Worcester, Droitwich and Malvern Market Update- October 2019
LOCAL MARKET ROUNDUP:
To match our expansion plans the reach of our market round-up has been extended to include the entire WR postcode area.
Over the last 12 months there have been 4918 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 604 and 662 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 £221,267.
The Lettings picture is slightly different with the average rent achieved in Worcester and Malvern being similar, at £605 and £685 per month respectively, with Droitwich nearly 30% higher at £813. Rental growth of 5%, has been seen in Worcester over the last twelve months whilst Malvern and Droitwich the figure is 9%.
COMMENT:
Considering the company’s humble beginnings, in a modest office Droitwich Spa, I am hugely proud of what we have achieved since I opened October 2009. Nicol & Co has become one of the most highly regarded and recognisable Estate Agency brands in Worcestershire and, as an award winning business, we now operate from our own premises in Droitwich Spa and occupy prestigious offices in Worcester.
We have no plans to sit on our laurels and with 10 successful years now under our belt I feel Nicol & Co is well placed, with an excellent reputation, to push forward into the next decade with exciting expansion plans including a third office in Malvern.
This business was born at the end of the financial crisis so we understand what it takes to achieve goals and ambitions in challenging times. Despite uncertainty elsewhere, I am looking forward to the next ten years, as we continue to grow, maintaining our focus on providing a remarkable service to our valuable clients through a dedicated team that consistently delivers.
NATIONAL MARKET:
The average price of a home rose by 0.7% in July compared to a year ago, according to the official UK house price index. Strongest growth is currently in Wales with prices rising by 4.2%.
Sales levels in August were 0.9% higher than a year earlier according to the HMRC. This is a significant turnaround from a -14.8% fall in July although momentum is not expected to be sustained into September.
Rightmove report average asking prices falling in September, the first fall since 2010 in a month that usually sees the beginnings of a seasonal bounce in activity.
ECONOMY:
UK Inflation slowed to 1.7% in August (down from 2.1% in July) which is its lowest rate since the end of 2016. Wages now comfortably exceeding inflation, providing a boost to household finances.
The UK economy was stronger than expected in July, growing by 0.3% in the month. The rise was largely attributed to growth in the service sector. While still weak, the latest figures have eased concerns of the country falling into recession in the third quarter.
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.
LETTINGS MARKET:
Average rents paid by UK private tenants grew by 1.3% in the year to July, a rate of growth which has remained unchanged from May. Strongest growth is currently in the South West and East Midlands.
The lettings market continues to see rising demand along with declining new instructions from landlords. The RICS report that this is supporting rental rises with expectations for further growth in coming months.
With the busy late summer lettings period in full swing, average void periods across the UK are currently just 11 days according to Goodlord.
Over the last 12 months, the average rent achieved for properties let in Worcester was £605 per month. This is a +5% change on the previous 12 month period.
45% of properties let in the past 12 months were flats, achieving an average rental value of £589 per month. Houses achieved an average rent of £715 per month.
60% of tenants are aged between 18 and 29.