Expert advice for buyers and sellers as demand rebounds

ZOOPLA’S latest House Price Index shows that September brought an uptick in buyer demandandthenumberofsales agreed. Demand rose by 12 per cent this month while sales are also up.

Analysts say the rise in enquiries is partly seasonal but also reflects improved consumer confidence and homeowners who expect mortgage rates to fall.

Zoopla adds that despite mortgage rates over five per cent delivering a significant 20 per cent reduction to household buying power compared to early 2022, many house hunters remain unwilling to make compromises on the size of home they are looking for.

The buyers’ market continues to prevail with 80 per cent more homes available for sale compared toSeptemberlast year. The average discount to asking price for a newly agreed sale now stands at 4.2 per cent. This number is being skewed by London andtheSouthEastwhere discounts are greater at 4.8 per cent. This figure stands at 2.8 per cent for the rest of the UK.

Yorkshire property veteran Andrew Beadnall, co-founder of Beadnall Copley estate agents, which operates in the sought after Golden Triangle, has given us his thoughts on the market and says that while nationally house prices may not have risen by much in the last 12 months they have gone up in Yorkshire and the Humber. According to Rightmove, they have grown by an average four per cent.

Andrew adds that a note of caution and says that even the most sought after areas, the market is price sensitive. He says “As an agent it is vitally important to give honest and accurate advice when it comes to pricing even if this may not be what a seller wants to hear. The truth is that demand has fallen since the height of the market 18 months ago.

“For those of us operating in the Golden Triangle it has meant that instead of 15 to 20 buyers coming forward with offers after an open day, it is down to five to ten viewings in the first couple of weeks and two or three buyers wanting to make offers.

“The position of buyers has changed in so much that those who are selling a property seem more motivated to move and are the ones coming forward with good offers at or around the asking price, whereas buyers in a stronger position with cash in the bank seem more likely to come forward with bigger discounted offers. Sellers still have the best chance of getting the highest price in the first six weeks of marketing.”

Andrew stresses that good marketing is vital to ensure a property stands out from the competition and points out that higher mortgage rates combined with inflated building costs have meant that homes in excellent condition are most in demand. Meanwhile, buyers requiring a mortgage are looking to put down higher deposits in order to secure the best rate possible and therefore do not have the funds left available to spend on refurbishing a property.

While the sales market is not asbuoyantasitwaslastyear,Andrew says that the lettings market however is showing no sign of slowing down and with higher mortgage rates making purchasing difficult for some buyers, renting is the other option.

He adds: "This has led to a strong increase in demand, and combined with the shortage of properties to let, has created a steep rise in prices. It is now not uncommon for rental properties to go to best and final offers in excess of the quoted rental price within the first few days of marketing.”