Lewis Wingate, manager of our Bury St Edmunds office, reviews the property market as we enter peak season

It feels as though it has been a long time coming but summer is fast approaching and with it comes a cautious air of optimism throughout the housing market.

Posted: June 9, 2023

Lewis Wingate

 Gardens are finally in full bloom, spring cleaning complete, barbecues ready to be wheeled out once more and those lazy summer evenings provide a welcome change of pace. The usual flurry of activity observed in the property market following Easter took longer to materialise this year than first expected but there has been undeniable increase in the number of homeowners committing to the process and looking to make the move over the months that follow and place their property on the market.  

As a group, we have seen the number of available properties more than double since the beginning of the year while the time taken to find a buyer has extended to 57 days from the approximate four-week time-frame of a year ago. With an increase in the amount of available property for sale, we are enduring an inevitable period of pressure on prices while the number of new buyers entering the market struggles to keep pace. It was always expected that spring and early summer would see the biggest influx in new properties reaching the market and so it will be interesting to see if the current trajectory continues through to Autumn. While many people are motivated to move, most remain reliant on a related sale and as a result, patience is a pre-requisite in waiting for a chain to complete. Accurate appraisals and pricing strategies are essential in ensuring your property gets the appropriate level of interest in its first few weeks of marketing.

Rightmove calculate that on a national basis the average sale price agreed is 3.1% below the asking price, demonstrating that buyers are reflecting the wider uncertainty over interest rates, mortgage products and living costs in their spending habits. It’s not all bad news though with reports from our preferred financial services advisors that an average five year fixed rate mortgage with a 15% deposit now attracts an interest rate of 4.56% compared to 5.89% last October with both electricity prices and inflation slowly on the way down.  

The rental market remains particularly buoyant as we continue to see a consistently high demand for properties from high-quality tenants. While information on the finer details is yet to be finalised, proposed reform of this sector is on the way with the proposal to remove section 21 ‘no fault’ evictions and landlord’s ability to opt against tenants with pets, in addition to the more stringent energy regulations set to come into force in the near future.

Our fully managed holiday let portfolio continues to grow at a fantastic rate as we enter peak season for guests booking weekends away and enjoying everything our region has to offer. Now is an excellent time to consider launching your property to gain immediate traction and start to get 5* reviews to grow your listing. If you are considering investing in holiday lets or currently own one and would like to review your options, we would be delighted to hear from you.

With a number of variables profoundly affecting the property market on a weekly basis, we stand by our founder’s core principle of ‘best advice’ at all times and we would be very pleased to speak to you if we can be of assistance.

Posted: June 9, 2023   •   Posted in: Market Update

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