Tag: property market update

Posted on

October 2024 Property Market Update

October Property Market Update City Realtor

October brought cooler, rather wet weather and a range of new developments across the UK property market. As mortgage rates adjust, demand for rental properties remains high, and upcoming regulations loom, there’s plenty for buyers, sellers, landlords, and renters to consider. And, with Halloween on the horizon, we’ve included some fun, seasonal tips to make this month’s property update a little more festive

Market Opportunities for Savvy Buyers

For buyers, there are reasons for optimism. While affordability remains a concern, mortgage rates have slightly improved, giving prospective buyers a chance to secure better deals. Nationwide reports that the average UK house price is currently around £262,000, so this could be a good time to step into the market if you’re prepared.

Tips for Buyers:

  • Consider Homes with Potential: With more properties in Tower Hamlets coming to the market, exploring those in need of minor updates can be a smart move. You may find a home at a lower price that you can add your personal touch to.
  • Take Advantage of First-Time Buyer Schemes: Schemes like the Lifetime ISA or Shared Ownership are still widely available and can make a big difference in affordability.
  • Look for Eager Sellers: As the year draws to a close, some sellers may be motivated to secure a deal, so a little bit of negotiation could go a long way.

And for some Halloween fun, take a drive through local neighbourhoods to see which ones embrace the season! It’s a great way to get a feel for the community vibe!

Take a look at our current properties for sale in Tower Hamlets to find your ideal home.

Sellers: Make Your Property Stand Out

With more properties entering the market, sellers need to ensure their homes capture buyers’ attention. According to data from the Land Registry, homes priced up to £350,000 are selling the fastest as buyers prioritise affordability. So, sellers should think creatively about how to make their property appealing.

Tips for Sellers:

  • Emphasise Energy Efficiency: With rising energy costs, energy-efficient features are a strong selling point. Simple upgrades, such as adding draft-proofing or energy-saving bulbs, can boost appeal.
  • Focus on Online Presence: Make sure your estate agent is promoting your property online, including on social media. At City Realtor, we are highly proactive on our socials, ensuring your home gets the best online coverage.
  • Be Transparent About the Property’s History: Buyers appreciate upfront information, so sharing recent upgrades or repair work can help build confidence.

As it’s spooky season, why not add a touch of seasonal charm to your home for viewings. Think autumnal wreaths or a few pumpkins by the door. For guidance on selling your home in Tower Hamlets, contact us on 0207 790 7702.

Landlords: “Spooky Season” Maintenance Check

Autumn is when landlords should be preparing their properties for winter. So, put a Halloween spin on things by doing a “spooky season” maintenance check! Now’s the time to fix any drafty windows, creaky doors, or leaky pipes that might cause trouble in the colder months. Consider sending a Halloween-themed email to tenants, letting them know you’ll be checking the property. This proactive approach shows you care about their comfort and keeps your property in good shape.

Tips for Landlords:

  • Consider Allowing Pets: Demand for pet-friendly rentals is growing, so allowing pets can broaden your tenant pool.
  • Update Your Agreements: Check your tenancy agreements to ensure they reflect the latest legislation, particularly around notice periods and tenant rights.
  • Invest in Energy Efficiency: Simple updates, like installing energy-efficient lighting or insulation, can improve your property’s appeal while meeting future standards.

Landlords in Tower Hamlets can reach out to City Realtor for help with property management. Call us on 0207 790 7702 for more details.

Renters: High Demand Meets New Rights

For renters, there is higher demand for rental properties, with rents up around 5% over the past year, according to ONS figures. As the Renters’ Reform Bill moves forward, it’s a good time to understand your evolving rights as a tenant, especially with protections against eviction becoming stronger.

Tips for Renters:

  • Be Ready to Move Quickly: The rental market is competitive, so have your references and proof of income ready to act fast when a property becomes available.
  • Know Your Rights: Familiarise yourself with the latest tenant protections, particularly regarding eviction and rent increase regulations.
  • Consider Flexibility: Widening your search area or being open to different move-in dates can open up more options in a competitive market.

As Halloween approaches, some neighbourhoods may feature festive décor that gives a sense of the local community spirit. Take a look at our rental properties in Tower Hamlets, or email admin@cityrealtor.co.uk for personalised recommendations.

Property Market Outlook

This month, the UK property market brings a mix of opportunity and challenge. Buyers can find deals, sellers need to go the extra mile to stand out, and landlords are encouraged to stay proactive with property maintenance. Renters should remain aware of their rights while acting quickly in a competitive rental landscape.

Whether you’re buying, selling, renting, or managing property, we’re here to help. Contact City Realtor on 0207 790 7702 or email admin@cityrealtor.co.uk for personalised advice and services in Tower Hamlets.

