The housing market remains busy. Compared to the last ‘normal’ market of 2019, buyer enquiries are up 31% and mortgage approvals and sales are up by 12% and 11% respectively. However, there are half as many properties available to buy and stock levels are down 55% (Rightmove, HMRC, Bank of England). The prolonged mismatch between demand and supply continues to support prices. On average, properties are selling subject to contract in just 31 days, the quickest time ever recorded. With competition for properties remaining high, Rightmove report that asking prices have hit their fourth consecutive record high in as many months.
Over 433,000 homes in the UK changed hands in the first four months of 2022, making this the third busiest start to a year since 2007. Last year was an exceptional year due to Covid-19 and 2016 saw a surge prior to the introduction of the 3% additional homes surcharge. Except for last year, April 2022 has been the busiest since 2007 (Dataloft, HMRC). More than one in every 25 properties has changed hands across the West of England and South Wales in the past year. Cheltenham and North Somerset are currently the most active housing markets in the region.
A perfect storm
Economic headwinds are gaining momentum. Expectations of global and UK economic growth have been pared back, while consumer confidence has plummeted to its lowest level since records began in 1974. Optimism is weaker than during the global financial crisis, Brexit or Covid-19 (GfK). The Covid recovery, war in Ukraine and rising energy and food prices, alongside a strong labour market and low unemployment, have created a perfect storm. Inflation is pushing a 40-year high. Thanks to fixed-rate mortgages, many households are cushioned from the impact of the latest base rate rise, but day-to-day budgets are increasingly feeling the squeeze.
Double-digit property price growth remains evident in many localities in the West of England and South Wales. Annual price growth in the South West and Wales is currently stronger than it was a year ago (ONS, UK HPI). Across the region there is less than two months of available stock left to sell, down by almost half on the historical norm.
Slow gear change
For many, the question is when, not if, the property market will start to moderate. However, any gear change is liable to be slow and steady, and not an emergency brake as was the case in the global financial crisis of 2008. Forecasters still anticipate positive price growth over the course of the year. Market fundamentals remain strong. A strong desire to move remains in the minds of many and there is a shortage of properties, compounded by data indicating that new home completions remain below pre-Covid levels and short of the government’s 300,000 homes target.
Properties for sale in West of England and South Wales
Tetbury, Gloucestershire, 3 bedrooms
This newly converted townhouse has been subject to a stunning and extensive renovation producing a unique, high quality home set in the heart of this desirable Cotswold town. With a striking front elevation of stone mullion arched windows, the property has been sympathetically refurbished in keeping with the Grade II Listed character using reclaimed materials alongside stylish contemporary finishes. The townhouse is located in the very heart of Tetbury's town centre with an abundance of shops and restaurants available immediately from the doorstep making this an ideal Cotswold second home in addition to a permanent residence.
Bridgwater, Somerset, 4 bedrooms
Tucked away in the heart of Stawell is this stunning four bedroom barn conversation covering over 2,300 sq. ft. of characterful accommodation together with a large sunny garden neighbouring fields, ample parking and two large outbuildings covering over 1,000 sq. ft. providing tremendous scope to convert (subject to planning permission and necessary consents) and is a most appealing prospect for buyers.
Cowbridge, South Wales, 6 bedrooms
Immaculately presented, detached, six double bedroom house with gardens, adjacent paddock and stable block extending to approximately 0.98 acres and enjoying spectacular countryside and coastal views. Finishes include solid oak floors, to ground, first and second floor accommodation, ceramic tile floor to kitchen and bathrooms, solid oak internal doors and staircases, high quality fitted kitchen with quartz worktops.
As property prices and demand continue to rise, sell your property with experts in the property industry this spring. Contact your local Guild Member today.