Market Comment (December 2023)
With so many distractions and frankly more exciting activities to take care of in December, you’d be forgiven for thinking that December is a quiet month in the UK property market, and that is exactly how it has shaped up; however, the New Year is often time for a change, and if you are keen to move in 2024 we would love to help.
December asking prices drop are a gift to buyers
A drop in asking prices this December is a gift to homebuyers, with the fall of 1.9%, representing a shift of £6,966 to a new level of £355,177 represents a larger than is usually expected in December. Over the past two decades, the December drop has an average of 1.5%, so the negative shift of 1.9% possibly indicates homeowners are keen to sell and are willing to be more flexible when it comes to enticing buyers to check out their house.
Tim Bannister said: “With mortgage rates more settled and on a slow downward trend, potential movers who have been biding their time and waiting for calmer market conditions may decide to act in the early part of next year. Indeed, there’s always a big post-Christmas upturn in Rightmove traffic, with early bird-buyers starting their search on Boxing Day. This year’s upturn will be eagerly anticipated by those who are keen to sell, especially family movers who are considering having an estate agent board put up as the Christmas tree comes down.”
It is interesting to note Tim Bannister refer to the Boxing Day Bounce. This has been a phenomenon in the UK property industry for around a decade, if not longer. On the one hand, you’d think people have better things to do with themselves on Boxing Day than to look at new homes, but equally, you can see why it is the perfect day to peruse properties.
For many people, Boxing Day is a day of rest, with perhaps the most strenuous activity featuring the opening of snacks and making sure you have the remote control handy to watch plenty of sport on TV! It highlights the nature of house buying now that figures rise when people are relaxing at home on the couch, with phone or tablet in hand.
If you spent your Christmas Dinner crowded around a table or perhaps sitting at an offshoot table because there wasn’t room to fit everyone together, you can see why a more spacious home would appeal. Similarly, if you have squeezed guests onto a couch or foldaway bed, or even an inflatable mattress, your guilt might lead you to look for a larger home.
Whatever the driving factor, the Boxing Day Bounce is real, and 2023 figures will likely follow the established pattern, albeit in truth many of those checking online will be gearing up for a Spring move, perhaps teeing up mum and dad to help with their deposit.
Tim Bannister also said: “Rightmove’s property expert Tim Bannister said: “We typically see a post-Christmas upturn in buyer activity, with early-bird buyers finishing off their turkey dinners and starting their search for a new home for the new year. It’s a key reason why we’re seeing more new sellers come to market on Boxing Day, ready for their properties to be the first seen by prospective new buyers. However, with activity typically increasing from Boxing Day into January, sellers planning to come to market later in January still have time to capitalise on the renewed buyer activity.”
Rightmove’s expert concluded by saying: “This year’s upturn will be eagerly anticipated by those who are keen to sell, who may have been holding off due to the disorderly mortgage market earlier this year. Many will also be watching the scale of the upturn as an early sign of building momentum as we progress through the winter and into the important spring selling season and year ahead.”
Green Mortgages Likely To Be A Big Factor In 2024
A trend of 2023 that is set to continue into 2024 (and beyond) is the increasing number of environmentally focused mortgages. A new study by Mortgage Advice Bureau suggests 57% of mortgage lenders offer green mortgage deals, which is a 4% increase on the 2022 figures.
With an increasing number of buyers keen to make environmental decisions, and virtually everyone looking to save money without compromising on their quality of life, it is easy to see why the energy efficiency rating of a home is so vital for buyers, and the property industry these days.
Ben Thompson, Deputy CEO of Mortgage Advice Bureau, said: “Climate change is an issue we all must act on, and the uptick in green mortgage products on the market is encouraging news. It’s important that this shift stays front of mind for both the industry and property owners, as energy bills and what we can do on an individual level to reduce our climate impact stays firmly in the spotlight.”
The study, which spoke with some of the leading lenders in the UK mortgage market suggests 59% of respondents believe green mortgages or energy-efficient options will become an integral part of the mortgage market. 12% of lenders said they believe green mortgages will become standard in the industry, replacing what we expect of mortgages in the present day.
If you would like to learn more about Leytonstone, what the area has to offer, and how to achieve your goals in the local property market, we can help. To arrange an appointment, call us on 020 8558 1147 or send us an email at info@tradingplacesproperty.com
You will find Trading Places Estate and Letting Agents at 46 Church Lane, Leytonstone, London, E11 1HE; and we look forward to assisting you.
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