Enjoy the spooky season, and happy house-hunting!

What Next?

Do you require a valuation or no-obligation advice on buying or selling a home in Tower Hamlets? Please contact our expert property team at City Realtor on 0207 790 7702 or email us at admin@cityrealtor.co.uk, and we will be delighted to help you.

Don’t forget to follow us on our socials for updates and new listings!

Follow us on Facebook, connect with us on X, join us on Instagram, find us on TikTok, see us on LinkedIn, watch our YouTube Videos!

Good luck if you are buying a home, or considering putting your property in Tower Hamlets on the market. We’ve answered your FAQ’s here.

Posted on

September 2024 Property Market Update

Property Market Update September 2024

September has brought a mix of developments in the UK property market, impacting buyers, sellers, landlords, and renters. With mortgage rates beginning to stabilise and significant legislative changes underway, it’s essential for everyone to stay informed.

In September, UK house prices surged by nearly £3,000, as reported by Rightmove. The average asking price for a home increased by 0.8%, reaching £370,759. This rise is notably higher than the long-term average increase for this time of year, which is typically around 0.4%.

Factors contributing to this boost include the recent drop in mortgage rates, an increase in available properties, and faster growth in household earnings relative to inflation and house prices.

Here’s an overview of the key trends shaping the market, along with some practical tips for navigating these changes.

Buying: A Time for Cautious Optimism

For prospective buyers, there is some relief as mortgage rates are falling and the market is slowly adjusting. First-time buyers, in particular, might now find more affordable entry points. However, despite this positive trend, there are still some uncertainties ahead. These include potential changes in the Bank of England’s base rate and upcoming announcements in the October Budget.

Tips for Buyers:

Shop Around for Mortgages:With more competitive mortgage products becoming available, it’s wise to compare offers and speak with a mortgage broker. Fixed-rate deals can provide peace of mind, especially with economic uncertainties still lingering. 

Negotiate Carefully: Sellers may be more open to negotiations, given that the market has cooled slightly. This could be the time to negotiate a better price or ask for certain conditions, like repairs, to be included in the sale.

Check Your Long-Term Affordability: Ensure your monthly mortgage payments will be manageable, even if your circumstances change. While interest rates are decreasing, affordability checks by lenders remain strict, so plan conservatively.

View our current properties for sale in Tower Hamlets on our website.

Selling: Setting Realistic Expectations

The time to sell a property has increased, according to Rightmove, with average homes now taking around 60 days to sell. Buyers are being more deliberate in their choices. This means sellers need to be patient and make sure their properties stand out in a competitive market.

Tips for Sellers:

  • Focus on Presentation: Staging your home well can significantly improve its appeal. Invest in minor repairs, fresh paint, and professional staging if possible. First impressions count, and well-presented homes tend to sell faster.
  • Price to Market Conditions: Avoid overpricing. Properties that are priced too high can languish, leaving you frustrated.
  • Be Flexible with Viewings: Make your property accessible for viewings by accommodating various schedules. The easier it is to view your home, the faster you’re likely to attract serious buyers.

For sellers interested in tracking house prices, several sources provide valuable insights:

  • Halifax publishes a monthly house price index based on its mortgage data.
  • The Office for National Statistics (ONS) uses data from the Land Registry to offer the most accurate measure of house prices, though it has a three-month delay.
  • Nationwide and Zoopla also track house prices. Nationwide reported a 0.2% decrease in August but a 2.4% annual increase, with average prices at £265,375. Zoopla’s data showed a 0.5% rise in July, with average prices now at £266,400.

Each of these sources uses different methods to track prices, so it’s beneficial to consider them all for a comprehensive overview of the market.

For property in Tower Hamlets, City Realtor is best placed to offer information on house prices, tips and advice. Please do call us on 0207 790 7702 or email admin@cityrealtor.co.uk.

Landlords: Preparing for New Regulations

September 2024 is a key period for landlords, with the Renters’ Reform Bill expected to significantly alter the landscape. The abolition of Section 21 no-fault evictions, along with stricter rent regulations, will reshape how landlords manage their properties.

In addition, landlords need to start preparing for the 2030 requirement for all rental properties to meet a minimum Energy Performance Certificate (EPC) rating of “C.”

Tips for Landlords:

  • Stay Informed: Make sure you understand the implications of the Renters’ Reform Bill. Joining a landlord association or investing in property management could help you stay on top of legal updates.
  • Plan for Energy Efficiency: Begin upgrading your rental property to meet the future EPC requirements. Energy-efficient properties will not only comply with regulations but could also be more attractive to eco-conscious tenants.
  • Retain Good Tenants: With increasing tenant rights, focusing on tenant retention is more important now than ever. Offering longer tenancies or incentives like minor upgrades can help maintain a stable rental income.
  • Consider Professional Management: With the legislative environment becoming more complex, it may be worth hiring a professional property management company to handle compliance and day-to-day operations.

