September 2024 Property Market Update

September has brought a mix of developments in the UK property market, impacting buyers, sellers, landlords, and renters. With mortgage rates beginning to stabilise and significant legislative changes underway, it's essential for everyone to stay informed.

In September, UK house prices surged by nearly £3,000, as reported by Rightmove. The average asking price for a home increased by 0.8%, reaching £370,759. This rise is notably higher than the long-term average increase for this time of year, which is typically around 0.4%.

Factors contributing to this boost include the recent drop in mortgage rates, an increase in available properties, and faster growth in household earnings relative to inflation and house prices.

Here’s an overview of the key trends shaping the market, along with some practical tips for navigating these changes.

Buying: A Time for Cautious Optimism

For prospective buyers, there is some relief as mortgage rates are falling and the market is slowly adjusting. First-time buyers, in particular, might now find more affordable entry points. However, despite this positive trend, there are still some uncertainties ahead. These include potential changes in the Bank of England’s base rate and upcoming announcements in the October Budget.

Tips for Buyers:

Shop Around for Mortgages: With more competitive mortgage products becoming available, it’s wise to compare offers and speak with a mortgage broker. Fixed-rate deals can provide peace of mind, especially with economic uncertainties still lingering. 

Check Your Long-Term Affordability: Ensure your monthly mortgage payments will be manageable, even if your circumstances change. While interest rates are decreasing, affordability checks by lenders remain strict, so plan conservatively.

View our current properties for sale in Torbay & Teignbridge on our website.

Selling: Setting Realistic Expectations

The time to sell a property has increased, according to Rightmove, with average homes now taking around 60 days to sell. Buyers are being more deliberate in their choices. This means sellers need to be patient and make sure their properties stand out in a competitive market.

Tips for Sellers:

• Focus on Presentation: Staging your home well can significantly improve its appeal. Invest in minor repairs, fresh paint, and professional staging if possible. First impressions count, and well-presented homes tend to sell faster.
• Price to Market Conditions: Avoid overpricing. Properties that are priced too high can languish, leaving you frustrated.
• Be Flexible with Viewings: Make your property accessible for viewings by accommodating various schedules. The easier it is to view your home, the faster you’re likely to attract serious buyers.

For sellers interested in tracking house prices, several sources provide valuable insights:

• Halifax publishes a monthly house price index based on its mortgage data.
• The Office for National Statistics (ONS) uses data from the Land Registry to offer the most accurate measure of house prices, though it has a three-month delay.
• Nationwide and Zoopla also track house prices. Nationwide reported a 0.2% decrease in August but a 2.4% annual increase, with average prices at £265,375. Zoopla's data showed a 0.5% rise in July, with average prices now at £266,400.

Each of these sources uses different methods to track prices, so it’s beneficial to consider them all for a comprehensive overview of the market.

For property in Torbay & Teignbridge, iMove Estate Agents is best placed to offer information on house prices, tips and advice. Please do call us on 01626 242349 or email info@imoveestateagents.co.uk.

Landlords: Preparing for New Regulations

September 2024 is a key period for landlords, with the Renters' Reform Bill expected to significantly alter the landscape. The abolition of Section 21 no-fault evictions, along with stricter rent regulations, will reshape how landlords manage their properties.

In addition, landlords need to start preparing for the 2030 requirement for all rental properties to meet a minimum Energy Performance Certificate (EPC) rating of “C”.

Tips for Landlords:

• Stay Informed: Make sure you understand the implications of the Renters' Reform Bill. Joining a landlord association or investing in property management could help you stay on top of legal updates.
• Plan for Energy Efficiency: Begin upgrading your rental property to meet the future EPC requirements. Energy-efficient properties will not only comply with regulations but could also be more attractive to eco-conscious tenants.
• Retain Good Tenants: With increasing tenant rights, focusing on tenant retention is more important now than ever. Offering longer tenancies or incentives like minor upgrades can help maintain a stable rental income.
• Consider Professional Management: With the legislative environment becoming more complex, it may be worth hiring a professional property management company to handle compliance and day-to-day operations.

For landlords considering property management in Torbay & Teignbridge, call us on 01626 242349 or email info@imoveestateagents.co.uk for information on our services.

Renters: Higher Costs, More Rights

While renters face rising rents and high demand for properties, the Renters' Reform Bill brings new protections. The abolition of Section 21 evictions is a major win for renters, offering more stability. However, this could also lead to landlords being more selective.

Tips for Renters:

• Know Your Rights: With the introduction of the Renters' Reform Bill, tenants will have more power. Educate yourself about your rights, including how landlords can and cannot evict you and what standards they must meet.
• Be Prepared to Act Fast: Competition for rental properties remains fierce. Have your documents and references ready to move quickly when a property becomes available.
• Consider Flexibility: If you’re struggling to find a rental in a competitive area, consider expanding your search radius or being flexible with your preferred moving date. Being adaptable can open up more options.

View our latest properties for rent in Torbay & Teignbridge on our website.

The Renters' Reform Bill: Major Changes Ahead

The Renters' Reform Bill is one of the most significant pieces of legislation affecting the private rental sector in decades. Aimed at giving tenants more protection, the bill is expected to abolish Section 21 no-fault evictions, introduce stricter rent increase controls, and enforce higher standards of accommodation.

Key Provisions:

• Ban on No-Fault Evictions: Landlords will no longer be able to evict tenants without providing a reason, making it harder for them to reclaim properties. This brings more stability for renters but could lead to landlords being more cautious in selecting tenants.
• Limits on Rent Increases: Landlords will be allowed to increase rents only once a year, and any increase must reflect market rates.
• Stricter Housing Standards: Landlords face penalties of up to £7,000 for properties that fail to meet a minimum standard.

For more information on the Renters’ Reform Bill, please speak with a member of our lettings team at iMove Estate Agents . We ensure we are always up to date with the latest legislation and developments and can assist landlords and tenants efficiently.

September 2024 sees a mix of cautious optimism and continued challenges in the UK property market. Falling mortgage rates provide some relief for buyers, while sellers need to adjust to longer sale times.

Landlords, in particular, must navigate an evolving regulatory landscape, with the Renters' Reform Bill set to bring about major changes. Renters, meanwhile, can look forward to stronger protections, but with higher rents and increased competition.

We are delighted to bring you our property market update each month. iMove Estate Agents are your local estate agents in Torbay & Teignbridge . Call us on 01626 242349 or email info@imoveestateagents.co.uk to chat with a member of our friendly and experienced team.