The latest data shows both buyers and sellers are adapting to the changing financial conditions more quickly than many had anticipated.
","Slug":"watford-and-hertfordshire-property-news-1","Date":"2023-03-25","news_category":{"Title":"SALES","Slug":"sales-and-lettings"},"Image":{"alternativeText":"","url":"https://ggfx-rolstons.s3.eu-west-2.amazonaws.com/i.prod/PROP_NEWS_28f30f1534.jpg","url_sharp":{"childImageSharp":{"gatsbyImageData":{"layout":"constrained","backgroundColor":"#486828","images":{"fallback":{"src":"/static/0383695432a8f90368d38eb2c147eb1b/e9fbf/PROP_NEWS_28f30f1534.jpg","srcSet":"/static/0383695432a8f90368d38eb2c147eb1b/47073/PROP_NEWS_28f30f1534.jpg 210w,\n/static/0383695432a8f90368d38eb2c147eb1b/92751/PROP_NEWS_28f30f1534.jpg 420w,\n/static/0383695432a8f90368d38eb2c147eb1b/e9fbf/PROP_NEWS_28f30f1534.jpg 840w,\n/static/0383695432a8f90368d38eb2c147eb1b/92058/PROP_NEWS_28f30f1534.jpg 1680w","sizes":"(min-width: 840px) 840px, 100vw"},"sources":[{"srcSet":"/static/0383695432a8f90368d38eb2c147eb1b/5dc88/PROP_NEWS_28f30f1534.webp 210w,\n/static/0383695432a8f90368d38eb2c147eb1b/239c3/PROP_NEWS_28f30f1534.webp 420w,\n/static/0383695432a8f90368d38eb2c147eb1b/61848/PROP_NEWS_28f30f1534.webp 840w,\n/static/0383695432a8f90368d38eb2c147eb1b/831ed/PROP_NEWS_28f30f1534.webp 1680w","type":"image/webp","sizes":"(min-width: 840px) 840px, 100vw"}]},"width":840,"height":480}}}},"Author":{"Image":{"alternativeText":"Rolstons-Paul Gillespie","url":"https://ggfx-rolstons.s3.eu-west-2.amazonaws.com/i.prod/Paul_Gillespie_2x_5c5e5db142.jpg","url_sharp":{"childImageSharp":{"gatsbyImageData":{"layout":"constrained","backgroundColor":"#083878","images":{"fallback":{"src":"/static/6ddf4ee79416270a24fb9ddd87fc0457/d4a57/Paul_Gillespie_2x_5c5e5db142.jpg","srcSet":"/static/6ddf4ee79416270a24fb9ddd87fc0457/40657/Paul_Gillespie_2x_5c5e5db142.jpg 16w,\n/static/6ddf4ee79416270a24fb9ddd87fc0457/77b35/Paul_Gillespie_2x_5c5e5db142.jpg 32w,\n/static/6ddf4ee79416270a24fb9ddd87fc0457/d4a57/Paul_Gillespie_2x_5c5e5db142.jpg 64w,\n/static/6ddf4ee79416270a24fb9ddd87fc0457/19e71/Paul_Gillespie_2x_5c5e5db142.jpg 128w","sizes":"(min-width: 64px) 64px, 100vw"},"sources":[{"srcSet":"/static/6ddf4ee79416270a24fb9ddd87fc0457/e789a/Paul_Gillespie_2x_5c5e5db142.webp 16w,\n/static/6ddf4ee79416270a24fb9ddd87fc0457/ef6ff/Paul_Gillespie_2x_5c5e5db142.webp 32w,\n/static/6ddf4ee79416270a24fb9ddd87fc0457/8257c/Paul_Gillespie_2x_5c5e5db142.webp 64w,\n/static/6ddf4ee79416270a24fb9ddd87fc0457/6766a/Paul_Gillespie_2x_5c5e5db142.webp 128w","type":"image/webp","sizes":"(min-width: 64px) 64px, 100vw"}]},"width":64,"height":64}}}},"JobTitle":"Managing Director","Name":"Paul Gillespie","Position":1},"Content":[{"id":"641f1654b622acd3a608311c","moduleType":"NormalText","moduleData":{"Text":"The latest data shows that both buyers and sellers are adapting to the changing financial conditions more quickly than many had anticipated. Normally, at this time of year, asking prices show a marked increase as spring approaches. This year, the rising cost of living and mortgage rates mean budgets are being squeezed, slowly the previously frenetic pace of the housing market. In response, sellers have shown surprising restraint, keeping their asking prices down at more or less the same level as in January. As a result, sales volumes are holding up well at just 11% below their typical pre-pandemic levels (2019) - a marked improvement on the 30% drop that occurred just after Liz Truss' mini-budget.
\nIt would be reasonable to assume sales to first-time buyers would be most affected by the current conditions, but their 7% fall is notably lower than the 11% average. That may well be because high rents and the lack of supply in the rental sector are making purchasing a property an increasingly attractive option.
\nMatthew Marchant Rolstons's Director of Sales says:
\n\"The frantic market of recent years was unsustainable in the long term. Our key indicators now point to a market which is transitioning towards a more normal level of activity after the market turbulence at the end of last year. Our agents are reporting that they are now increasingly seeing buyers with more confidence and more choice, albeit with revised budgets to accommodate higher mortgage rates.\"
\nThe other leading indices are all painting a fairly similar picture. Although Nationwide's figures show prices fell by 1.1% last month, they also reveal consumer confidence and the economic outlook is improving. Nationwide, therefore, believe the market will remain subdued for a while but that conditions should gradually improve if inflation moderates in the coming months as expected, easing pressure on household budgets. Solid gains in nominal incomes, together with weak or declining house prices will also support housing affordability, especially if mortgage rates edge lower in the coming months.
\nHalifax's index shows house prices rose by 1.1% in February, but despite their more positive figures, they also believe the market will remain subdued.
\nPaul Gillespie, Managing Director at Rolstons, says:
\n\"Recent reductions in mortgage rates, improving consumer confidence, and a continuing resilience in the labour market are arguably helping to stabilise prices following the falls seen in November and December. Still, with the cost of a home down on a quarterly basis, the underlying activity continues to indicate a general downward trend.\"
\nRental & Buy-To-Let Market
\nThe slight declines in national average rents over the last few months came to a halt with February's 0.3% rise. It means rents have risen by 10.2% over the last two years, reaching £1,175 pcm.
\nBreydon Duffy, Lettings Manager at Rolstons, notes though, that something different is going on in the capital. Unlike the rest of the country, the average rent decreased for for the third month in a row. Back in November, rents had briefly risen above £2,000 pcm for the first time. There is no doubt affordability is far more stretched in London, so rents may have hit a temporary ceiling, although demand remains incredibly high, supply is constricted and voids are falling. In mitigation, tenants' average salaries are also rising, but not as fast as rents.
\nDuffy says:
\n'It is still a little early to predict whether this will be a sustained pattern or whether London will follow the pattern of the wider country and see prices rise again in the coming months.'
\nWhat is clear is that the government needs to act soon to dissuade any more landlords from selling up, or shortages will become even more acute, and rents will rise even higher.
\nAnd finally
\nWith the onset of Spring, new opportunities will arise in the sales and lettings markets.
\nSellers and landlords should start their journey with a property valuation. One of our local experts will answer any questions you have on the area, the market, the sales and lettings process and what Rolstons can do to help your property goals happen in 2023.
\nBuyers and tenants can get started by registering their details with us to receive property alerts. If you're registered, we will let you know as soon as a matching property hits the market, so you can book your viewing before the rush.
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FURTHER INFORMATION
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