Comment

The appetite for new builds is growing – and fast – We’re seeing a clear and growing appetite for new build homes among UK buyers. Recent data shows that 53% of home movers would now consider purchasing a brand-new property – up from 47% just last year. Even more telling, 21% say they actively prefer new builds, compared to 17% the year before.
With the government setting an ambitious target of 1.5 million new homes over the next five years, and 64% of developers expecting a surge in construction activity within the next 12 months, it’s evident that new build momentum is not only real – it’s accelerating.

For buyers, this means more choice, greater energy efficiency, and the opportunity to secure a home tailored to modern living. For sellers and investors, it signals a market segment well worth watching.

Spotlight on Local Developments: New Homes We’re Proud to Represent – As demand grows, we’re proud to be appointed selling agents for a number of outstanding new build developments across Worcestershire:
Martley Fields & The Green at Rushwick (Lioncourt Homes)

These thoughtfully designed homes are perfect for families looking to enjoy countryside living with all the benefits of a modern build. With sustainability, community, and space in mind, these developments offer the best of both worlds.

Cooksholme Farm, Littleworth – A boutique collection of homes in a peaceful, semi-rural setting. Ideal for those seeking a quieter pace of life while remaining within easy reach of Worcester’s amenities and transport links.
If you’re considering a move, or simply want to explore what’s available in the local market, get in touch with our team – we’d love to show you what these exciting developments have to offer.

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

Local Market Roundup

Over the same period the average sale price increased by 2% to £294,540. Houses represented 89% of total sales averaging £320,003 while flats making up the 11% averaged a sale price of £151,694. Malvern’s average price rose by 3% to £310,822, Droitwich saw a 3% increase to £282,917 and Worcester’s average increased slightly by 2% to £264,226.

Over the past year the average rent for properties in Worcestershire increased to £904 per month representing a 5% increase in average rent over the year. 42% of homes let in the past 12 months were flats, achieving an average rental value of £746 per month. Houses achieved an average rent of £1,042 per month.
In Droitwich rents have climbed by 7% to £867 per month with flats averaging £668 and housing averaging £1075. Malvern experienced an 5% increase reaching £990 per month, with flats averaging £825 per month and houses £1084. Worcester’s average rent rose by 3% increase to £885, with flats achieving an average rental value of £765 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

The average house price rose to £268,319 in February 2025, a 5.4% year-on-year increase (ONS). The average price of property coming to market rose by 1.4% this month to a new record of £377,182, a larger-than-usual April price increase according to Rightmove. UK house prices are projected to rise by 2.5% in 2025.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 grown by 0.5% in February 2025, with growths in all main sectors, following no growth in January (ONS). CPI inflation rose by 2.6% in the 12 months to March 2025, down from 2.8% in February (ONS).

Lettings Market

Average void periods lengthened slightly from 20 days in February to 21 days in March.
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.
The average rent in March was £1,288, up 1.2% 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.  

Community News

The Big Worcestershire Garage Sale Returns for Its Third Year!

The much-loved Big Worcestershire Garage Sale is back for its third year, bringing together communities across the county for a day of bargain hunting, treasure finding, and charitable giving – all from the comfort of residents’ own driveways!

Taking place on Saturday 14th June, this community-wide event sees residents host garage sales at their homes on the same day, offering everything from antiques and collectibles to clothing, homeware, and more. Whether you’re looking to declutter, discover hidden gems, or simply enjoy a day out in the neighbourhood, this event is the perfect way to get involved.

This year, the event is proudly supporting St Richard’s Hospice, with participants having the additional option to choose to donate a portion of their sales or make a direct contribution. Plus, any unsold items can be dropped off at three designated collection points at the end of the day, ensuring they find a second home through St Richard’s Hospice charity shops across Worcestershire.

To take part see the news section of our website or email [email protected] for more information.

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.