Whilst the England team didn’t bring it home, with the end of July comes a breadth of positivity in the property market. With a new government now confirmed, uncertainty is wavering and local sellers have a new found confidence in moving home; and with an anticipated base rate cut at the beginning of August, there is further excitement among homemovers.
The current landscape
Matt Jacobs, Managing Director at Jacobs Steel, gives us his insights on what’s been happening in the local property market throughout July and behind the scenes in the branches. Here’s what he had to say:
“It’s been quite pleasing to see that the market this year has been more positive than last year. We’re still transitioning off of what was a crazy market in the height of 2021 and 2022 and naturally the market needs to recover when interest rates go up as quickly as they did. It takes time for the market to adjust and people to feel comfortable buying and selling again. There are some real benefits of selling and buying in this market; it’s not as pressured as it was in the height of 2021. In 2021 you’d almost actually only be able to view a property for 15 minutes and then you had to make a decision on how much over the asking price you had to go to secure it, whereas now we’re in a situation where you’ve got time on your hands to be able to view a property two three times and, naturally, people don’t feel quite the same pressure that they have to make an offer there and then – which then also means that when someone makes an offer they feel more confident about what they’re buying.
There have been less full throughs this year, and at Jacobs Steel we’ve seen a real uplift in the number of transactions; so much so, our pipeline is that the highest it’s ever been now in terms of sales, from sale agreed working their way through to exchanging completion.
Prices have adjusted, and it’s not always visible to be able to see how much they’ve adjusted because on Rightmove prices have remained somewhat similar. But properties are taking longer to sell in some instances, so you’ll see that prices have had to be reduced on some properties. Again, going back to the crazy market of 2021/22, it was common that properties were selling for over what they were marketed at. In some instances now, sometimes that price is negotiable and sellers have to be a little bit more flexible depending on how long it’s been on the market for.
We’re in a buyer’s market. It’s kind of gone back to how it always used to be, and that works well for a lot of people that are out there either looking to buy or sell. The hardest part in this market is that sellers still expect to almost achieve the top top price, and buyers are out there thinking they can get a bit of a deal. So our job is to be honest with everyone throughout that process to try and manage expectations on both sides. Every negotiation is different because everyone’s situation is different, every property is different; but that process of negotiating the sale now is potentially a longer one and sometimes a more technical one to work through. On the whole, we get there, but everyone just has to be that little bit more patient.”
Mortgage rates
The current Bank of England base rate is 5.25% as of 29th June 2024. The next review is scheduled for 01 August 2024 and many lenders have been slashing their rates throughout July in anticipation of a base rate cut.
As of Monday 29th July 2024, the current average mortgage rates are shown below (sourced from (https://www.uswitch.com/mortgages/):
Rental market review
Ollie Whiting (MARLA), Lettings Manager at Jacobs Steel shares his thoughts on the July lettings market:
“Traditionally, the months of June & July mark the beginning of the ‘high season’ for rental prices, where rents tend to peak between June & September, this is due to demand being at its highest during this period.
Historically according to the Rental Index, rents have risen between June & July every year since 2019, and this trend has certainly continued for a further year.
Properties advertised at the recommended price typically are under offer within the first few days – week of marketing, we are seeing increasing levels of demand from tenants which is standard for this time of year, and we’d expect these demand levels to continue throughout the peak summer months.”
If you have any questions and are thinking of either letting a property out, or if you are looking to rent a property, our team is ready to help get you moving.
Commercial market review
Leigh Doherty, Commercial Manager, has an in-depth understanding of the commercial property market. Here’s what he had to say:
“July continues to get busier for our commercial department and goes from strength to strength. We are delighted to have completed on a development site in Brighton, which was tricky to get over the line but was a great result. We have recently launched several industrial units, together with offices which are located from Littlehampton, through to Hove. We can offer flexible leases and all different types of sizes, so if you are looking for space, then please get in contact.
In addition, we have launched a property for sale in Rottingdean, which used to be a pharmacy, but now benefits from planning permission. We are also gearing up to sell 22 acres of land, which is just north of Brighton, and this is income producing however, could be suitable for redevelopment (STP).
Our busy instruction levels indicate confidence in the July commercial property market and I’m confident that this will continue throughout the summer.”
If you are curious about how much your commercial property is worth, or just require free advice, then please contact one of our friendly commercial team members or our commercial manager, Leigh Doherty on 01903 792785.
The road ahead
Confidence in the property market has continued throughout the general election and is showing no signs of slowing with a new government now in power. Whilst the market is still transitioning out of the craziness of 2021/22, there is positivity and confidence all round. Prices have adjusted locally, so sellers are having to understand that they won’t achieve what they would have post-covid and, with mortgage rates seemingly reducing, we’re hopeful that more buyers and movers will join the moving market in the next half of the year.
From Worthing to Brighton & Hove, property will continue to be in high demand, so our key piece of advice right now is to keep in close contact with local reputable agents. The market remains very price-sensitive and sellers are advised not to set overly high prices.
Looking to sell your home quickly? Get in touch with the team to book your valuation visit now.