Both Nationwide and Halifax reported strong September house price growth of +1.0% and +1.6% respectively from August to September. This represents an enormous +5.0% and +7.5% house price growth year on year. Property is crushing the stock market with the FTSE 100 falling -21% over the same period. This represents the strongest house price growth since 2016.
This strong price performance is outside the capital and in lower value properties with the average UK property now being worth £250k. Notably London which is experiencing significant oversupply is not seeing such price movement (“UK hot, London cold”).
We are seeing a good number of investors in the market this week both buying and selling. Movewise took on a number of tenanted properties with tenants in situ and offers have come in within a week.
If you would like a conversation on how to sell with tenants in situ and the sort of yields that are attracting investors do contact us here or call 02074094350.
Lots of buyers are talking about wanting to get lending agreed and a property under offer before the furlough scheme and stamp duty holiday ends (March 2021). Lenders are still removing products from the market and being very cautious with their lending causing some sales to fall through.
External Wall Fire Review form challenges (EWS1) are increasingly cropping up in property sales chains. Movewise had two sales this week where the EWS1 report had been completed but stated that the building needs work. This has meant that until works are agreed and scheduled it won't be possible to get a mortgage on the property, reducing the market to only cash buyers and resulting in existing offers falling away.
We released an article this week “When is the best time to sell a property?” In a rising market later is always better than earlier. Within the year early January through Spring is good and not much happens at Christmas. Most of the government support measures in place will roll away by March 2021 so to take advantage of the current strong prices and government schemes we recommend getting listed now.
Have a great weekend all.
The Movewise Team