Whether you’re thinking about buying, selling, letting or renting, as we move into the final quarter of 2023, you and many others might be wondering whether it’s too late to buy or invest in new properties before the new year.
To help you find the answer to this question, we’ve summarised the current property market conditions for you and reveal why now might be a good time to take action.
What’s happening in this last quarter of 2023?
As we move into winter, the property market is showing signs of a shift. The latest Rightmove House Price Index reveals that the average new seller's asking price has increased by 0.5% (+£1,950) this month to £368,231.* This is the smallest average asking price increase at this time of year since 2008, however the average number of buyers enquiring per property is 8% higher than 2019.* All of this shows signs that the property market is becoming more balanced, with buyers having more choice. However, it’s important for sellers to price their properties correctly from the outset to achieve a successful sale. As a buyer, if you find a property within your price range, be ready to place an offer by ensuring your finances are in place.
Having a closer look at Wales, average house prices currently are £258,448, reflecting a monthly decrease of -0.6% and a yearly decrease of -1.2%.* Out of all the regions in the UK, Wales has the longest average time to sell with 66 days, although London isn’t tracking far behind with an average of 65 days.*
The average asking price for properties in Scotland is £187,386, a 0.5% yearly increase and -1.5% month-on-month decrease from September.* Scotland continues to lead in terms of the shortest amount of time needed to sell, which is 31 days.*
Is the pressure on the rental market easing?
Over the last year, rents have increased by 9.56% in the whole of the UK, reaching an average of £1,283 per calendar month (pcm) and £2,192 pcm in London alone.* This marks a 0.55% increase to last month, and although this has slightly slowed from previous month’s 1.19% mark, the pressure remains high on both tenants and landlords as all work towards covering their costs.*
Is now a good time to invest in property?
Whether you’re an experienced landlord or have inherited a property that you’d like to let, there are several reasons why investing in property is still a good idea, including but not limited to the following:
- Average UK rents are still increasing, currently at +9.56% annually, reaching £1,283 pcm.*
- Scotland’s annual rental growth is +12.0%, reaching £952 pcm.*
- Wales’ annual rental growth is +7.88%, reaching £863 pcm.*
Although affordability may dampen some of the rental growth, it should not deter investors and landlords from investing in the rental market.
So, is it too late to buy, sell or invest before the New Year?
In short, no, it’s not – whether you’re a buyer, seller or investor.
It’s important to understand that average house prices are still £115,062 (39.5%) higher than 10 years ago, and although we’ve experienced a dynamic market throughout 2023, it’s showing continued resilience. This makes investing in bricks and mortar a good long-term investment choice.**
What are the benefits of getting started now?
- Avoid the New Year rush: As a seller, getting your property on the market in time for the post-Christmas spike means you increase your chances of being seen by more potential buyers. Rightmove reports that traffic to their website “more than doubles between Christmas and the start of the New Year” and, in 2022, Rightmove recorded the highest number of Boxing Day sellers coming to market.† “These early birds gain the advantage of reaching a huge number of potential buyers before the New Year,” says Rightmove’s Director of Property Data, Tim Bannister.†
If you’re looking to buy during this period, you can benefit from the increased number of properties launched in the Boxing Day spike. Therefore, increasing a buyer’s chance to find their perfect home.
- A fresh start: Many people view the new year as the season for new beginnings, making Boxing Day the perfect time to get ahead of the market.
- A smoother transition: By acting now, you increase the likelihood of completing your property transaction earlier in the new year.
- Peace of mind: Enjoy the holidays stress-free, knowing that you’re ahead of the new year rush, whilst others are only just starting to get their properties on the market.
No matter your situation, our property experts are here to help you with your property needs. Contact us today for more information, or get an up-to-date valuation to know how much you could sell or let your property for.
