As we’re now into the spring of things in 2023, we’ve had another positive couple of months here at Orchards, in our sales and lettings departments alike.
Sales
A solid selection of properties have been listed by ourselves in March and April, appealing to first-time buyers and investors, to those looking for a luxury lifestyle, and all the in between. In our local areas, a grand total of 223 properties came to the market, which is more than the same period of 2022, when 189 properties were launched for sale. This 18% increase highlights that moving home is still very much happening across the region, with the market steadily improving since the tail-end of last year.
Offers have been accepted on our properties within an average of 36 days from launch. This is slightly faster than March and April 2022, likely due to the recent reduction in interest rates compared to the first months of 2023. In comparison to other local agents, we’re receiving acceptable offers sooner, with average time on the market for them sitting at 39 to 57 days.
We’re pleased to have helped lots of buyers and sellers on their moving journey, with 10 completions occurring in March and April. Sold prices ranged from £550,000 to £1,100,000, with an average price of £850,000 for this period, while the same period of 2022 saw an average price of £697,000. As a general rule of thumb, we’re seeing transactions take 14 weeks from offer to completion on average, faster than last year, perhaps due to less backlog from sales needing mortgage extensions, or new mortgage offers due to lenders withdrawing products from the market.
For those borrowing in order to buy, mortgages are also steadily improving. Fixed term rates are available from 3.83%, and tracker rates sit at 4.39%. Rates are still decreasing since the spike of 2022, and evidence suggests this is set to continue, which is great for both new mortgages and renewals. Interestingly, it’s cheaper to fix your mortgage for a longer period such as five or ten years than it is two years, indicating the banks’ belief that the base rate is likely to reduce in the next two years.
Lettings
As for the lettings side, we listed 18 rental properties in March and April. This compares to 19 properties for the same time in 2022, showing a slight decrease from 2022 to 2023. As is usual, there aren’t enough properties hitting the rental market as there are ready and waiting tenants, who are looking for a wide variety of homes. We’re always eager to match landlords’ properties with our database of pre-approved tenants.
During March and April 2023, the average monthly rent was £1,150pcm, sitting against £950pcm for March and April 2022. That’s a 21% increase in a year. Homes are letting swiftly and successfully, with speed down to lower levels of stock compared to demand, with tenants looking to stay in their property for longer if they can secure a lower rental price by staying put. The lack of new landlords coming to the market due to increased costs, interest rates and tax liabilities is also driving prices up due to less new stock coming to the market.
For the buy-to-let market, mortgage interest rates start from 4.79% fixed term mortgages on an 80% LTV. Sought-after areas, wanted properties, renowned schooling and excellent commuter links all add up to high demand in our areas, making a rental investment as appealing as ever.
Adam Barker, Director, gives his thoughts on the last two months in property:
“It’s a difficult market to read – some properties are achieving record prices, while others are having to reduce in price. There’s certainly appetite, and buyers are keen to secure good properties. Pair that with intertest rates calming down, and on the whole, there’s a pretty positive feeling in the sales market. Lettings on the other hand feels like a market that’s not quite in control. We need more new landlords entering the market to slow down the rental price growth, because we’re starting to see perfectly decent tenants getting priced out of the market and struggling on affordability.”
To discuss all aspects of buying, selling, letting or renting, contact us on 01525 40 22 66 or email ampthill@orchards.co.uk
