Bottoms up! (But rolling over at the top)

7 Aug 2020

Average UK house prices rise drive by lower value properties

This week in five seconds

  • Average UK house prices (£241k) rise +1.5% to +3.8% year-on-year
  • Price growth is driven by the bottom end of the market
  • Prime London forecast to drop 0% to -5% in 2020
  • Viewings slow for the summer

UK property prices - strong at the bottom

Both Nationwide and Halifax are reporting house price growth of +1.5% and +3.8% year-on-year respectively. The Halifax index indicates a more solid trend than Nationwide.

This is tying in with the activity we are seeing at the lower end of the market. At all prices below £900k we are seeing a very active market.

Notably the recent stamp duty changes (Movewise report) saves buyers £15,000 at prices £500k and above, which has a diminishing impact on the overall deal over £900k.

Prime London forecast to drop 0% to -5% in 2020

Strutt & Parker released a statement suggesting that Prime Central London will fall 0-5% in the year to 4Q2020 and those vendors who have to transact this year in low liquidity pockets of London may experience up to 10% declines.

This certainly ties in with the challenging environment we are seeing in Prime London. The large volumes of listings seen in central London have led to a competitive pricing environment.

Many agents are highlighting that your asking price is more important than ever.

The market is showing such price sensitivity that if you are on at just over the true market value you are likely to get no interest at all. Come on at an attractive price and you are likely to generate high levels of interest and in many instances offers over your asking price. The result of this appears to be two distinct categories of activity: those that are achieving lots of interest and very good offers and those that are struggling to even get viewings.

We would encourage our Prime Central London vendors to be cognisant of this dynamic.

If you are not getting viewings and want to sell this year we would suggest dual listing the property to ensure we have got good market coverage with the agents, listen to the feedback we are getting and if you don’t want to wait for 2021, consider price adjustments . Contact us here for more information.

Summer impacting viewing numbers in London

Many people still taking advantage of being able to go on holiday so viewing numbers are down, particularly at the top end of the market 

Agents almost back to full force

Many agents are only back to full teams this week so we are likely to see much more viewing activity over the next couple of weeks.

Have a great weekend all.

The Movewise Team

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