Worcester, Droitwich & Malvern Market Update – May 2022
COMMENT
According to a report recently published by Dataloft and RICS more choice is returning to the housing market, with a greater number of agents reporting a rise in new instructions in both the sales and lettings market for the first time in a year. Letting instructions were also positive for the first time since July 2020.
Tim Bannister, Director of Property Data at Rightmove has also observed, “The strong market momentum has carried over from last year and, combined with the impetus of the spring moving season, has delivered the quickest selling market we’ve ever seen. The high speed of the market and competition among buyers when making an onward move will be deterring some owners from putting their homes up for sale. However, if you can secure both a quick sale and a quick purchase then it’s a lot less stressful than the uncertainties of a slower market when finding a buyer for your own home can drag on for months or not happen at all”.
If you are contemplating a move this could well be the ideal time so why not have a conversation with us and get the ball rolling?
LOCAL MARKET ROUNDUP
The latest Land Registry figures, for the year ended 31st January 2022, indicate there were 4350 sales in Worcestershire, 27.5% more than the previous year; reflecting a significant post lockdown recovery. 646 sales in Malvern represents an increase of 32% and 1920 sales in Worcester, is 36% higher. In Droitwich, the year on year figures are very similar at around 430 sales which is 25% below the pre-pandemic average reflecting far fewer properties coming to the market.
Average house prices have increased significantly across the county in the last twelve months with Malvern rising 7.6% to £286.8K with Droitwich just behind at £277.9K up 5.8%. In Worcester, where 44% of the sales took place, the average sales price now stands at £241K up 5.2%.
The lettings picture has been fluctuating over the last twelve months, with an increase of 6% recorded in the Worcester average. Droitwich after cooling recently sits at £747 3% below the Worcestershire average whilst Malvern remains 7.6% ahead at £832
NATIONAL MARKET
Close to 115,000 sales took place in March, the third highest March in the last decade (after 2021 and 2016). The HMRC estimate over 330,000 sales have taken place in the first quarter of 2022.
Over 290,000 property sales completed in the first quarter of 2022 according to new data released by TwentyCi. At present there are just over 172,500 properties for sale across the UK, with 237,500 sold (subject to contract).
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
Inflation rose to 7% in March, with prices rising at their fastest rate for 30 years. Fuel prices were the biggest contributor to the rise, recording the largest monthly increase since records began. The Bank of England next meet on May 5th, where they will decide whether to raise interest rates from 0.75%.
The UK economy grew by 0.1% in February, a slower rate than many economists expected. The slowdown follows 0.8% growth in January. The UK economy is however 1.5% above its pre-coronavirus pandemic level in February 2020.
At 2.02% the average mortgage rate remains lower than two years ago but household saving levels are now at their lowest level since the start of the pandemic.
LETTINGS MARKET
Rental values continue to rise across all regions of the UK, annual growth currently strongest in the East and South West. Demand for property continues to outpace supply creating sustained pressure on prices.
Rents 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). The National Residential Landlords Association estimates that removing the 3% additional stamp duty for additional properties could add 900,000 homes to the private rented sector, and deliver an extra £10bn in revenue for the Treasury. They predict private rented stock could drop by over 500,000 over the next decade if taxes are not reformed again. Which does beg the question; if there is nothing to rent and house prices keep rising, where are people expected to live?
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: [email protected]