sooner rather than later, leading to more mortgages starting with a 3. For anyone in the property market trying to time their decision, they would be well-advised to follow employment trends closely this year.”

And he adds: “The Chancellor cut capital gains tax on residential property in an attempt to free up houses by encouraging more landlords to sell, and some may do just that after a series of financial disincentives in recent years. However, politics once again trumped economics in the housing market as fewer rental properties means more upwards pressure on rents.”

The perfect storm for the market.”

Neil Foster, Hadrian Property Partners

Neil Foster, Partner at Hexham-based Hadrian Property Partners, says: “The buying frenzy appears to have abated but the market remains starved of good quality stock with too many potential vendors unwilling to enter the ring until stock levels show signs of improving.”

And he adds: “The perfect storm for the market, albeit with little affect (so far) on prices.”

The sales market is still buoyant.”

Ben Waites, Walker Singleton

Ben Waites, Director at Walker Singleton in Halifax, says: “The sales market is still buoyant, although lack of new build homes is still impacting on the general market.

“Many larger homes are underoccupied, with owners unable to find suitable, modern, energy efficient homes and accessible homes to move to.”

Christopher Clark, Chartered Surveyor at Ely Langley Greig in Eastleigh, says: “The residential market is slowly recovering with increased sales.

“It’s too early to see any evidence of higher prices being paid but providing there are no unexpected shocks lurking around the corner we may see some improvement in values during the next quarter.”

The market is showing signs of recovery.”

Peter Buckingham, Andrew Granger & Co

In Market Harborough, Peter Buckingham, an Estate Agent at  Andrew Granger & Co, says: “The market is showing signs of recovery as activity improves as we head towards the traditionally busy Spring period.

“The recent budget seems to have given buyers an air of confidence to consider returning to the marketplace, albeit with some caution.”

The market is messy with more fall throughs.”

Jeff Cole, Cole Rayment & White

Jeff Cole, Partner at Wadebridge-based Cole Rayment & White, says: “The market is messy with more fall throughs than usual.

“Chains are a problem with valuers and buyers being more cautious generally. However still a good level of viewings and with Spring we expect a better time as and when the weather picks up.”

Melfyn Williams, Williams And Goodwin

Meanwhile Melfyn Williams, Director of Williams & Goodwin in Anglesey, says: “The current housing market presents an interesting landscape.

“It’s a market that rewards precision in pricing and patience from sellers. However, it’s not all doom and gloom. With interest rates seemingly reaching their peak, we’re starting to see a gradual return of confidence in the market.”

Interest rates will affect market sentiment.”

Charlie Barrett, DM Hall Chartered Surveyors

And Charlie Barrett, Associate at DM Hall Chartered Surveyors, in Edinburgh, says: “A busy January has hopefully kick started the Edinburgh and Midlothian market, following a typically slow December.

“Things will hopefully continue steadily into the traditionally much busier spring period.

“Activity is expected to increase but as always, interest rates will affect market sentiment.

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Signs of green shoots are appearing in the property market with buyers returning, supported by falling mortgage rates, wage growth outstripping inflation and a strong labour market.

With the Bank of England holding the interest rate at 5.25%, the consensus is that we are at the top of the rate rise cycle. Interest rate expectations in the monthly consensus forecasts have been improving over recent months as the economic outlook brightens.

Rates are predicted to start falling in the second half of the year, reaching 4.4% by the end of 2024. With inflation under control and forecast to fall to 2.2% by the end of the year, confidence in the housing market is improving.

DUAL DRIVERS

First-time buyers were biding their time during 2023 but it’s now expected that more first-time buyers will enter the market throughout the year, encouraged by the dual drivers of earnings growth and reduced mortgage rates improving affordability. According to Moneyfacts, the average 2-year and 5-year fixed-rate deals have now been falling for six consecutive months.

The availability of deals at the 95% loan-to-value tier has increased to 274 deals, its highest level since 2022, demonstrating that lenders are still keen to support borrowers with smaller deposits.

The start of 2024 has seen an upswing of new buyers, with agreed sales in the first six weeks of 2024 16% higher than the same period last year and 3% higher than in 2019 according to Rightmove.

MARKET MOMENTUM

Average asking prices rose 0.1% year-on-year in February, the first annual increase since August 2023 and an indication of growing market momentum.

Bank of England data revealed that the number of mortgage approvals rose for the fourth consecutive month to 55,227 in January, the highest level since October 2022. Meanwhile, the Chancellor announced in the Spring Budget that property gains tax is to be reduced to 24%, which may encourage landlords to sell, boosting transactions.