For landlords considering property management in Tower Hamlets, call us on 0207 790 7702 or email admin@cityrealtor.co.uk for information on our services.

Renters: Higher Costs, More Rights

While renters face rising rents and high demand for properties, the Renters’ Reform Bill brings new protections. The abolition of Section 21 evictions is a major win for renters, offering more stability. However, this could also lead to landlords being more selective.

Tips for Renters:

  • Know Your Rights: With the introduction of the Renters’ Reform Bill, tenants will have more power. Educate yourself about your rights, including how landlords can and cannot evict you and what standards they must meet.
  • Be Prepared to Act Fast: Competition for rental properties remains fierce. Have your documents and references ready to move quickly when a property becomes available.
  • Consider Flexibility: If you’re struggling to find a rental in a competitive area, consider expanding your search radius or being flexible with your preferred moving date. Being adaptable can open up more options.

View our latest properties for rent in Tower Hamlets on our website.

The Renters’ Reform Bill: Major Changes Ahead

The Renters’ Reform Bill is one of the most significant pieces of legislation affecting the private rental sector in decades. Aimed at giving tenants more protection, the bill is expected to abolish Section 21 no-fault evictions, introduce stricter rent increase controls, and enforce higher standards of accommodation.

Key Provisions:

  • Ban on No-Fault Evictions: Landlords will no longer be able to evict tenants without providing a reason, making it harder for them to reclaim properties. This brings more stability for renters but could lead to landlords being more cautious in selecting tenants.
  • Limits on Rent Increases: Landlords will be allowed to increase rents only once a year, and any increase must reflect market rates.
  • Stricter Housing Standards: Landlords face penalties of up to £7,000 for properties that fail to meet a minimum standard.

For more information on the Renters’ Reform Bill, please speak with a member of our lettings team at City Realtor . We ensure we are always up to date with the latest legislation and developments and can assist landlords and tenants efficiently.

September 2024 sees a mix of cautious optimism and continued challenges in the UK property market. Falling mortgage rates provide some relief for buyers, while sellers need to adjust to longer sale times.

Landlords, in particular, must navigate an evolving regulatory landscape, with the Renters’ Reform Bill set to bring about major changes. Renters, meanwhile, can look forward to stronger protections, but with higher rents and increased competition.

What Next?

City Realtor are your local estate agents in Tower Hamlets. We are delighted to bring you our property market updates each month. If you are thinking of buying, selling or letting a property in Tower Hamlets, please get in touch.

For no-obligation advice on buying, selling, renting or letting a property in Tower Hamlets please contact our expert property team at City Realtor on 0207 790 7702. Alternatively, get an instant valuation here. We look forward to helping you move home.

Don’t forget to follow us on our socials for updates and new listings!

Follow us on Facebook, connect with us on X, join us on Instagram, find us on TikTok, see us on LinkedIn, Watch our YouTube Videos!

Posted on

August 2024 Property Market Update

August 2024 Property Market Update

The UK property market continues to evolve, with significant developments affecting buyers, sellers, landlords, and tenants. August 2024 has brought a fresh wave of changes, driven in part by the recent reduction in the Bank of England’s base rate. This latest property market update looks at the latest trends, and expert insights, offering an overview of what to expect in the coming months.

A Cooling Market Amid Economic Shifts

The UK property market is experiencing a period of moderation after several years of rapid growth. According to recent data from HM Land Registry, the average house price in the UK is currently just under £286,000, reflecting a 1.2% annual increase. While prices remain high, the pace of growth has decelerated slightly, signalling a more balanced market.

The Impact of the Bank of England’s Base Rate Reduction

A key development this month is the Bank of England’s decision to reduce the base rate to 5.00% (Bank of England – Monetary Policy Report). This move, is likely to have a significant impact on the property market. Lower interest rates generally make borrowing cheaper, which could encourage more buyers to enter the market and may provide some relief to those with variable-rate mortgages.

However, the impact of this rate cut may be tempered by the ongoing cost-of-living crisis. Inflation has eased and sits at the Bank’s 2% target, but household budgets are still feeling some pressure. As such, the market may see a cautious response to the rate cut, with buyers weighing the benefits of lower mortgage rates against broader economic uncertainties.

Buying: A Mixed Outlook

For prospective buyers, the market presents a mixed outlook. On one hand, the reduction in the base rate will lower mortgage costs, making property more accessible, especially for first-time buyers. Additionally, the slowing rate of house price growth may create more opportunities to purchase at lower prices.

