Worcester, Droitwich & Malvern Market Update – June 2022
COMMENT
As the nation has been celebrating the Queen’s Platinum Jubilee, we’ve looked back at the changes in the housing market during the reign of Queen Elizabeth II. In 1952, the average price of a home was just £1,891. Adjusting for inflation that would be £57,997 today and yet the current average price of a home is over four times that figure reflecting the value of home ownership. Back in the 1950s, over two-thirds of households were renters; today close to two-thirds of households are owner-occupiers.
Currently more than one in three homeowners are in the process of, or are considering, moving home according to a survey of 3,000 respondents, conducted by Nationwide in April; suggesting that the level of activity in the housing market will remain healthy, despite the increasing pressure on household budgets which is impacting consumer confidence elsewhere.
A desire for space continues to motivate many with one in four of those moving, or considering a move, stating this was to move to a larger property, although 38% of those aged over 55 were seeking to downsize.
If you fall into either of these categories why not tell us about your plans and register your details with us ? That way you can be certain you’ll be amongst the first to find out about suitable properties coming to the market.
LOCAL MARKET ROUNDUP
The latest Land Registry figures, for the year ended 28th February 2022, indicate there were 4357 sales in Worcestershire, 25% more than the previous year; reflecting a significant post lockdown recovery. 650 sales in Malvern represents an increase of 26.5% and 1929 sales in Worcester, is 33 % higher. In Droitwich, the year on year figures are almost identical 422 versus 423 which is 25% below the pre-pandemic average which was boosted by a significant number of new build properties coming to the market at that time
Average house prices have increased significantly across the county in the last twelve months with Malvern rising 9% to £291K with Droitwich sitting at £268K. In Worcester, where 44% of the sales took place, the average sales price now stands at £237.6K.
The lettings picture has been fluctuating over the last twelve months, with an increase of 5% recorded in the average figure for Worcester. Droitwich, after cooling recently, sits at £749, 4% below the Worcestershire average, whilst Malvern stands 2% above it at £795
NATIONAL MARKET
At 9.8% the annual rate of property price growth slowed marginally in March whilst month-on-month average prices continue to rise. At £278,436 the average price of a property is close to £25,000 more expensive than a year ago (ONS).
Over 106,000 sales took place in April, 12% higher than the longer term 10 year average (2012-2021, excluding 2020). To date, in 2022, over 430,000 sales have taken place and market activity remains well above pre-Covid levels.
Properties are currently selling 20 days quicker than the long term average (Rightmove), with a significant proportion selling above initial asking price (Dataloft poll of subscribers). Needs-based buyers are the most active in the market place at the current time.
ECONOMY
UK inflation has risen to 9%, a 40-year high in the 12 months to April. The majority of the rise came from higher fuel bills as energy prices rose substantially following the removal of the energy price cap. The Bank of England now expect inflation will rise to double digits this year.
The unemployment rate fell to 3.7% between January and March. This represents its lowest level in nearly 3 years. At the same time, the number of job vacancies rose, outpacing unemployment levels for the first time since records began (ONS).
Base Rate has been raised by 0.25% from 0.75% to 1%, its highest rate since 2009 as the Bank of England tries to tackle the surging cost of living. This is the fourth consecutive rise since December.
LETTINGS MARKET
Average rents across the UK rose by 2.7% in the year to April according to latest figures released by the ONS. Excluding London at 3.4% annual rental price growth is twice the level of a year ago.
Rental values across all regions of the UK are expected to rise over the next three months; with surveyors projecting annual growth of 4.5%. Rents are anticipated to rise by an average of 5% per annum over the next five years (RICS).
Nearly one in every seven property sales (13.9%) across Great Britain in Q1 2022 were to Buy-to-Let investors, the highest proportion since the introduction of the 3% SDLT levy in 2016. Research by Hamptons indicates, for the first time since 2016, investors bought more properties than they sold.
COMMUNITY
If the pandemic has taught us anything, it is the value of community and who are the real heroes. Whilst it has been a difficult time for many of us, our key workers, teachers and volunteers have consistently stuck to their tasks. Like many, we really admire this commitment and want to continue to support them by donating £100 from every sale we make again this year. So far, we have donated over £20,000 to local organisations through our Community Fund. If you know of an established community organisation or local charity, based in Worcestershire that you feel should be on the list, of potential beneficiaries, please write to us and tell us why. Contact: community@nicolandco.co.uk