Droitwich, Worcester & Malvern Market Update – March 2024
COMMENT
In the initial six weeks of 2024, the number of sales agreed has surged by 16% compared to the same period last year and 3% higher than in 2019 (Rightmove). The average property price experienced a robust 0.7% increase in January, marking the most substantial growth in a year, as reported by Nationwide.
The stable Bank of England base rate and heightened competition among lenders for mortgage business have led to a notable expansion in the availability of fixed-rate deals. In Week 7 of 2024, listings saw a 4% rise compared to the week 7 average from 2017 to 2024, signifying a positive trend in properties entering the market.
With a general election looming we are already beginning to hear what the various parties are thinking and where their priorities lie regarding the housing market. It would appear that efforts are anticipated on both the supply side, with encouragement for brownfield land development, and on the demand side, with rumours of incentives for first-time buyers in the upcoming March Budget.
Our advice is do not delay. By the time you are reading this the Budget details will likely be available. An election will only slow things down again, so if a move is on your agenda for this year, there is no time like the present.
LOCAL MARKET ROUNDUP
The latest available Land Registry statistics, for the year ended 30th November 2023, reveal that there were 38% fewer sales across the WR postcode area. The actual number of transactions being 2959. In Worcester and Malvern, sales were down 38% at 1304 and 462 respectively. The figure in Droitwich of 344 was down by 37%.
Over the last 12 months, 15% of the sales across the wider area were flats, at an average price of £150,977, while houses averaged £315,082 leading to an overall average of £282,733. Average sale prices vary across the county. Malvern’s overall average transaction value was £306,916 and, although down by 1%, remains highest. Droitwich at £281,639, which is up by 2% is next and Worcester, where 44.1% of the sales were recorded, the average price reduced by 1% to £251,191.
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 7% to £845. 42% of the properties let were flats, achieving an average of £711, while houses achieved £990 per month. The average rent for properties let in Droitwich is £750, 11.2% lower with flats here averaging £604 and houses £969. In Malvern, the average rent on homes let in the last 12 months was £892, 46% of properties were flats, achieving an average of £815 per month, while houses achieved £976 per month. Worcester’s figure remains just below the average at £826.
Across the WR postcode area, the average rent for homes let over the last 12 months increased by 7% to £845. 42% of the properties let were flats, achieving an average of £711, while houses achieved £990 per month. The average rent for properties let in Droitwich is £750, 11.2% lower with flats here averaging £604 and houses £969. In Malvern, the average rent on homes let in the last 12 months was £892, 46% of properties were flats, achieving an average of £815 per month, while houses achieved £976 per month. Worcester’s figure remains just below the average at £826.
NATIONAL MARKET
Figures recently reported by HMRC confirm the market reached a turning point at the end of 2023. 80,420 sales took place in December and whilst this is significantly below last year’s levels, it is less than 1% down on the previous month. Given the time of year, activity levels can generally be expected to be 1.2% lower.
The average price for a property in December was £284,691, down -1.4% year-on-year but up 0.1% on the previous month, representing the first positive monthly growth since August 2023 (ONS).
ECONOMY
UK interest rates have been left unchanged at 5.25% by the Bank of England for the fourth consecutive announcement. Monthly GDP is estimated to have fallen by 0.1% in December 2023, following a growth of 0.2% in November (ONS).
CPI inflation rose by 4.0% in the 12 months to January 2024, the same rate as the previous month (ONS).
LETTINGS MARKET
Annual growth in rental prices in the UK stayed at 6.2% in January, the same as in December and the strongest since records began. The Index of Private Rented Housing Prices reports on both new lets and renewals.
The average UK rent dropped by -0.6% in January to £1,260, but remains 7.5% higher than the same time last year (HomeLet). Rental price inflation is forecast to ease back to +5% through 2024, as tenant demand reduces against continued cost of living pressures (Zoopla).
MARKET INSIGHTS
In response to regular feedback we receive regarding the value of our Market Updates, we’ve decided to publish more regular market insights online. Having emerged from an unprecedented period of activity at the same time as having to cope with equally unusual economic pressures, there is now a greater measure of political uncertainty with an election on the horizon giving the media plenty to talk about.
Amid this turbulence, we believe it’s important for you to hear clear, evidence-based information to help you navigate the current market and make the right choices.
I’m always eager to share insights as we navigate the ever-evolving market. If you have any questions, feel free to reach out to me directly through our website or by following us on our social media channels. I’m here to offer support and guidance.
