Orchards Estate Agents

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2023 so far...

With just a few weeks left of 2023, and a busy year so far in both our sales and lettings departments, here’s our run-down of the market as it stands today, and how it’s fared since this time last year...

Sales

As you’ll almost certainly recall, the tail end of 2022 was far from ideal. The mini-budget sent waves of change through the economy, with a hike in interest rates that would come to affect the property market in significant ways.

At Orchards—and we’re confident across the board—2023 represents a different, perhaps more considered approach to buying and selling. Figures from September and October 2022 showed 211 new properties come to market, while September and October 2023 showed 226. This increase on last year indicates that people still have the desire to move.

There has, however, been a slight drop in the percentage of properties selling. In MK45, 63% of new listings sold in 2022, with 57% selling in 2023. This year to date, our sellers have been up to 24% more likely to sell when listing with us than other Ampthill agents. In fact, we’ve completed on £23,405,120 worth of property so far in 2023, highlighting that there are buyers out there actively looking for their new homes, and homes out there for those who want/need them—and we’re working to matchmake the two!

Although we’ve not seen extreme variations to the level of those looking to move, there has been a settling of prices due to a sense of caution surrounding borrowing in particular. With interest rates spiking to heights unseen for many years, resultant higher repayments are eating into budgets, and so we’re honestly valuing and successfully selling homes in accordance with these new degrees of affordability and opposition. We’re seeing rates starting to come down (for a two-year fixed-rate mortgage, the average rate is 5.17%, down from 5.35%), and the market following suit from the ups and downs of the last few years.

More stretched buyers means a longer wait for an offer, as there’s more to take into account when purchasing a property. The days of multiple offers within the first week have faded, but this more prolonged period of marketing is normal. We’re seeing firm interest in homes priced correctly and presented to their best, both of which come as standard at Orchards. We’re agreeing sales in an average of 6.1 weeks, which is between 22% and 43% faster than our local competitors, but overall slower than last year’s figure of 4.1 weeks.

 

Lettings

As for the lettings market, there’s been a solid shift in the market. Rents are at their highest ever, demand continues to far outstrip supply, and interest rates have not only made a dent in the number of landlords leaving, or considering leaving the market, but have caused a ripple effect in what choice there is for tenants. The Rental Reform Bill is edging closer, and there are important changes afoot for the industry.

We’ve listed 73 properties to rent so far this year, compared to 85 in the whole of 2022. Fewer homes creates greater competition for tenants, and so we’re continually looking to list homes for our hefty database of qualified tenants, currently at 1,061 strong. Rental properties are much-needed, highlighted by the fact they’re flying off the shelves/portals in an average of 10 days.

The average rental price sits at £1,650pcm, compared to £1,320pcm this time last year, showing just how lucrative the market still is for landlords. Although costs to let a home may have increased, we offer a valuable service to landlords, saving them money, time and effort in the long run, and keeping them abreast of rules and regulations.

As for mortgages, interest rates on a buy-to-let mortgage are even lower than owner-occupier rates, with the lowest available at 4.19% for interest-only on a 75% LTV for an initial two-year fixed rate, or 4.54% on a five-year fixed-rate term.

For anyone looking for a property in and around Ampthill, you can’t go wrong by investing in this area. Properties are always sought after, the schooling is excellent, commuting remains as convenient as ever, and the area is a fantastic place to live.

 

Adam Barker, Director, shares his stance on the 2023 property market:

“It’s been a learning curve, and buyers and sellers have had to adjust quickly—as have we. The fact remains that motivations to move don’t go. People still need to upsize, downsize, move closer to work, schools or loved ones, but they’re very conscious of their choices at the moment, meaning more properties are requiring more viewings to sell. We’ve seen a dip in the price of properties coming to the sales market, but as long as people can move past the egotistical part of property values, prices moving unilaterally across the market in order to make mortgages more affordable means that most people moving are actually better off when it comes to their cash position, even more so when moving up the ladder. When comparing the position of a family selling at £500,000 to buy at £800,000, with a family selling at £450,000 (10% less) to buy at £720,000 (also 10% less), overall, the family positioning themselves at 10% less save £56,620 in the first year of ownership. The breakdown of this can be viewed here.

“As for the lettings market, prices have continued to rise, but we feel they’re likely to have peaked for the tim being. The winter months tend to be avoided where possible for tenants moving due to increased running costs such as additional heating, and the holiday period meaning increased personal expenses too. But we expect prices to continue to rise throughout 2024, and given the mortgage market is actually cheaper for buy-to-lets at the moment, there’s obviously appetite out there to try to kickstart buy-to-let borrowing again. Hopefully this will mean more stock becoming available over the next 12 months, slowing the price growth slightly as we have to be mindful of the affordability of rent too. The cost of living coming down is likely to immediately benefit renters over homeowners, so that should enable tenants to feel a little more comfortable over the next 12-18 months.”

To discuss all aspects of buying, selling, letting or renting, contact us on 01525 40 22 66 or email ampthill@orchards.co.uk