11 Oct Property Market Insights – September 2021
September 2021 has been an exceptional month. The Stamp Duty Holiday which was introduced by the Government in July 2020 has now finally come to an end. In a rush to beat the 30th September deadline, we’ve seen a phenomenal number of transactions complete to make savings. But what happens now? We explore and predict the UK and local market trends below:
Hottest ever competition to buy a home and highest ever prices
National average asking prices of newly marketed properties have risen by 0.3% (+£1,091)* this month to hit a new all-time high of £338,462. This new record high is only £15 higher than the previous record set in July, a sign that prices are now stabilising. This recent surge in prices might be old news, but given that this increase can equate to around £30,000-£40,000 more than a year ago, really shows how prices have soared of late.
September saw record numbers of buyers snap up homes despite 11% less stock available to choose from compared with September 2019, and a 30% decrease in stock compared with September 2020.
The number of properties sold in September 2021 compared with pre-pandemic September 2019 was 14% up
Despite the traditional summer holiday lull, fierce competition continues among buyers for the record low number of available properties for sale. That competition is hotter than ever, with buyer demand per property for sale more than double that of pre-pandemic levels in 2019.
Nevertheless, as we enter the busy autumn period, there are early signs of more properties coming to market, which may help to slowly rebuild buyer choice. Buyers who have already sold their own property, have the cash to buy without selling, or are first time buyers with a mortgage agreed will be in the most powerful position to secure the best of any additional autumn choice.
Predictions for the coming months
The scene is now set for a better-balanced autumn moving season, with some early signs of a much-needed increase in the number of properties coming to market. In the first two weeks of September, the number of new listings is up by 14% compared to the last two weeks of August. In turn more choice of properties encourages more current owners to come to market if they are looking for an onward purchase, and this greater liquidity is another factor in easing further upwards price pressure.
Those looking to purchase onwards should be strongly encouraged by the latest market data, rather than feel reluctant to list their homes before they have found somewhere to buy. Realistically, securing your next property is almost impossible unless you already have a buyer of your own lined up. More sellers need to allow us to find buyers for them on a subject to contract, no sale no fee basis, which in turn will increase the volume of property on the market to everyone’s advantage.
While Autumn may seem slightly quieter (compared with the recent frenzy of the past 6-12 months), the desire to change our lifestyles due to the pandemic and new working trends isn’t likely to fade, so we anticipate activity levels remaining higher than usual for this time of year. Autumn is traditionally a busy period, and, as those owners who have hesitated thus far this year, whilst waiting to see how the property market would fare, now see these next few months before Christmas as an opportunity to belatedly get their moving plans underway.
The frenetic pace of this year’s market may also have put some potential movers off, but there are signs of a return of some normality. This means those waiting until things calm down are now in the market to buy. Combine this ambition to move with mortgage price wars, low interest rates (often under 1%) across the market, you’ve a recipe for continued buyer demand and no signs of the ‘cliff edge’ that has been banded around by many pessimists.
It’s still a strong sellers’ market in most of the country, those looking to purchase need to do all in their power to maximise their appeal to sellers, who will often have several offers, and will usually choose the one that gives them the best chance of a quick sale.
The most successful buyers are using tactics such as ‘sell before you buy’ to increase their buying power in this competitive market. Need advice on how to secure your ideal home? Contact us today and we’ll help put you in pole position when it comes to purchasing your next home.
Current Market Demographics – For Sale
At the time of publishing, there are 714 properties for sale in our area**.
Currently makes up 19.5% of properties for sale in the area, with 150 properties on the market. The average price currently stands at £562,680. Typically, properties of this type are spending 87 days on market.
Currently makes up 28.3% of properties for sale in the area, with 197 properties on the market. The average price currently stands at £269,109. Typically, properties of this type are spending 81 days on market.
Currently makes up 22% of properties for sale in the area, with 155 properties on the market. The average price currently stands at £258,814. Typically, properties of this type are spending 137 days on market.
Currently makes up 30.2% of properties for sale in the area, with 212 properties on the market. The average price currently stands at £153,038. Typically, properties of this type are spending 248 days on market.
For each area, these figures are as follows:
Current Market Demographics – To Let
At the time of publishing, there are 185 properties for rent in the area.
Average rental price by type –
Room: £442 pcm
Flat: £757 pcm
House: £885 pcm
Are you thinking of selling? Book your free, no-obligation market appraisal with your local property specialists. Hassle free, accurate and comprehensive. Find out the market value of your home now.
*Rightmove House Price Index
**Current house data in LS18, LS19, LS16, LS20, LS21, BD10, LS28, LS13, LS12 and LS5 for all agents and represents the actual number of homes for sale, asking prices, time to sell and percentage calculated daily from the properties in the Home.co.uk property search. Accurate at time of publishing on 11/01/2021.