Worcester, Droitwich & Malvern Market Update – November 2021
COMMENT
September 2021 was the third busiest month for property sales across the UK since records began in 2005 (HMRC).
Tim Bannister, Rightmove’s Director of Property Data comments: “Competition for property for sale remains hot this autumn. Although more properties are coming to market, the level is still not enough to replenish the stock being snapped up.
Stock shortages will continue to drive prices upwards, albeit at a steadier pace. While a 0.5% increase in the mortgage rate is widely anticipated over the next six months, it is also expected rates will remain comparatively low as banks and building societies compete for business.
Against this background, sellers can be confident about coming to the market early to get ahead of their competition. Buyers obviously also know what the market has been like and are often prepared to wait while chains are built. Downsizers, particularly, should look to market early so that they can take advantage of the premium they are likely to receive before stock levels recover.
LOCAL MARKET ROUNDUP
Over the last twelve months, there have been 4192 sales in Worcestershire, reflecting the impact of COVID-19, 3% less than the previous year. 21% fewer transactions in Droitwich resulted in 477 sales but 618 sales in Malvern actually represents an increase of 6% year on year.
Average house prices have increased across the county with Malvern rising to £284.4K and Droitwich £274.8k. In Worcester, where 43.3% of the sales took place, the average sales price is 11.1% lower than the neighbouring towns at £240.7K.
The lettings picture has been changing over the last twelve months with a 7% increase in the Worcester average to £743. Malvern is now 10.6% higher at £822, 10.9% above the overall Worcestershire average of £763, which has risen by 7.7%; Droitwich Spa, which continues to show healthy growth, remains highest at £865.
NATIONAL MARKET
Rightmove report the price of property coming to market in October has risen across all regions and all markets of the UK, the first time a ‘full house’ of price rises has been seen since March 2007. The price of a property rose by £3,983, the largest October rise since 2015.
The average price of a property is £25,000 more expensive than a year ago. The ONS report annual price growth across the UK was 10.6% in August, up from 8.5% in July, the average price of a property now £264,244.
ECONOMY
In the Autumn budget the Chancellor described the economic picture as “strong” in the short term, with the Office for Budget Responsibility expecting the economy to return to pre-pandemic levels 6 months earlier than expected (by 2022).
Unemployment is expected to peak at 5.2% next year, lower than 11.9% previously predicted by the OBR. Wages have grown in real terms by 3.4% since February 2020.
Inflation in September was 3.1% and is likely to rise to an average of 4% over next year (OBR). Rising food, transport and energy prices could lead to interest rates rising sooner than the anticipated summer of 2022. The next meeting of the Bank’s Monetary Policy Committee is on November 4th.
LETTINGS MARKET
Rental properties are finding a tenant quicker than ever before, with it on average taking 21 days to find a new renter.
Dataloft Rental Market Analytics show average monthly rent in the UK to be 11% above pre-pandemic levels, year to September 2021 vs year to September 2019.
For the coming twelve months, national rental growth projections have moved above 3% for the first time since 2016. Source: Dataloft, Rightmove, Royal Institute of Chartered Surveyors
COMMUNITY
The last eighteen months have taught us who the real heroes in our community are. It has been a difficult time for many us but our key workers, teachers and volunteers have just soldiered on. We so admire their commitment that we want to continue to reward it by donating £100 from every sale we make this year. If you know of an established community organisation, in Worcestershire, that you feel should be on the list of potential beneficiaries please write to us at community@nicolandco.co.uk and tell us why.