Follow our step by step guide to buying a house

Buying Tips:

  1. Shop Around for Mortgage Deals: With the base rate reduction, lenders may offer more competitive mortgage deals. It’s advisable to consult a mortgage broker who can help you find the best rates tailored to your financial situation.
  2. Consider Fixed-Rate Mortgages: Given the current economic uncertainties, locking in a fixed-rate mortgage could provide stability in monthly payments, protecting you from potential future interest rate hikes.
  3. Focus on Affordability: Ensure that your mortgage repayments are affordable even if your circumstances change. Lenders are increasingly stringent with affordability checks, so it’s wise to budget conservatively.

View our properties for sale in Tower Hamlets here

However, high living costs and tighter lending criteria continue to pose some challenges. Lenders have become more cautious, particularly in assessing affordability. The Bank of England’s latest data shows that the average mortgage approval rate has dropped by 10% year-on-year, reflecting a more stringent lending environment.

Selling: Adjusting to New Realities

For sellers, August 2024 brings a need for realistic expectations. Zoopla reports that the average time to sell a property has increased to 60 days, up from 45 days a year ago.

Selling Tips:

  1. Price Competitively: In a cooling market, pricing your property correctly is crucial. Overpricing can lead to your property sitting on the market for longer, which may deter potential buyers. Contact us for a realistic valuation.
  2. Enhance Kerb Appeal: First impressions matter. Simple improvements like a fresh coat of paint, tidy landscaping, and minor repairs can significantly increase your home’s attractiveness to buyers.
  3. Stage Your Home: Consider professional home staging to make your property more appealing. Well-staged homes often sell faster and at a better price.
  4. Be Flexible with Viewings: The more accessible your home is for viewings, the more potential buyers you can attract. Being flexible with scheduling can help attract offers faster.

Sellers are advised to price their properties competitively. With more properties available on the market, buyers have greater choice. It’s also important for sellers to be mindful of the condition of their homes; properties in good repair and presented well are more likely to attract serious offers.

Landlords: Navigating New Regulations

Landlords are facing a challenging landscape in August 2024, with new regulations and rising costs. The Renters’ Reform Bill, expected to come into effect later this year under the new Labour government, is one of the most significant changes. This bill aims to abolish Section 21 ‘no-fault’ evictions, strengthen tenants’ rights, and improve the quality of rented accommodation.

Additionally, the Energy Performance Certificate (EPC) requirements are tightening, with all rental properties needing to achieve at least a C rating by 2030. This means that landlords may need to invest in energy-efficient upgrades, which could be costly. On the flip side, the reduction in the base rate may provide some financial relief for those with mortgages on their rental properties.

Read 8 Things Every Landlord Should Know

Landlord Tips:

  1. Stay Ahead of Regulatory Changes: With significant legislative changes on the horizon, landlords should stay informed and ensure compliance. Consider joining a landlord association for updates and support.
  2. Invest in Energy Efficiency: Upgrading your property to meet the new EPC requirements not only ensures compliance but can also make your property more attractive to tenants. Government grants and incentives may be available to help offset some of the costs.
  3. Review Your Financing: With the recent reduction in the base rate, it may be a good time to review your mortgage arrangements. Refinancing could improve your cash flow and profitability.
  4. Focus on Tenant Retention: In a competitive rental market, maintaining good relationships with existing tenants is key. Consider offering incentives such as flexible lease terms or minor property improvements to encourage long-term tenancies.
  5. Consider Professional Management: If managing the increasing complexities of being a landlord becomes overwhelming, consider hiring a professional property management company. They can handle everything from tenant screening to maintenance, ensuring your property remains compliant and profitable.

Lettings: A Strong Demand but Pressured Supply

The lettings market remains robust, driven by strong demand and a limited supply of rental properties. According to data from Rightmove, average rents across the UK have increased by 6.8% over the past year. The shortage of rental properties, coupled with landlords exiting the market due to increasing regulation and costs, has led to intense competition among tenants.

For tenants, this unfortunately means higher rents and more competition, making it sometimes challenging to secure affordable accommodation. For landlords, the high demand presents an opportunity, but it also comes with the responsibility to comply with the new regulations and maintain properties to a high standard.

View our properties to rent in Tower Hamlets

Stay Informed and be Prepared to Adapt

This is a period of transition for the UK property market. The reduction in the Bank of England’s base rate offers potential benefits, particularly for buyers and landlords, but it is set against a backdrop of economic uncertainty and regulatory changes. Whether you’re buying, selling, or renting, staying informed and being prepared to adapt to these changes will be key to navigating this evolving market successfully.

