Property Market Update August

Rightmove’s latest property market statistics for August have been released and they make for interesting reading. Some of the key points are;

  • The average price of property for sale coming to the market is in line with seasonal trends.

  • First-time buyer and second-stepper properties are selling the fastest.

  • There are 8% more properties being advertised for rent in the second quarter of this year compared to 2015.

  • 9 out of 10 regions across England have seen a rent increase from the previous quarter.

  • 3 out of 5 of the most in-demand areas in the country are based in the North-West.

SALES MARKET

Many predicted a negative impact for property in the UK after the decision to leave the EU in June. However, house prices are remaining on track with the market lull usually seen at this time of year. The price of property marketed in August is down by 1.2% from July.  Over the last six years, this month’s fall is exactly in line with the long-term average.

First-time buyer and second-stepper homes are the market’s best performing property types, with an average time to sell of 58 days (subject to contract.) They have also seen a lower price drop than the national average at 0.5% and 0.4% respectively.

RENTAL MARKET

Rightmove have reported an increase in new properties coming to the market of 8% in the second quarter of 2016 from 2015. This is likely as a result of a spike in investment from earlier in the year as investors aimed to beat the added stamp duty. It has created a rental supply boost which is good news for prospective tenants.

Average rents in 9 out of 10 regions have increased from the previous quarter. The North-West saw a rise of 2.2% in the second quarter of the year up to £633. Greater London was the only area where rents have dropped in value, although being honest it could hardly get any higher! The region saw a decrease of 1.1% to £1,998 per calendar month.

As well as a growth in rental values in the North-West, Rightmove has also stated that the Greater Manchester area has three of the top 5 most in-demand areas to rent in the UK (outside of London). Ashton-Under-Lyne, Stalybridge and Oldham. I suppose it makes sense for a city that has once again been voted as the UK’s best city to live in by the Global Liveability Survey!

Withington Branch Manager Antony Waring commented, “There have been a lot of negative predictions around the effect of the decision to leave the EU in the last few months on the property market. However for us normal service has continued. We have seen sales agreed, new instructions coming on to the books and enquiry levels similar to that of a few months ago.”

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