Market Comment (September 2024)
It is fair to say a lot of people are excited about the current changing of the season. Yes, some are sad to say goodbye to the summer but for individuals who thrive on pumpkin spiced drinks, spooky goings on and counting down to the festive period, this is the most exciting time of the year!
At Trading Places, we’re excited by the housing market, and many interesting stories have arisen this past month. If you want to stay up to date with what is happening in the local housing market, we’re here to ensure you never miss a moment.
UK Housing Market Update: Mixed Signals and Regional Variations
The UK housing market is sending mixed signals, with the latest Land Registry data revealing a slowdown in annual price growth. While the average UK house price reached £290,000 in July 2024, up £6,000 from the previous year, the annual inflation rate dipped to 2.2% from 2.7% in June. This deceleration is further evidenced by a 0.4% month-on-month decrease on a seasonally adjusted basis, suggesting a cooling market. However, the picture isn't uniform across the UK, with Scotland and Northern Ireland showing robust growth at 6.0% and 6.4% respectively, while England and Wales saw more modest increases
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For homeowners and potential buyers, these figures highlight the importance of considering regional variations. The North East of England emerged as the top performer with 3.8% annual growth, contrasting sharply with London's 0.4% decline. This divergence underscores the need for a nuanced approach to property decisions.
We all know the London property market is unique, and shouldn’t be considered alongside other areas of the UK. As local agents, we know the unique challenges buyers and sellers in London face, and we are here to assist you with tailored support and services.
Nathan Emerson is the CEO at Propertymark, and he has spoken on this matter, saying: “It is reassuring to see further progress within the housing market as we continue to witness a consistent trend of growth as the year plays out. Overall, 2024 has proven to be transformative for the housing market with it facing a myriad of challenges at the start of the year and gathering pace to a far more upbeat performance as demonstrated by these latest figures.”
How long does it take to buy a home?
While most first-time buyers expect some delays when buying a home, a new study by Aldermore suggests many of these buyers’ under-estimate many parts of the home buying process.
The study found homebuyers over-estimate the length of time it takes to view property, with the estimate of 20 weeks being longer than the average time, which is 18 weeks. However, in many other important features, people expect the process to conclude before it is likely to.
First-time buyers suggested liaising with mortgage brokers takes 10 weeks while the average is 16 weeks. Buyers felt negotiating with solicitors and conveyancers would take 11 weeks, but the average is 14 weeks. Buyers also felt 11 weeks would be sufficient to arrange insurance and sort our renovation work while the average time is 15 weeks.
The key takeaway is to allow for more time than you think, and to work with an experienced estate agent. We take great pride in helping clients achieve their property aims in a realistic and timely manner.
House Selling Costs Soar: What UK Homeowners Need to Know
UK homeowners looking to sell their properties face a significant financial hurdle, with costs potentially reaching up to £18,500. This eye-opening figure, revealed by property-buying specialist Gaffsy, encompasses a range of often-overlooked expenses. From estate agent fees, which can vary between 1% and 3.5% of the property price, to solicitor costs averaging £2,003, and potential mortgage exit fees, the financial implications of selling a home are substantial. Add to this the costs of surveys (£400-£1,500) and mandatory Energy Performance Certificates (£60-£120), and it's clear that proper budgeting is crucial for anyone entering the property market.
Oren Kander is the senior valuer and director at Gaffsy, and he spoke about this topic saying: “Selling a home can be incredibly expensive and knowing how much to save and account for is useful for property sellers. There are many hidden costs with property selling and knowing about them can help alleviate the stress associated with selling your home. We’ve estimated that sellers need to pay a huge £18,500 to sell their property, but know some of these costs can be negotiated down to reduce fees and companies will expect you to do so.”
Family Financial Support Reshapes UK Housing Market
The UK housing market is witnessing a significant shift, with the 'Bank of Family' becoming a crucial player in property purchases. According to groundbreaking research by Legal and General and the Centre for Economics and Business Research, family contributions are set to underpin a staggering 42% of property transactions for under-55 buyers in 2024.
This trend is expected to escalate, with family gifting projected to reach £11.3 billion by 2026. For homeowners, this highlights the growing importance of considering their property not just as a personal asset, but as a potential resource for supporting younger generations in an increasingly challenging market.
However, this surge in family support comes with its own set of challenges and considerations. The research reveals that 19% of those providing financial assistance are tapping into their own property wealth through downsizing, equity release, or remortgaging. Alarmingly, 74% of these generous family members are making these significant financial decisions without seeking professional advice. This underscores a critical need for homeowners to approach such decisions with caution and seek expert guidance.
We make sure you make an informed move
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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