City Realtor are your local estate agents in Tower Hamlets. We are delighted to bring you our property market updates each month. If you are thinking of buying, selling or letting a property in Tower Hamlets, please get in touch.

For no-obligation advice on buying, selling, renting or letting a property in Tower Hamlets please contact our expert property team at City Realtor on 0207 790 7702. Alternatively, get an instant valuation here. We look forward to helping you move home.

Don’t forget to follow us on our socials for updates and new listings!

Follow us on Facebook, connect with us on X, join us on Instagram, find us on TikTok, see us on LinkedIn, Watch our YouTube Videos!

Posted on

July 2024 Property Market Update

Property Market Update July 2024

The UK property market continues to be a topic of conversation, with July 2024 seeing a mixed picture. In our latest property market update, we’ll look at the latest trends for buyers, sellers, landlords, and renters, and of course we are keeping an eye on the potential impact of the recent general election and the incoming government.

Property Market Overview: Steady Growth with Regional Variations

Nationwide house prices saw a modest 0.2% rise during June 2024, bringing annual growth to 1.5%. This is quite a significant shift from the heady days of double-digit growth in 2023. However, it’s important to remember that the market can vary significantly depending on location.

Buying: A More Balanced Market

For potential buyers, July has seen a more balanced market. Rightmove reports a rise in available properties, easing intense competition and making for an altogether calmer buying experience and considered decision-making.

The best mortgage rates are hovering around 4.7% and recent cuts to the base rate offer hope for even more improved mortgage deals in the coming months, with Oxford Economics still predicting a Bank of England base rate cut in August.

Tips for Buyers:

Do your research: Understand your budget and target areas thoroughly. The experienced team at City Realtor can help you with buying a property in Tower Hamlets. Simply call us on 0207 790 7702 for advice.

Be prepared to act quickly: Great properties can still attract multiple offers so it’s important to have a mortgage agreement in principle to help you secure your new home.

Consider working with a mortgage broker: With a complex mortgage landscape, a broker can secure the best possible deal for your circumstances, ensuring you get the most out of your budget. City Realtor is happy to recommend a mortgage adviser. Please just ask.

Selling: Strategic Timing Can Be Key

Sellers may need to adopt a more strategic approach in July’s market. There are still plenty of buyers around, however, the number of properties for sale dropped off slightly following the election announcement in May. With a new government now in place, it will be interesting to see whether this picks up again. July and August can be quiet months for sales, but a well-presented property with a competitive asking price, will likely attract interest.

Tips for Sellers:

Price realistically: Get an accurate valuation of your property to attract serious buyers. Remember that the highest valuation is not always the way to go! Always consider an estate agent who you feel you can trust to market your property in the best way and achieve the price your property is worth. For a free valuation, call City Realtor on 0207 790 7702 or email us at admin@cityrealtor.co.uk.

Presentation is key: Invest in decluttering, staging, and kerb appeal to make your property stand out. First impressions matter, and potential buyers often make snap judgments during viewings.

Landlords and Lettings: Adapting to Changing Regulations

Landlords are still navigating a period of significant change. In The Kings Speech on Wednesday 17th July, The King announced that the Government would introduce legislation to “give greater rights and protections” to those renting – including “ending no-fault evictions”, with draft legislation published on leasehold and commonhold reform.

In a further statement from Downing Street, the Government said: “The Renters’ Rights Bill delivers our manifesto commitment to transform the experience of private renting, including by ending Section 21 ‘no fault’ evictions…The Bill will give renters much greater security and stability so they can stay in their homes for longer, build lives in their communities, and avoid the risk of homelessness.”

Tips for Landlords:

Stay informed: It’s crucial landlords keep up-to-date with changes in regulations and legislation by following resources like the National Landlords Association (NLA). If in any doubt speak with a member of our lettings and property management team at City Realtor on 0207 790 7702.

Consider tenant retention rather than rent increases: A reliable tenant who takes good care of your property can be more valuable than a small increase in rent. Building a positive relationship with your tenants can lead to long-term stability and fewer void periods.

Maintain your property: Regular upkeep ensures your investment remains attractive to tenants and minimizes the risk of costly repairs later.

The General Election and the Property Market

The recent general election has added another layer to the property market. The incoming government’s policies on housing, taxation, and infrastructure spending will undoubtedly impact the sector in the long run. However, the immediate effect is likely to be muted and the established nature of the UK property market suggests it will continue to function even during a period of political change.

Looking Forward: A Market in Transition

The UK property market is in transition. Modest growth, regional variations, and the influence of the new government are key factors to consider. However, while there may be adjustments ahead, the fundamental strength of the UK property market is likely to endure.

