State of your local property market: November 2023
The British property market is taking a snooze this autumn as buyers snuggle up in their homes, leading to dull prices. But, for the clever few who dare to venture out, the hunt for a dream home is on! With less competition, the best properties are just waiting to be snapped up.
The current landscape
As the end of 2023 approaches, the National Association of Property Buyers (NAPB) has noted "hopeful signs" in the property market, indicating a possible surge in activity leading up to the holiday season. Jonathan Rolande, spokesperson for NAPB, predicts that the market may defy the recent trend of falling prices. The current increase in property market activity could prevent further price declines, boost the industry, and attract landlords back to the market. Higher rents and low-interest rates may also encourage people to invest in property.
Despite challenges, experts have a cautious optimism about the property market's future.
We spoke with owner of Cooper Adams, Shaun Adams to hear how he has found business reflecting on November activity “It’s been a tough year but interest rates and inflation has peaked.
Inflation is falling fast and although the Bank of England base rate hasn’t changed yet, lenders are anticipating a drop and are lowering mortgage rates.
Prices have dropped back and if you want to sell you need to make sure you are competitively priced as well as great marketing.” To read more about Overpricing your home could mean you sell for less than it otherwise might have.
Shaun added, “the best time to buy could be now if prices have bottomed out.
In terms of lettings, prices have levelled more now and properties in West Sussex are taking longer to let if priced too high”.
Mortgage rates
Homeowners can breathe a sigh of relief this month, as better-than-expected inflation figures have prompted lenders to reduce fixed mortgage rates. The possibility that interest rates have peaked is also offering hope. However, it's still essential to shop around for the best mortgage rates in the UK to ensure you get the most favourable deal.
Keep your trusted estate agents and mortgage advisors close to support you on your journey and help secure you the best deal moving forwards.
Top mortgage rates this week: NatWest, Halifax, and Virgin Money take the lead with the following offerings:
Your home may be repossessed if you do not keep up repayments on your mortgage.
Despite mortgage rates remaining high compared to recent historically low levels, the mortgage market has become significantly more stable. Those buyers who had to put their home-moving plans on hold during the last year may find that the start of this year is the perfect opportunity to return. With better planning, they can now make informed decisions about what they can afford.
Contact the Cooper Adams team to speak to Mark or Jack about your mortgage. They can help you choose the best lender for you and lock in the lowest rate. If rates drop again they will lock in the new rate, if rates increase slightly you will have been locked in at a lower rate. This can be started six months in advance.
Rental market review
Has the rental market peaked?
We spoke to Sam Dunnings, Head of lettings at Cooper Adams to hear his take on things.
“I have worked in the industry for nearly 20 years, I have been through most of the property industry's ups and downs, from the 2008 financial crisis, Covid 19 and now the cost of living crisis.
For me lettings has always been a consistent market with long periods of very little properties available. This year we have seen rental increases of around 35% in our BN16 postcodes. Is this sustainable? In my opinion, no.
I feel that rents have now reached the peak and gradually will start to plateau off. Whilst we have not had to reduce stock the demand is far less than what it was in 2023, where we could list one property and have up to 35 enquiries!
The good news for tenants looking to move is that most do not like to do the move in the winter! Landlords are keen to have their properties occupied! So if you see something you like, usually at this time of year there is a deal to be had! Whether it is 25% off the first month's rent or a little off the asking price, give it a go!”
The road ahead
Now is an opportune moment to rent, as prices have hit their highest point while the stock has increased. Take advantage of this time of year when rents are generally lower.
Rightmove’s property expert Tim Bannister shared his views on what 2024 has in store for the property market - “the underlying level of good demand at the right price makes it unlikely that we will see a more significant drop in prices next year. Our research shows that pricing right at the outset maximises the initial impact among local buyers and gives new sellers a much greater likelihood of a successful sale.
Compared to the pandemic years, buyers now have a higher chance of finding homes for sale in their desired location that meet their criteria. This has put them in a stronger position to negotiate prices and take their time before making a decision. Despite this, the number of available homes for sale has only recently returned to pre-pandemic levels, and there is no indication of an impending surge of new listings. With a greater selection of homes available and fewer buyers in the market, sellers who are willing to price their properties competitively will stand out and attract potential buyers' attention.