2nd November 2017
Market comment – October 2017
Another solid month. “UK house price growth edged up to a 3 month high in October” according to the Nationwide. Also, annual growth in house prices peaked up to 2.5% up from 2.3% in September, as a shortage of homes in the market and low mortgage rates propped up prices the Nationwide have commented.
It is my view that we have seen a solid and steady month again because of low mortgage rates, unemployment going down and a shortage of good housing stock. The general lack of homes on the market is supporting house prices. As I write this, it is widely expected that the bank of Englands momentary policy committee is to raise interest rates from 0.25 to 0.5, but it is important to remember that these are still historically and incredibly low, even if they do go up. I will obviously comment further if this increase takes place. I have read reports this month of fragile consumer confidence, however it is important to bear in mind that both from a lettings and sales perspective we all need somewhere to live and whilst moving is a luxury for some, it is a necessity for others.
Looking at our figures across October going into November, we saw an increase in prospective purchaser enquiries, although small it was an increase from the month before. Analysing these prospective purchaser enquiries, we have seen a greater increase for houses and looking at statistics, the average semi-detached house in Croydon now stands at £427,788 and a detached house at £660,693 with a contrast to Greater London (not central London) where the average semi detached house is £561,030 and detached at £853,244. Interestingly, in Crystal Palace the average detached house is now £751,908.
It’s been the first full month for trading for our new South Norwood flagship office and I was over the moon to note on Rightmove we have already moved to number 1 in sales and number 1 in lettings for New Instructions having only been open 5 weeks. I am very proud of the staff there as they have put in extra effort, hours and work to be the market leaders in the first month. I have had many comments from the public and clients who are thrilled to see that we have revitalised the South Norwood building and equally from many people who have noticed all our for sale, sold, to let and let by boards up.
Turning to the lettings market, from September to October, we have seen rents level out but it is still a picture where landlords have between 5 and 7 tenants per property and therefore are being understandably very choosy. I predict this situation will not change through the rest of 2017, particularly as the areas we operate in are such value for money and I am sure I don’t need to point out the connectivity of East Croydon to Central London is only 14 to 15 minutes.
To summarise, the UK Economy seems to have held its own in quarter 3, with the latest data showing our economy grew by 0.4% by the end of the quarter to the end of September and still with 1,850 residential transactions across the UK according to HMRC, this in the 9thconsecutive month with sales over 100,000 and these statistics underpin a stable market, particularly in the areas all of our offices operate in and I suspect we will see right through to the end of 2017.
I look forward to reporting to you mid to end of November.