Market Comment (March 2024)
With April and the start of the new financial year just around the corner, optimism is on the rise with respect to temperature, daylight and weather. It is also great to see so many reasons to be cheerful when it comes to the housing market.
Big increase in properties Sold Subject To Conditions (SSTCs)
If you are looking for signs of positivity in the property market, the level of properties SSTC is a good marker. This is why the 23% increase between February 2023 and February 2024 is great news for people looking at the UK property market.
Even if you look back to 2019 figures, the 2024 numbers represent a 9% increase on pre-lockdown statistics.
There has also been a drop in fall-throughs when comparing the year-on-year figures. Fall-throughs were at 27.14% in February 2023, but this year, they stood at 24.6%. There is still scope for improvement, but this is clearly a step in the right direction.
Katy Billany, Executive Director of TwentyEA, said: “While the year-on-year rise of deals being struck is significant, it’s also extremely encouraging to see a large increase compared with 2019 - the last ‘normal’ year within the market before it was affected by the pandemic and Liz Truss’ Budget. Although mortgage rates have reduced, they are still much higher than they were two years ago, therefore our latest stats show buyer demand remains upbeat and sellers are determined despite the rate rises, an impactful cost of living crisis and a possible change of Government. These numbers are indicative of sellers who have become more realistic around pricing as well as a market which is seeming much more positive overall.”
Asking prices hold firm
There are many ways to gauge the mood of the property market but the relationship between asking and sold prices is always worth checking out.
For July to December 2023, the most recent figures available, sold prices in England and Wales achieved 96.7% of the asking price. This is highly respectable, and only a 0.5% fall on the first six months of 2023. When you consider the high levels of uncertainty and increasing mortgage rates as 2023 wore on, this figure is impressive.
In the capital, the sold price was 96.5% of the asking price. This is slightly lower than the rest of the country but notably, London is the only place where the percentage didn’t drop from the first six months to the second half of the year.
Co-founder and CEO of GetAgent.co.uk, Colby Short, said: “In a tough market, managing vendor expectations is key to achieving a successful sale. However, this is often easier said than done, with vendors keen to squeeze every last pound out of their property sale. Therefore, to see the percentage of asking price achieved remaining so high is a testament to the hard work and resilience of estate agents across the country. With demand metrics showing improvements hopefully we will start to see the percentage of asking price achieved increase over the next 12 months.”
Excited by corners? You will be in the property market
You only need to listen to the cheers from the crowd to know that a corner is an exciting prospect in a football stadium. However, a range of studies place the likelihood of scoring from a corner at just 3%, which means a significant number of set-pieces come to nothing.
That isn’t to say corners aren’t worthwhile, but if you’re looking for a better return on your time and effort, a corner in the housing market is of interest.
This is because a corner property could be worth up to £20,000 more than the properties either side of it.
A new study from Open Property Group suggests corner homes have an average asking price of £388,163. Analysis of similar homes which don’t hold this position suggests the average price is £367,867.
This means a corner spot carries a premium of 5.5%, which is just over £20,000. When it comes to the London housing market, the premium is over 10%, which equates to an increase of over £80,000 for a corner property!
However, like goals from a corner in football, corner properties are limited. The same study suggests 5.1% of all properties listed for sale are corner homes, so if you already own one of these properties, be mindful there’s likely to be a high level of demand for your property.
CEO of Open Property Group, Jason Harris-Cohen, commented: “When it comes to selling their property, home sellers will consider all sorts of inventive ways to boost their market value in an attempt to stand out from the crowd and achieve the very best price, where it be a simple lick of paint, or converting the garage or attic into a livable space. Of course, the issue is that most home improvements require time, effort and money and it’s not guaranteed that you will see a profit when you do finally come to sell, particularly at the moment with buyer demand levels having dropped and property prices stalling.”
Jason concluded by saying; “However, those with a corner plot property could be quids in without even knowing it, or without having lifted a finger or paintbrush. It might not be something you have considered before, but if you have a corner plot property you can rest assured that it should not only attract a greater degree of attention, but it should also command a better price than your neighbours.”
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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