Worcester, Droitwich & Malvern Market Update – April 2021

COMMENT

The Dataloft Demand Index shows a 36% increase in housing market demand since the start of the year with the traditional spring market set to be busier than ever.

Demand rose 13% between February and March, with Rightmove reporting sales in the first week of March up 12% year-on-year. The number of buyers enquiring per available property was 34% higher.

Confidence is an important contributor to the housing market and the amazing pace at which the vaccination programme is being delivered has come as a welcome shot in the arm to us all. Everybody can now see light at the end of the tunnel and begin to plan seeing one another face to face.

The economy thankfully seems to be responding with equal vigour. The government is now underwriting 95% mortgages; interest rates are likely to remain at their historic lows for at least two more years and fewer people will be jetting off to the sun this summer this all points to a healthy housing market with some commentators predicting 7-10% growth this year. If you are contemplating a move don’t get left behind, we would love to hear from you.

LOCAL MARKET ROUNDUP

Reflecting the impact of COVID-19, over the last twelve months, there have been 3319 sales in Worcestershire, this is 35% less than the previous year. In Malvern, a 28% reduction in the volume of transactions resulted in 497sales. 417 sales in Droitwich Spa represents a reduction in activity of 38% year on year.

Average house prices in Droitwich Spa sit at £261k with Malvern similar at £258.3K. In Worcester, where 41.5% of the sales took place, the average sales price is 11.9% lower at £227.7K.

The Lettings picture has been changing over the last twelve months with a 11% increase in the Worcester average to £669. Malvern is a little higher at £715, which is now 7.5% below the overall Worcestershire average of £723, which has risen by 12%; Droitwich Spa which has shown recent growth remains highest at £906.

NATIONAL MARKET

According to Rightmove, sales are already agreed on almost two out of three properties on agents books. The number of sales agreed in the first week of March were up by 12% on the same time last year.

An estimated 147,050 transactions (seasonally adjusted) were recorded in February 2021, 49% higher than February 2020 and 23% higher than January 2021 (HMRC).

ECONOMY

The UK economy is predicted to grow by 4% in 2021 and 7.3% in 2022, and set to recover to pre-pandemic levels by mid-2022.

The latest forecast by the Office for Budget responsibility now expects a faster and more sustained economic recovery than forecast in November. The government has announced that the furlough scheme will be extended until the end of September.

The scheme has supported over 11 million jobs since March 2020.  The unemployment rate rose to 5.1% in the three months to December, 1.3% higher than a year earlier and 0.4% higher than the previous quarter. The OBR now anticipate unemployment will peak at 6.5%, substaially down from the 11.9% in earlier forecasts.

LETTINGS MARKET

According to ONS average rental values across the UK rose by 1.4% in the year to February 2021. Rents in the UK excluding London increased by 1.7% in the year to February 2021. According to the RICS February survey rental growth expectations have strengthened due to an imbalance between landlord instructions and tenant demand. +37% of agents expect rents to rise over the next three months.

COVID SECURE VIEWINGS

Under the latest lockdown restrictions you are still permitted to move house. Nicol & Co has operated safely and effectively throughout the previous lockdown periods and will continue to do so carefully following the latest government guidance. We have Covid Secure procedures and policies in place to ensure we operate safely reducing social contact and the risk of spreading the virus.

If you have any questions, please contact us.

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