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Spring has arrived, and with it comes one of the busiest seasons in the UK property market. According to the latest data, sales market competition has reached a 10-year high, and March is shaping up to be one of the strongest months for sellers to make their move.

Key Market Trends You Should Know:

• Increased Supply: Over half (52%) of agents report more properties on the market compared to just three months ago.
• More Buyer Choice: Spring buyers now have access to the widest selection of homes since 2015.
• Competitive Pricing Matters: With affordability stretched in some areas, correctly pricing your home will be crucial to achieving a sale.

If you are ready to take the first step we offer expert market advice and personalised property valuations to ensure your home stands out in this competitive market. Let us guide you through every step of your selling journey and help you achieve the best possible result.

Sources: Bank of England, Rightmove, Dataloft by PriceHubble, ONS, UK HPI, Zoopla, Halifax

Local Market Roundup

The latest land registry data for the year end, November 2024 reported 3414 property transactions across the WR postcode area reflecting a 18% decline compared to the previous year with an average sales price of £292,711. Worcester recorded 1542 transactions, down 16% while Malvern saw 477 transactions down 20% . In Droitwich
transactions fell by 23% to 378.

Over the same period the average sale price increased by 2% to £292,711. Houses represented 89% of total sales averaging £317,862 while flats making up the 11%  averaged a sale price of £150,497.  Malvern’s average price rose by 2% to £305,767, Droitwich saw a 2% increase to £287,252 and Worcester’s average increased
slightly by 1% to £261,955. The increase in average sales price over the last five years is shown below:

Over the past year, the average rent for properties in Worcestershire increased to £904 per month, reflecting a 6% rise compared to the previous 12 months. Flats, which accounted for 42% of the rental market, averaged £744 per month, while houses, making up 59%, achieved an average of £1,056 per month. In Droitwich rents have climbed by 10% to £868 per month with flats averaging £654 and housing averaging £1107. Malvern experienced an 18% increase reaching £966 per month, with flats at averaging £842 per month and houses £1056. Worcester’s average rent rose by 3% increase to £889, with flats achieving an average rental value of £767 and houses £997 per month.

Source: Dataloft Market Rental Analysis (rental data is limited and based on achieved rents for approximately 10-15% market share, depending on location)

National Market

For the year ending November 30th 2024 the average house price rose to £268,087, marking a 4.6% increase compared to the previous year (ONS). Meanwhile the average price of property coming to the market for sale rose by 1.1% to £371,870, in line with the long-term March average increase with UK house prices projected to rise by 2/5% in 2025.

 

Economy

The Bank of England have held interest rates at 4.5% in its second meeting of the year, amid persistent inflation. Monthly GDP is estimated to have fallen by 0.1% in January 2025, after growth of 0.4% in December (ONS). CPI inflation rose by 3.0% in the 12 months to January 2025, up from 2.5% in December (ONS).

Lettings Market

Average void periods shortened from 24 days in January to 20 days in February. Rents are forecast to increase by 3-4% over 2025 as slower growth in large cities is offset by faster growth in more affordable markets (Zoopla). The average rent in February was £1,275, up 1.0% year on year.

The lettings market remains strong, with high tenant demand continuing through the winter months, averaging 25 inquiries per property. This robust demand is giving our landlords confidence in finding tenants quickly. As you are aware there are upcoming legislative changes, including the Renters’ Reform Bill, which will phase out Section 21 notices and introduce month-to-month assured periodic tenancies. Whilst some landlords may be apprehensive, the key is to stay informed and adapt to the new processes. Encouraging news is that the market is demonstrating positive long-term investment prospects despite recent tax and interest rate changes with property values and rental yields rising. For landlords thinking long-term, the potential for solid returns remains undeniable.

If you’re a landlord with questions, our experienced lettings manager, James, is here to offer valuable insights and support. James has also recently released his book, Home, a comprehensive guide for current landlords and those looking to invest in property. You can purchase a copy, available in both paperback and Kindle, by clicking here.  

Whether you are a current landlord investing in property or are looking to venture into the world of lettings, this free event is for you. Property, legal and financial experts
will be putting the lettings sector under the spotlight at the Nicol & Co Landlord Event from 6 to 8pm on Thursday 1st May at Sixways.

Secure your seat via our Eventbrite link here.

Market Insight

This market update draws from a range of trusted sources to provide you with clear, evidence-based insights to guide your property decisions. Our team is committed to staying updated on latest market trends and legislative changes, ensuring you have the most current and relevant information.

If you’re thinking of making a move, this update offers valuable insights to help guide your decision-making. Our expert mortgage advisors are on hand to provide personalised advice, helping you determine whether moving or remortgaging is the best option for you. We’re here to ensure you make informed choices for a seamless transition in the year ahead. For more information, click here. 

Feel free to reach out to us anytime. We’re here to assist you in making informed property decisions and navigating your property journey.

For additional insights, follow us on social media, where we share regular updates, including our weekly Mortgage Watch, available on the Nicol & Co Instagram page @nicolandco_estateagents or through @Matt_the_Agent.