For buyers, sellers, landlords, and tenants this period offers an opportunity to be informed, strategic, and adaptable. By understanding the current trends, staying informed about future developments, and seeking professional advice when needed, you can navigate the UK property market with confidence.

City Realtor are your local estate agents in Tower Hamlets. We are delighted to bring you our property market updates each month. If you are thinking of buying, selling or letting a property in Tower Hamlets, please get in touch.

City Realtor are your local estate agents in Tower Hamlets. We are delighted to bring you our property market updates each month.

For no-obligation advice on buying, selling, renting or letting a property in Tower Hamlets please contact our expert property team at City Realtor on 0207 790 7702. Alternatively, get an instant valuation here. We look forward to helping you move home.

Don’t forget to follow us on our socials for updates and new listings!

Follow us on Facebook, connect with us on X, join us on Instagram, find us on TikTok, see us on LinkedIn, Watch our YouTube Videos!

Posted on

June 2024 Property Market Update

June-2024-Property-Market-Update

During June we’ve seen the UK property market continuing on its path of cautious optimism. While the fast growth seen in previous years has eased, a sense of stability is emerging, underpinned by rising buyer demand and a potential shift in interest rates.

Let’s delve into the key trends shaping the market this month.

Market Recovery Gathers Momentum

The good news for buyers and sellers is that the property market is experiencing a steady recovery. After a period of uncertainty, house prices are showing signs of growth again. According to Nationwide Building Society, May 2024 saw a 0.4% increase in average house prices, bringing the annual growth rate to 1.3%. This indicates a market that’s found its footing and is on an upward trajectory.

Regional Variations Remain

While the national picture is one of growth, it’s important to remember that the UK property market is a patchwork of regional variations. Scotland continues to lead the pack with a significant 6.7% annual increase in house prices, while England and Wales are seeing more modest rises of 1% and 1.3% respectively. Northern Ireland has also shown steady growth of around 4%. Understanding these regional differences is crucial for both buyers and sellers when making informed decisions. If you would like to know more about the Tower Hamlets region, please call us on 0207 790 7702 to discuss.

The Interest Rate Question

A significant factor influencing the market is the ongoing speculation around interest rates. With inflation falling closer to the Bank of England’s 2% target, a potential base rate cut is on the horizon. However, in June, The Bank of England made the decision to keep interest rates the same – at 5.25%, meaning the rate has now remained static for the past 10 months. An interest rate drop could be a game-changer for the market, making mortgages more affordable and potentially boosting buyer demand. Some economists predict the first cut could come as early as August 2024, while others think we may have to wait until December! The impact of this on house prices remains to be seen, but it’s likely to contribute to a more vibrant market.

Election Jitters or Business as Usual?

The upcoming general election in July has caused some to wonder if it will stall market activity. However, experts suggest this is unlikely to happen. In contrast to past elections with significant policy shifts, the current political landscape doesn’t propose drastic changes impacting the housing market. The first interest rate cut, however, is expected to have a more significant impact on market activity this year.

Supply and Demand: Finding Balance

The good news for buyers is that there are signs of a healthy increase in the number of properties coming onto the market. This increased supply is expected to keep house price inflation in check throughout the year. While significant price hikes might be off the table for now, the steady flow of properties ensures buyers have more options in a balanced market.

What Does This Mean for You?

Landlords: The rental market continues to see high demand, with rents rising at a slower pace than the previous year. Zoopla reports an average increase of 6.6% for new lets in April 2024. While this presents an opportunity for stable returns, it’s important to remember tenant retention is key. Focusing on good communication, responsive maintenance, and ensuring your property remains competitive in terms of rent and amenities will be crucial for attracting and keeping quality tenants.

Buyers: With a potential interest rate cut on the horizon, affordability might improve in the coming months. However, with increased competition due to rising demand, it’s still a seller’s market in many areas. Being prepared with a well-researched offer and a strong financial position will be key to securing your dream property in Tower Hamlets.

Sellers: While significant price rises are less likely, the market conditions remain favourable for sellers. At City Realtor we suggest focusing on presenting your property in its best light through minor improvements, home-staging and competitive pricing to attract buyers quickly in a market with more options.

The Bottom Line

The UK property market is moving towards cautious optimism. House prices are showing signs of growth, with regional variations offering opportunities for both buyers and sellers. The potential for a base rate cut later this year could be a major driver of market activity. With an increased number of properties coming to the market, a sense of balance is emerging. Whether you’re a buyer, seller, or landlord, staying informed and seeking expert advice will be crucial for navigating the market effectively.

City Realtor are your local estate agents in Tower Hamlets. We are delighted to bring you our property market updates each month.