The December UK House Price Index from the Office for National Statistics showed a mixed picture around the UK. However, the Nationwide House Price Index reported month-on-month house price growth in February, increasing by 0.7% as market momentum grows.

INDICATIONS OF RECOVERY

According to the building society on an annual basis house prices saw a 1.2% increase in February, the first positive year-on-year growth since January 2023. This contributes to the emerging indications of recovery in the housing market. And according to the HM Treasury Average of Independent Forecasts although prices are forecast to soften slightly by -1.0% this year they are expected to recover by 0.8% in 2025.

Early signs for the market in 2024 are increasingly positive, with metrics for buyer demand, sales and new instructions all turning positive.

Choice for buyers is also on the rise, with Zoopla reporting that available homes for sale are 20% higher than a year ago.

BOOSTING CHANCES

Improved market conditions are boosting the chances of a sale, although sellers must continue to present their property well and at a reasonable price if they are serious about moving in 2024.

Half of agents in the Dataloft Inform Poll of Subscribers say offers are currently being accepted up to 5% below initial asking price; however, 15% report this level or higher.

This may well be underpinning house prices in many areas of the UK.”

Looking at housebuilding figures, just shy of 240,000 new builds were completed in 2023, the numbers holding up relatively well in a slower sales market but still short of the government’s 300,000-per-year target. In most UK regions there were fewer completions in 2023 than 2022, overall, down by -8.6%. This may well be underpinning house prices in many areas of the UK.

The average time to sell in the UK has slowed compared to the same time last year. However, with brighter days beckoning, momentum is likely to be injected into the market.

Over the last five years, with the exception of the Covid year of 2020, properties have taken 10 days less to sell in spring than winter, meaning this could be an ideal time for vendors to put their home on the market.

Iain McKenzie (main picture) is Chief Executive of The Guild of Property Professionals

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First-time buyers could me missing out on more than one and a half million empty and derelict properties across England and Wales worth over £500 billion.

The former homes are without any residents or tenants and have no plans for sale or redevelopment – they are just left completely abandoned and falling into disrepair.

HIDDEN GEMS

Now mortgage lender Together with the help of BBC TV host Lucy Alexander (main pic) is shining a light on the UK’s property ‘Hidden Gems’ in a nationwide campaign to highlight the opportunities for first time buyers and doer-uppers.

Some 1.55 million properties are sat abandoned and derelict in England and Wales which could deliver £531 billion in value if redeveloped and planning eased.

And more than half of Brits are encountering derelict and unloved buildings every week – with one in five (20%) seeing or walking by them every single day.

These homes are registered as completely ‘abandoned’.”

These homes are registered as completely ‘abandoned’ – with no usual or short-term residents in place, or use as a second home; without any clarity on plans for sale or redevelopment. Close to one in five empty homes (18%) have been vacant for at least six months.

Analysis by Together across England and Wales found over 240,000 abandoned detached homes – worth £123 billion – and just under 260,000 empty semi-detached homes and nearly 680,000 flats and apartments.

TV presenter and property expert and ‘Hidden Gems’ Campaign Ambassador Lucy Alexander says: “Throughout my TV career, I’ve seen my fair share of once-loved-now-neglected properties; some of which can quickly become an eyesore for local residents.

“It’s a real shame especially as so many people struggle to find affordable housing options and get that first foot onto the property ladder to begin with.”

POTENTIAL BUYERS

And she adds: “Spotting those property ‘hidden gems’ can really help potential buyers and developers open the doors to a newfound building opportunity – be it for housing, the creation of a new business or restorative project. So many existing sites today could see their former glory restored and new purpose given if the right support can be put in place.”

Elliot Vure, Corporate Director at Together, says: “There’s a clear case for addressing and solving the UK’s abandoned and crumbling properties. Part of the solution could be turning old and disused buildings into much needed homes – although this is by no means a magic bullet.

Buildings such these can offer a huge amount of potential for investors and developers.”

“Although many are way past their best, buildings such these can offer a huge amount of potential for investors and developers with a vision to restore them back to their former glory or repurpose them.”

He adds: “There also needs to be greater incentives to encourage homebuyers and investors to make the most of the 1.55million empty homes across England and Wales.

“In both cases, we need a joined up and pragmatic approach from the property industry and Government allowing us to reap the rewards of wider economic benefits, while preserving our architectural heritage and creating places for people to live.”

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