State of your local property market: May 2024
May was a month full of political twists impacting property. We had another Bank of England meeting, the General Election date was set, and the Leasehold and Freehold Reform Act became law. Locally, we saw more activity than expected with many people exploring the market. However, the housing market remains very price-sensitive. Overpriced properties are definitely sticking around longer.
The current landscape
We asked Matt Jacobs, Managing Director, at Jacobs Steel, what’s been happening in the local property market throughout May, and behind the scenes in the branches. Here’s what he had to say:
“Regardless of the up-coming general election, which can sometimes cause uncertainty, the market remains very buoyant with a high level of activity both in terms of viewings and new properties being listed for sale.
Recent news confirming the rate of inflation has continued to fall has increased market positivity and the chance of an upcoming interest rate drop later in the year. Whilst the outlook for the market looks positive, it still remains a buyer’s market and in many cases, sellers have to remain open-minded on their asking price if they are seeking a fast sale.
Our pipeline of agreed sales across the business has reached a new high, which has been driven by a higher volume of sales, but also the length of time sales are taking to complete is longer than usual.
The summer continues to attract out of area buyers and a higher level of available stock, so if you’re thinking about a move, now is a great time to explore the market!”
Mortgage rates
The current Bank of England base rate is 5.25% as of 9th May 2024. The next review is scheduled for 20th June 2024.
The celebration from mortgage advisors up and down the country could rival a stadium from the Euros following some big news in May. We spoke to our in-house mortgage advisor, Adam Dumbrill, to hear his take on things:
“May delivered good news for the mortgage world: rates are beginning to fall and we now have inflation down to 2.3%. We can but hope this will lead to the Bank of England lowering the base rate. It might be a month too soon but we can be hopeful, and believe the outlook is definitely brighter than of late”.
As of Tuesday 4th June 2024, the current average mortgage rates are shown below (sourced from (https://www.uswitch.com/mortgages/):
Rental market
We caught up with Ollie Whiting (MARLA), Lettings Manager at Jacobs Steel to hear what’s he’s been noticing throughout April and as we bound towards the summer:
“The busy world of lettings continues in the same vein as we have seen over the last couple of months. We are approaching the busiest time of the year for the rental sector with the peak summer months on the horizon.
In other parts of our industry, the Renters Reform Bill is at a critical stage with the government announcing a date for the General Election, as it stands the Bill has passed through the House of Commons and has had its first reading in Lords.
The next step is a committee stage in Lords, which can usually take some weeks, provided the Bill emerges from committee without significant conflicts with the version of the bill agreed by the Commons. It could then quickly progress through final procedures in Lords before being given Royal Assent and becoming law.
However if that doesn’t happen by the time Parliament is dissolved, then any Bill that has not received Royal Assent will not enter into law and cannot be continued into the next Parliament, even with a Conservative win.”
If you have any questions and are thinking of letting a property out, or if you are looking to rent a property, our team is ready to help get you moving.
Commercial property
Leigh Doherty, Commercial Manager, has an in-depth understanding of the commercial property market. Here’s what he had to say:
“Thankfully, the weather is now turning, and we are seeing a big uplift in new instructions, particularly in retail High Street shops, and the availability spreads from all over Worthing, to Brighton. We have three new shops coming on in Baker Street, Brighton, and several shops in Tarring Road, Worthing. The good news is that we are receiving lots of enquiries, and, in some cases, we have several applicants per available unit.
We have some exciting developments coming up too, which already benefit from planning permission so if you are seeking this kind of opportunity, please contact our commercial department to register your interest”.
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
There’s a lot going on in the world of property right now. It is a naturally very busy time of year and 2024 is no different. In fact, the overall feeling is that we are starting to see glimmers of normality – pre-2022 ‘shake up’ – throughout the market as rates settle, confidence grows and activity thrives.
The property market from Worthing to Brighton & Hove continues to grow, spring forward and heat up as we head towards the summer. 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. Nathan Emerson, Chief Executive of Propertymark, explains that adjustments are needed to align valuations with market expectations as we continue to progress further into 2024. Consult with local agents familiar with the neighbourhood’s housing market.
Get an online valuation or contact our team to discuss your property requirements.