For no-obligation advice on buying or selling a property in Tower Hamlets please contact our expert property team at City Realtor on 0207 790 7702. Alternatively, get an instant valuation here. We look forward to helping you move home.

Don’t forget to follow us on our socials for updates and new listings!

Follow us on Facebook, connect with us on X, join us on Instagram, find us on TikTok, see us on LinkedIn, Watch our YouTube Videos!

Posted on

May 2024 Property Market Update

Property Market News May 2024

With headlines in the news about stagnating house prices and rising mortgage rates, May has been a challenging month, with the cost-of-living crisis still biting homeowners. However, it’s not all doom and gloom! Owning a home is still beneficial, offering long-term living and financial stability.

General Election News

Prime Minister Rishi Sunak has announced that we’re heading to the polls on Thursday, July 4th, 2024. This forthcoming general election could bring some stability to the property market, which is great news for buyers and sellers who’ve been dealing with a shaky few months. With inflation nearing the Bank of England’s target and a potential interest rate drop on the horizon, things are looking up. Expect a busy second half of the year for property deals!

How Can First Time Buyers Get on the Property Ladder?

The end of April saw the release of the BSA (Building Societies Association) report which confirmed that first-time buyers currently face the most challenging conditions in seven decades to get onto the property ladder, with an increasing reliance on the Bank of Mum and Dad, or having two high incomes.

The report highlights that home ownership among young adults has been declining for twenty years but, while saving enough money to put down a deposit has long been difficult, the squeeze has been tightened in recent months because of mortgage interest rate increases.

It’s not hard to see why more young people are opting to move back in with their parents, with this now being the most commonly reported living arrangement for those aged 18-34. This is in stark contrast to the figures for 1997 which showed that those in the same age bracket were most likely to be living as a couple with children!

Many first-time buyers are undeterred though, with recent Bank of England figures showing that over the past three years, over a million mortgages extending beyond the state pension age of the borrower have been taken out. Many of those loans have been approved for applicants under the age of 30 as high mortgage rates lead people to opt for extended repayment periods to keep their costs affordable.

Twice the number of homeowners under 30s with ultra-long mortgages can be seen today when compared with two years ago, while the number of under 40s has also seen a 30% increase. It’s also clear that first-time buyers are adapting to higher borrowing costs by targeting smaller, more affordable properties. This adjustment is helping to maintain activity levels in the market with a steady flow of new buyers entering the market.?

Base Rate Held at 5.25% – Good News or Bad News?

The Bank of England most recently held the base rate at 5.25%, despite predictions that there would be a cut.

Meanwhile, three of the UK’s top lenders announced they would be raising their rates on fixed deal mortgages. NatWest, Santander, and Nationwide are the latest three to follow their rivals who increased mortgage rates after expectations about the speed and extent of Bank of England interest rate cuts were scaled back. That’s the bad news!

However, a rate cut is expected, followed by further cuts later in the year. That’s the good news!

A Month of Ups and Downs!

May 2024 was a month of ups and downs in the UK lettings market! The rental market remains robust, with high demand pushing average rents to record levels which is positive for landlords and investors. However, some tenants are still struggling with the impact of the cost-of-living crisis and its knock-on effect on the number of homes available to rent.

Some good news for landlords has been released in Propertymark’s latest insights report , which shows signs of the rental market beginning to stabilise after a rocky period towards the end of 2023 which saw the percentage of arrears peak at 4%.

This month’s report reveals that since the start of the year, the number of tenants in arrears has been falling, and has now reached a low point of 2.5%, indicating that landlords can start to breathe a sigh of relief and look forward to less frustration over rent collection.

Has There Been An Increase In Landlord Confidence?

In a recent report from PayProp, their latest Rental Confidence Index r evealed that an astonishing 54.5% of the landlords involved in their survey were going through the process of selling their properties!

It’s not surprising, then, that half of all tenants who have moved during the last year have done so because their landlord took the decision to sell up. By contrast, the percentage of tenants who left their homes due to eviction stood at under 12%.

However, the announcement of amendments to the Renter’s Reform Bill has led to positivity amongst UK landlords. In a further poll commissioned by PayProp, the number of respondents who reported a negative view of the private rental sector fell compared with those asked the same question in 2022. Over half of landlords are now feeling more positive about the sector’s future.

In a smart move by first time buyers, 66.7% of properties being sold by landlords are being snapped up by first timers. But this does mean that the number of private rentals is dwindling – an issue that is now seeing prospective tenants fiercely competing to offer on properties.

Did You Know?

This year we are already seeing increased demand for sustainable homes. Energy-efficient features and eco-friendly designs are becoming more sought-after, alongside smart security, energy management tools and automated heating systems.

What Next?

