The strongest sector of the market, according to Rightmove’s data of the last few months, has been the “second stepper” category, three bedrooms and non-detached houses with four bedrooms.
The middle and high-end market homebuyers still prioritise moving up the property ladder and needing more space, so these requirements remain a strong driving force despite the uncertain economic outlook.
On the other hand, we are experiencing reduced demand from first-time buyers due to the growing cost of living, rising interest rates and the ‘help to buy scheme’ coming to an end in October. 10% deposit on a first-time buyer-type home is now 57% higher than ten years ago.
Despite the difficulties of the economic pressures that are affecting personal finances all over the globe, the UK property market seems to stay resilient, and the average property price increase is 0.7% up on last month, and the buyer demand is up 20% on the pre-pandemic five-year average.
Positively, we can see a healthy number of properties coming on the market, which increases the selection of choices for house hunters. September’s instructions are 15% higher than the same month last year.
Autumn is traditionally a great season to sell a property.
As the end of the year approaches, buyers get into the festive mood and tend to be more active on property portals to search for their dream homes before the winter kicks in.
We are also expecting to see the effect of the September announcement of the stamp duty cut in this last quarter: the threshold for paying stamp duty raised from £125,000 to £250,000, and for first-time buyers, this will increase from £300,000 to £425,000. For first-time buyers, this will mean they do not have to pay stamp duty if their home costs less than £425,000.
International Buyers Market
We can see clearly that this political turmoil, economic uncertainty, and currency rate fluctuations created an opportunity for some international buyers.
Prices were nearly 22% lower than their peak when converted to Euros and 35% lower when converted to US Dollars, which is a significant discount for new buyers, but less beneficial for existing owners with a foreign currency loan.
Lettings Market
We can see clearly that this political turmoil, economic uncertainty, and currency rate fluctuations created an opportunity for some international buyers.
Prices were nearly 22% lower than their peak when converted to Euros and 35% lower when converted to US Dollars, which is a significant discount for new buyers, but less beneficial for existing owners with a foreign currency loan.
Here at Fraser & Co, we have the experience and knowhow to help you get the most from your property by selling in the right way. You can find out more about what we offer here.
You can also find out how much your property could be worth on the current market by checking out our free and instant online valuation tool. Please bear in mind that this data is automatically generated. If you would like to have an in-depth, personalised valuation with one of our property experts, please don't hesitate to contact us on 020 7723 5645 or pop into our local Fraser & Co office for a friendly chat.
Source: Rightmove, LonRes-
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