As summer draws to an end and autumn is upon us, we take a look over the last couple of months in the property market, for both sales and lettings.
Sales
July and August saw us list 21 new properties for sale, with a real mixture of homes coming to the market, from a £295,000 three-bedroom semi to a £1million 18th Century farmhouse. Compared to July and August of 2021, when there were 12 new listings, this is an increase of 75% for new instructions—testament that the post-pandemic property market is active.
It’s been taking around 23 days between a property hitting the market and a sale being agreed. A slower turnaround than this time last year, potentially due to a more disparate supply to meet the demand.
With 14 transactions completing in July and August, prices achieved were between £275,000 and £1.4million, with an average sales price of £605,000, and an average period of 21 weeks between an accepted offer and moving day. The average sales price for the same period of 2021 was £515,000. This increase in average prices highlights that prices are still on the up, but also that we’re finding ourselves as an agent expanding into a higher value marketplace.
We’ve noticed a real drive towards rural and larger properties, perhaps due to working from home becoming more common place, reducing the need to commute.
Mortgage rates have reached an average interest rate of 3.51% for two-year fixed interest rates and as low as 2.88% for 75% loan to value mortgages, which whilst higher, doesn’t seem to be affecting registration of new buyers. 253 applicants were added to our books over the last two months, all looking to purchase in the local areas. July and August 2021 saw around 212 new buyers, even though interest rates were set at a lower average to where they are right now—proof the percentage jump isn’t deterring those climbing or stepping onto the ladder.
Lettings
We were pleased to bring 25 properties to the rental market in July and August—up 39% on new instructions in comparison to this time last year.
Lets were agreed on 25 properties, achieving £1,100 on average, and an increase of nearly 19% against 2021’s average figure of £925. The time between listing a property for rent and the tenancy being agreed has been taking around 16 days. We’ve seen the process slow down since this time last year, perhaps due to concerns around the cost of living, and increased availability of stock.
We’ve registered 145 new renters in the last two months, bringing our total list of potential tenants to 575. We’ve seen increased demand for family homes with gardens, so we continue to target similar properties to assist with the demand.
Buy-to-let mortgage interest rates are currently sitting at around 3.41%, so purchasing a property to rent out is still a viable investment, especially considering the equity likely to be achieved long-term.
Adam Barker, Director, shares his view on how the market’s stood over recent weeks:
“August has historically been viewed as a bad time to sell or let your home; this year proved this opinion may be outdated, with continued strong performance across the board. With record prices still being achieved, and consistent sales and lets being agreed, the highly talked about ‘edge of the cliff’ doesn’t appear to be forthcoming. Instead, we’re just seeing the types of buyers entering the market and their motivations change. Buyers moving out of cities and direct commuter belts due to the need for commuting becoming less important. Even local buyers are keen to secure mortgages whilst interest rates are still at a historically low rate, and tenants are keen to gain outdoor and working-from-home space.”
To discuss all aspects of buying, selling, letting or renting, contact us on 01525 40 22 66 or email ampthill@orchards.co.uk
