We’re halfway through 2023 now, and there have been ups and downs in the property market. Here’s what’s been happening at Orchards over the last couple of months…
Sales
We listed some fantastic homes in May and June, from full-on projects to palatial period properties, for first-time buyers and seasoned homeowners alike. As many as 240 properties hit the market in our local area during the last couple of months, compared to 201 during the same period of last year. With a market in flux, this shows a 20% increase on 2022. People are still moving, however, their reasons for doing so may now differ. Prices are settling, and we’re seeing an adjustment in asking prices to align with affordability.
On average, offers were accepted on properties listed with us within 41 days. This is slower than last year’s figure, as buyers are naturally taking their time to ensure a home is right for them and their budgets. Compared to competitors in the area, we found suitable buyers 36% sooner than our nearest competitors.
May and June this year saw far fewer completions take place than in 2022 due to fewer sales being agreed at the beginning of the year. Sold prices for May and June 2023 have been on average 10% below that of last year, and we envisage this to settle at 15% below last year’s peak. The time between agreeing an offer and handing over keys is taking 16-18 weeks, which is faster than the same period of 2022, again due to a reduced number of transactions.
Mortgage borrowing has been in the news a lot lately, with interest rates rising along with the base rate. Fixed-term rates are from 4.8%, and tracker rates from 4.9%. With a huge number of households facing renewal this year, and of course mortgages affecting movers, as mentioned earlier, property valuations and listings will reflect this environment.
Lettings
On the lettings side, in May and June 2023, we listed 11 properties for rent. During the same timeframe in 2022, we saw 13 reach the market, which is a 16% decrease. We’re finding the demand for properties to rent far outweighs the number available on the market, with our database of pre-approved tenants awaiting suitable homes, and ourselves eager to assist landlords with filling their properties with suitable residents.
Monthly rents have increased an average of 15% compared to last year, perhaps due to ownership becoming more challenging. With high demand, lets are being agreed efficiently.
On the buy-to-let mortgage front, current interest rates sit at 6.05% for interest only on an 75% LTV, for an initial five-year fixed term. In Ampthill and the surrounding areas, we have wonderful homes, lusted-after locations, superb schools and convenient commuter links, so a rental property here makes for a great investment.
Adam Barker, Director, shares his stance on the current property market:
“We’re seeing a very price-orientated sales market. While properties are still selling, it’s extremely important they’re priced accurately. Lettings wise, we still have high demand from tenants for rental properties, just not with enough properties available for that demand. With rental figures the highest the market has ever known, it’s an ideal time for any potential landlord looking to rent out a property.”
To discuss all aspects of buying, selling, letting or renting, contact us on 01525 40 22 66 or email ampthill@orchards.co.uk
