In the first two months of 2023, here at Orchards we’ve had a positive period in both our sales and lettings departments.
Sales
January and February saw us list a varied selection of properties. A total of 240 new properties hit the market in our local areas over the last two months, which contrasts with the same timeframe in 2022, when there were 174 new listings. This 38% increase shows the market is still moving (quite literally), despite the events of late 2022.
The average time between listing with Orchards to accepting an offer with us is 21-28 days. A faster period than this time last year, perhaps because of demand decreasing in line with the cost of running a home and the rates of borrowing. We’re still accepting offers on homes sooner than other local agents, whose average time on the market is 30-37 days.
10 completions took place in January and February, achieving sold prices ranging from £305,000 to £925,000, averaging at £470,000. The typical period between accepting an offer and completing the transaction sits at 12 weeks. The same two months of 2022 saw an average sales price of £400,000. This increase shows property continues to increase in value, especially as a longer-term investment.
Regarding all-important mortgages, although the Bank of England continues to raise the base rate, currently at 4%, fixed term interest rates sit from 4.24%, and tracker mortgages compare at 7.1%. Rates have been slowly but surely decreasing since the end of last year, settling from the Truss fiasco.
Lettings
Orchards launched 11 properties to the lettings market in January and February. 2022 saw 15 properties newly available to rent, 27% up on this year. There’s a variation of properties coming to market, but not nearly enough. There are more tenants than properties available, and all have varying requirements. We’re always in need of properties of any size and description for waiting, pre-approved tenants.
The average monthly rent on newly let homes was £1,200pcm between January and February 2023. Compared to this time last year, that’s a 17% increase against the £1,000pcm average. Properties are almost letting instantaneously upon going to market, and this faster timeframe is likely due to the lack of available properties against the number of active tenants.
Mortgage interest rates for the buy-to-let market are at c.3.9% for variable mortgages on an 80% LTV. The first five-year fixed term starts at 4.34%. With the areas we cover being desirable, well-connected and appealing, high rental potential makes the right property at the right price a great investment.
Adam Barker, Director, shares what the last two months have shown:
“During January and February, we’ve noticed buyers regaining more confidence in the market, and banks slowly bringing their rates down. We’ve started the year in a more positive place than we anticipated due to media speculation at the end of 2022. Lettings continues to grow, with the demand for rentals increasing on a daily basis.”
To discuss all aspects of buying, selling, letting or renting, contact us on 01525 40 22 66 or email ampthill@orchards.co.uk
