Market Comment (February 2023)
Traditionally, spring is the busiest time of year in the UK housing market, and one of the standard features of this time of year is that asking prices tend to rise. This situation is because there is greater demand for homes at this time of year, and when this happens, vendors tend to increase their prices because of this competitive market.
Little change in asking prices at the moment
However, according to the Rightmove House Price Index, asking prices haven’t risen too much. As of the end of February, Rightmove lists the average asking price of property in Great Britain as £362,452. This is an increase of £14, the smallest recorded increase from January to February.
Rightmove believe this is a positive sign for the market because many experts suggested house prices were set to drop at this time.
Tim Bannister, from Rightmove said: “The big question this month was whether we’d see new sellers increasing their asking prices, which is what we usually see as we approach the spring selling season. This month’s flat average asking price indicates that many sellers are showing restraint when pricing their homes. We’re moving into a slower-paced market. Buyers will take longer to find the right home at the right price due to the higher cost of repaying a mortgage.”
The right time to sell?
Keeping with the topic of the UK housing market coming to life in spring, Tim Leonard, a personal finance expert at NerdWallet, has spoken about why this is the ideal time of year to sell your home. Tim said; “Spring is by far the best time of the year to sell your home, according to research from Rightmove. There are many factors that go into this, but March is the strongest month of the year for prospective sellers to join the market. For four out of the past five years, March has had the highest number of buyer enquiries per property for sale - and the exception was in 2020 when the housing market was shut down. April is the next strongest month of the year, followed by May.”
If you are keen to capitalise on this trend, we are more than happy to assist you.
Energy efficient homes make a massive difference to buyers
With energy bills remaining high and no indication that prices will fall, the impact of energy prices on property market decisions will become more prominent. This outcome makes information from the Home Builders Federation interesting; as they say, new build homeowners will save £3,117.85 on energy bills from April 2023 compared to people living in traditional homes.
The reasoning behind this lies that 85% of new build properties (flats and houses) have an EPC rating of A or B. Only 4% of existing properties have an EPC rating of A or B, making them harder to heat. The same study found that 53% of property buyers consider running costs when moving into the housing market.
Neil Jefferson, managing director of the Home Builders Federation, said: “Energy efficient new homes are saving owners thousands of pounds a year in running costs. In the face of mounting pressures on households across the country, the energy performance of a home is an increasing motivator for consumers considering a new home purchase.”
At Trading Places, we know the local market in Leytonstone, and we understand the national market. If you need any help, guidance or professional support, please contact us today.
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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