Worcester, Droitwich and Malvern Market Update- November 2019
LOCAL MARKET ROUNDUP:
Over the last 12 months there have been 4926 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 close to £250,000; however, in Worcester where over 43% of the sales took place, the average sales price was 12% lower at £221,741.
The Lettings picture is slightly different with the average rent achieved in Worcester and Malvern being similar to the WR postcode area average of £653 with Droitwich nearly 30% higher at £833. Rental growth of 4%, has been seen in Worcester over the last twelve months whilst Malvern the figure was 7% and in Droitwich the figure is an impressive 15%.
Hot on the heels of our 10th anniversary, at the beginning of October, I was a little nervous, but deeply honoured, to be invited to appear on stage in London, at The Best Estate Agent Guide Awards, one of Estate Agency’s most prestigious awards ceremonies; representing the “next generation”. I find it very encouraging that our distinctive approach should be recognised by our peers, in this way.
I was also delighted to discover Nicol & Co was judged to be “Exceptional” in both sales and lettings, having recently taken part in the biggest assessment of any industry, with over 3 billion data points being analysed
and 20,000 mystery shops carried out in search of this year’s top performers.
This places Nicol & Co among the top 3% of more than 15,000 estate agents, across the UK, who will appear in the independently assessed, Best Estate Agent Guide, complied by the Property Academy and backed by Rightmove, the UK’s leading property website.
I hope you will forgive me blowing our own trumpet a little in this update but we are very proud and here to serve you. Our goal is simply to provide you with remarkable service. We would love to hear from you if you would like to discuss any property requirements.
Sales level in September were at their highest monthly level since August 2017 according to the HMRC. 101,740 sales completed, up 2.3% year on year. Quarter on quarter sales volumes rose 1.8%.
Prospective sellers remain hesitant, however, buyers seem undeterred. Rightmove report year-on-year sales are down just 0.5%, although new listings in October are 13.5% lower.
The Bank of England report 65,545 mortgages were approved in August, down -0.9% on a year ago. Quarter on quarter mortgage approvals were up 2.3%, thanks to the uptick in approvals seen in July.
At 0.3% growth in the UK economy in the three months to August was slightly higher than expected. Analysts expect growth of 0.5% over quarter 3, and 1.3% over 2019, down slightly from 1.4% in 2018 and 1.9% in 2017.
UK inflation remained unchanged in September at 1.7%, a fall in petrol prices a main contributor. The Bank of England forecast inflation to end the year at 1.6%.
The Bank of England has maintained the interest base rate at 0.75% but has warned that rates may go ‘either way’ in the event of a no deal Brexit as uncertainty persists. Rates may stay ultra-low or rise sooner than expected.
Average rents paid by UK private tenants grew by 1.3% in the year to September, a rate of growth, which has remained unchanged from May. Strongest growth is currently in the South West and Yorkshire and the Humber.
Tenant demand has risen for eight consecutive months according to the RICS. At the same time, falling stock levels are putting some upward pressure on rents.
Agents expect average rents to rise by 2% in the next 12 months, rising to 3% growth per annum in the years to 2024. This rate of growth outstrips the anticipated rise in sales prices over the same period (2% per annum).
Over the last 12 months, the average rent achieved for properties let in the WR Postcode area was £653 per month. This is a +3% change on the previous 12 month period.