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In March 2024, there was a notable increase of 20% in available homes compared to the same time last year, providing buyers with a wider selection. This surge in supply, combined with the usual spring bounce and a solid 9% rise in property sales, has injected vitality into the market.

The Bank of England data further underscores this positive trend, revealing that February marked the highest number of mortgage approvals since September 2022, totalling 60,383, 7% above the previous month. Concurrently, the latest RICS Residential Market Survey reports ongoing optimism in buyer demand, with new buyer enquiries maintaining a positive net balance (+8%) for the third consecutive month, showing a continued upward trajectory. These indicators collectively reinforce the positivity in the housing market.

Towards the end of April, we saw a minor rise in mortgage rates, largely attributed to inflationary pressures in the United States. While this development has influenced swap rates, subsequently impacting the rates offered by lenders to consumers, experts foresee a swift return to stability within the coming weeks with the overall outlook remaining optimistic.

This temporary fluctuation should not deter buyers from taking action in this positive market. We highly recommend seizing the opportunity to secure favourable rates early on, with the flexibility to switch if better rates emerge during the process. We have a range of mortgage brokers available who can guide you through these steps, and we would be more than happy to connect you with them for further assistance.

Local Market Roundup

Based on the latest Land Registry statistics for year ending 31^st January 2024, the total number of transactions totalled 3,012 showing 37% fewer sales compared to the previous year. Worcester the transactions totalled 1294, down 39%, Malvern saw 486 transactions, down by 34% and Droitwich witnessed 360 transactions, down by 35%.

Over the last 12 months, the WR Postcode area saw an average sales price of £286,642, inclusive of both houses and flats. Of these sales, 84% were houses, with an average price of £318,468, while flats at 14% of the transactions achieved an average price of £152,881.

Looking across the county, Malvern leads with an overall average transaction value of £308,317, despite a minor 2% dip. No change in Droitwich which maintained an average of £281,163. Although Worcester saw a slight 1% decrease, it still maintains a respectable average of £254,081.

The increase in average sales price over the last five years is shown below:

Source: Dataloft Land Registry

Over the past year, the WR postcode area saw an average rent of £845 per month for homes let, marking a +7% increase from the previous year. Among these properties, 42% were flats, with an average rental value of £710 per month, while houses fetched an average of £997 per month. In Droitwich, the average rent for let properties was £753 per month, with flats averaging £618 and houses £999. Malvern saw an average rent of £885 for homes let, with flats fetching £818 per month and houses £961 per month. Meanwhile, Worcester’s average rent stood just below the area average at £825 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

The average price for a property in February stood at £280,660, marking a marginal decrease of -0.2% year-on-year, yet showing a modest increase of 0.4% compared to the previous month, as reported by the ONS.

In April, the average asking price of property entering the market saw a notable uptick of 1.1% to reach £372,324. This upward trajectory has pushed the annual rate of price growth to +1.7%, marking the highest level seen in the past 12 months. (Rightmove).

Despite a slight dip in sales volume from last year, 82,940 transactions were recorded in February, representing the highest level since September 2023. (HMRC)

Furthermore, the number of sales being agreed has surged by 13% compared to last year, with the largest homes/top-of-the-ladder sector experiencing an impressive 20% increase. (Rightmove)

Economy

The Bank of England has held steady, keeping UK interest rates at 5.25%, with the next decision scheduled for May, setting the stage for potential market shifts.

The Office for National Statistics (ONS) reports a modest yet notable growth trajectory: February 2024 saw a slight uptick of 0.1% in monthly GDP, building on the 0.3% expansion witnessed in January.

Amidst these developments, inflation, as gauged by the Consumer Price Index (CPI), continues to be closely monitored. The ONS data indicates a rise of 3.2% in the 12 months leading up to March 2024, marking a marginal decline from the 3.4% recorded in February.

Lettings Market

Annual growth in rental prices in the UK rose to 9.2% in March, showing a slight increase from the 9.0% recorded in February, (ONS, Price Index of Private Rents).

Following a 0.9% increase in February, this pushes the average UK rent to £1,273  average UK rent experienced a 0.9% increase in March, reaching £1,273, which is 7.5% higher than the same period last year. data from HomeLet reveals that

However, amidst these figures, there’s a notable shift in rental demand, with a year-on-year decrease of -20% as one-off pandemic factors ease and the labour market cools.

Market Insights

Whilst the market has seen a positive shift in the start of 2024, we understand that with the ever changing housing market, the continual economic pressures and the undoubtable changes in the political scope, the media will have plenty to talk about. This year is going to be ‘noisy’.

In providing you with this market update, we hope you can make clear, evidence based decisions to help support you in your property journey. Our team are always on hand to discuss the current property market, providing accurate information to empower your decisions.

I’m always eager to share insights as we navigate the ever-evolving market. If you have any questions for me directly, feel free to reach out through our website or by following us on our social media channels, which also contain useful market updates and information.