We are delighted to bring you our property market updates each month. If you are thinking of buying, selling or letting a property in Tower Hamlets, please get in touch with us at City Realtor on 0207 790 7702 or email admin@cityrealtor.co.uk

Don’t forget to follow us on our socials for updates and new listings!

Follow us on Facebook, connect with us on X, join us on Instagram, find us on TikTok, see us on LinkedIn, Watch our YouTube Videos!

Posted on

April 2024 Property Market Update

April 2024 Property Market Update

With the first quarter of the year now behind us, April 2024 has brought a positive forecast as some of the uncertainty of the past 12 months is starting to ebb away. Thanks to the latest developments in the economy, the property market is looking brighter for the next few months as we move forward towards summer.

Inflation Set to Impact Mortgage Rates

According to the Office for National Statistics, March saw the Consumer Price Index fall to 3.2%, taking the UK’s economy ever-closer to the target of 2% set by the government. This looks like good news for the property market, thanks to the influence it will have on mortgage rates.

The most up-to-date data from the Bank of England shows that the flurry of initial activity seen at the beginning of the year has now begun to calm. February saw a significant increase in the number of mortgage approvals as mortgage rate cuts prompted market activity. However in March, the number of agreed sales dropped to 2% above 2017-2019’s average, down from February’s 13% above.

Since mortgage rates now are almost back to the same level as seen in late December, it looks unlikely that the pace of activity seen so far this year will be maintained into the summer months.

Potential Action on Leasehold Maintenance Contracts

Homeowners locked in private new-build communal area maintenance contracts have a glimmer of hope on the horizon as over 40 Conservative MPs call for a ban. As the Leasehold Bill slowly works through Parliament, the Housing Secretary is now under pressure to include a “Fleecehold” ban to help the millions of people living under this model and facing steep estate fees.

The CMA (Competition and Markets Authority) has also recently recommended bringing an end to this model too, putting forward a proposal that local councils be required to adopt new housing estate public amenities once complete. According to the housing minister, the government is now paying careful consideration to this report, which also suggests introducing a property agent regulatory body to address leasehold issues and raise standards across the industry.

With news of homeowners facing shocking increases as high as 274% in their annual service charge bills for 2024, the prospect of the some positive change in the status quo can only be cause for cautious celebration.

Watering Down of Renter Reform

The news isn’t so good for renters, though, as the government set out changes to the planned protections in England for renters following concerns from a number of Conservative MPs that the original proposal would be too much of a burden for landlords.

The latest alterations include requiring tenants to commit to at least a 6-month contract rather than being able to end their tenancy with 2-months’ notice from day one and, most controversially, delaying the no-fault eviction ban on existing tenancies pending the outcome of the justice secretary’s assessment of the court system’s ability to handle repossession claims.

One positive proposed change, however, is the introduction of a right to local council homelessness support for tenants who find themselves evicted under the new grounds for possession.

While this watering down of the Renters (Reform) Bill is sure to be received negatively by those tenants who are aware of its existence, recent research published by the TDS Charitable Foundation shows that a surprising 83% of people who are currently living in a rental property lack any awareness of the Bill’s proposals. Of those who know about the proposed reforms, most are pessimistic about their ability to result in tangible changes. 42% believe the Bill will change little about the rental sector, while 37% believe it is unlikely to be implemented at all.

Good News for Landlords as Tenants Stay Longer

While tenants may be less than thrilled with the latest developments in the property market, things are looking up for landlords as The DPS (The Deposit Protection Service) released its research that revealed tenants are staying in their properties for a third longer than in 2020.

Today’s typical tenancy is now lasting for 924 days, a significant increase over the 706 days seen four years ago. It appears that a combination of the cost-of-living crisis, high rents, and a competitive market for new rental properties are leading to renters remaining for longer periods in their homes.

In further positive news for landlords, Octane Capital reports that the typical buy-to-let property yield has now increased to 5.8%, up from 4.9% over the last two years, and while running costs have gone up over the same period, landlords are still enjoying attractive net profits overall. This report, paired with the proposed delay in the no-fault eviction ban, is likely to encourage existing landlords to remain in the market for the foreseeable future.

As we move further into the second quarter of the year, time will tell how the property market will develop. Traditionally, spring sees more homes being listed for sale, so we will wait with anticipation to see what May has in store!

What Next?

We are delighted to bring you our property market updates each month. If you are thinking of buying or selling a property in Tower Hamlets, please get in touch with us at City Realtor on 0207 790 7702 or email admin@cityrealtor.co.uk

Don’t forget to follow us on our socials for updates and new listings!

Follow us on Facebook, connect with us on X, join us on Instagram, find us on TikTok, see us on LinkedIn, Watch our YouTube Videos!