Worcester, Droitwich and Malvern Market Update- December 2019
LOCAL MARKET ROUNDUP:
Over the last 12 months, there have been 4804 sales across this area. The local markets of Droitwich Spa and Malvern, where Nicol & Co will soon be opening their third office, have seen similar levels of activity with 602 and 660 sales respectively.
They also have similar average prices just over £250,000; however, in Worcester where over 43% of the sales took place, the average sales price was 12% lower at £220,828.
Source: Dataloft Land Registry
The Lettings picture is slightly different with the average rent achieved in Worcester and Malvern being similar to the WR postcode area average of £652 with Droitwich 28% higher at £832. Rental growth of 5%, has been seen in Worcester over the last twelve months with a similar figure in Malvern whereas in Droitwich the figure is an impressive 14%.
Source: Dataloft Market Rental Analysis (rental data is based on achieved rents for approximately 10-15% market share, depending on location).
COMMENT
Having recently invested in our rebranded website it’s very encouraging to learn we have been ranked in the top ten Estate Agency sites in a recent survey undertaken by Artdivision Digital Marketing & Design.
Their view was our website “has a classic purple and green colour scheme great icons and clean images. If you go deeper into the website, you will find some great step-by-step guides to the various services that they offer”.
We know the importance of our online presence as each month, the top 10 property portals appear in 15 million Google searches. In today’s world it is a given that buyers use property portals to search for their potential new home.
Rightmove was named the portal of choice by over 75% of buyers and sellers in research conducted by the Property Academy. It is the number one most searched-for portal, with over 11 million Google searches each month.
Don’t forget to take a look for yourself.
NATIONAL MARKET
TwentyCi report 966,464 homes exchanged in the 12 months to the end of September, up 2.2% year on year, lower price brackets and younger buyers fuelling the market. Across the market, new instructions were 1.7% lower.
The MHCLG is set to trial Reservation Agreements across two pilot regions during the first quarter of 2020, in a bid to see, if fall-through rates reduce from the 25%-35% discovered by MHCLG research; prospective purchasers will be asked for £500-£1000 in the form of a non-refundable deposit.
ECONOMY
Base rates were held at 0.75% in November although two members of the committee voted for a decrease, which is the first split vote since June 2018. The latest report has raised the possibility that rates could be cut in coming months if Brexit uncertainty persists.
Wage growth continues, average wages rising by 3.6% in the three months to September, twice the rate of current inflation. Wage growth is anticipated to remain just above 3.5% during the final quarter of 2019.
The UK has avoided falling into recession during the third quarter, the economy growing by 0.3% in the three months to the end of September. However, growth is currently at its lowest level in nearly a decade, and is set to fall back during the final quarter.
LETTINGS MARKET
Rental prices are expected to rise in every region of the UK over the next three months as buyer demand continues to pick up and new instructions slip back according to the latest report published by RICS.
The proportion of homes let by accidental landlords has fallen for the first time in five years according to Hamptons International. One in fourteen homes that came onto the rental market across Great Britain in 2019 had been listed for sale within the previous six months, the lowest level since 2015.
On the flip side highlighting the benefit of proactive management early eight in every ten renters have experienced a problem renting, according to the HomeOwners’ Alliance 7th annual Homeowner survey, polled by YouGov.
Issues with landlords account for a significant number of problems, with nearly two-fifths of all renters finding it difficult to get their landlord to carry out maintenance and repairs. A third of those who had experienced problems, found their landlord unprofessional.
‘Poor heating and ventilation’ was cited as the second most common problem among tenants. By April 2020, all rental properties will be required to have an EPC rating of ‘E’, to comply with the 2018 ‘Minimum Level of Energy Efficiency’ standard. Just 12% of properties let over the past year have held the top rated EPC rating of A or B.
If you would like to speak to our Lettings Team please call 01905 675999.