Droitwich, Worcester & Malvern Market Update – December 2023
One of the findings revealed in the recently released Property Academy Home Moving Trends Survey was that people move more often than they expect to.
While just 23% of homeowners expect to move within the next six years, the reality is that one third are likely to. This rises to 43% of first-time buyers anticipating they will stay six years or less, with just 37% staying this long in reality.
31% anticipated their next property would be their ‘forever home’, while only 28% actually ended up staying over 20 years.
These figures suggest it is always a good idea to keep up to date with the value of your property and to keep in touch with the agent you are likely to sell with because, if the last few years have taught us anything, it is to expect the unexpected. That perfect property that would cause you to change your plans might just come on the market and you may have to move fast.
The teams in each of our offices at Nicol & Co are renowned for keeping in touch and have access to the best property technology meaning they will be able to help you move quickly if you need to.
Why not invite one of our Valuation Managers out to see you before the end of the year?
LOCAL MARKET ROUNDUP
The latest available Land Registry statistics, for the year ended 31st August 2023, reveal that there were 30% fewer sales across WR postcode area than the previous 12 months. The actual number of transactions was 3396. Sales in Droitwich were down 28% at 403, 29% in Worcester at 1507 and 31% in Malvern at 514.
Over the last 12 months, 14% of the sales across the wider area have been flats at an average price of £152,495. Houses have averaged £320,661 resulting in an overall average of £288,219. Averages vary across the county, but all have shown growth. Malvern’s overall average transaction value remains highest at £313,737 up 3%, with Droitwich next at £290,081 also up 3%. In Worcester, where 44.4% of the sales were recorded, the overall average price increased by 4% to £256,446
The increase in average sales price over the last five years is shown below:
Across the WR postcode area, the average rent for homes let over the last 12 months increased by 8% to £851. 37% of the properties let were flats, achieving an average of £703, while houses achieved £980 per month. The average rent for properties let in Droitwich is £741, 13% lower with flats here averaging £588 and houses £955. In Malvern, the average rent on homes let in the last 12 months was £877. 41% of properties were flats, achieving an average of £752 per month, while houses achieved £978 per month. Worcester’s figure remained 3% below the average at £826.
The average asking price of a newly marketed property decreased by 1.7% this month to £362,143 on the run up to Christmas and as sellers continue to adopt realistic pricing (Rightmove).
Mortgage approvals in September dropped to 43,300, 5% lower than the previous month. This is below the long-term average but a 9% improvement on the start of the year.
HMRC reports that 85,610 sales took place in September, 0.6% down on the previous month and significantly down on last year’s levels (-17.0%).
Halifax recorded an uptick of 1.1% in house prices in October, an increase for the first time in 6 months. Nationwide also reported a rise of 0.9% last month.
The Bank of England have once again held base rates at 5.25%, which will stay for at least another six weeks.
The OBR has downgraded their forecasts for economic growth from 1.8% to 0.7% in 2024.
Inflation fell sharply to 4.6% in the year to October, its lowest rate since November 2021. The fall is mostly attributed to lower energy prices (ONS).
Announced in the Autumn Statement, cuts to employee National Insurance from 12% to 10% will save the average earner £450 per year. Reductions to National Insurance for the self-employed have also been announced, affecting an estimated 39% of landlords with five or more properties.
At 6.1% in October, annual growth in rental prices in the UK is at its strongest since records began. The Index of Private Rented Housing Prices reports on both new lets and renewals.
The average rent on newly agreed rental contracts rose to £1,283 in October, a 9.6% annual increase. This is the first time the annual growth rate has dipped below 10% since April (Homelet).
NICOL & CO IS THE BEST SALES AGENCY IN THE COUNTRY
Nicol & Co has been identified as one of the top estate agents in the country and now features in the Best Estate Agent Guide – an independent reference source for sellers and landlords to help them find the best sales and lettings agencies in their area.
13,080 estate agents were assessed to find the best and Nicol & Co were not only judged to be the best sales and letting agent with 2 – 5 offices but were also crowned the best Sales Agency nationwide.
In response to the regular feedback we receive regarding the value of our Market Updates we have decided to publish more regular market insights online. We are emerging from an unprecedented period of activity at the same time as having to cope with equally unusual economic pressures; added to which there is a measure of political uncertainty fuelled by the mainstream media.
In the midst of this turbulence we believe it is important for you to hear clear, evidence based messages to help you navigate in the current market and make the right choices.
With nearly two decades of experience our MD, Matt Nicol is keen to ensure you have access to expert advice and invites you to ask him directly via our website or by following us on our social media channels.