Author: Joshua Schofield

Interest rates have risen for a 14th consecutive time, with further increases expected. Average asking prices have fallen sharply, and rent is now cheaper than a first-time mortgage across most of the country. Read on to find out the latest property market news.

Interest Rates Rise Again

It’s bad news for homeowners as the Bank of England has raised the base interest rate for a 14th consecutive time to a 15-year high of 5.25%.

The increase will directly affect homeowners with variable and tracker mortgages, meaning an increased monthly payment.

In more negative news for homeowners, the Bank of England boss, Andrew Bailey, confirmed for the first time that interest rates are likely to remain higher for longer to curb rising inflation.

The next interest rate announcement will be made on the 21st September, when many economists expect another increase to 5.5% – a figure they’re predicting will remain in place for the next 12 months.

Asking Prices For UK Homes Falls at Sharpest Rate Since 2018

August saw its sharpest drop in asking prices for five years. This is a sign that the property market is continuing to slow.

The average asking price for a property new to the market is now £364,895. That’s 1.9% less than the previous in July, and £7,012 less in monetary terms.

While August is traditionally a slower month for property sales, the drop off is more than double the usual 0.9% fall in prices that are typical during the summer.

It’s not all bad news for sellers though. Average house prices remain 20% higher than they were this time four years ago.

Mortgage Rates Cut – But Don’t Expect it to Last!

In some welcome news for buyers and homeowners whose mortgages are coming up for renewal, the ‘big six’ lenders have continued to cut their mortgage rates since July’s peak. 

According to property website Rightmove, the average five-year fixed rate deal is now 5.81%, down from 6.08% last month.

While the rate cuts are undoubtedly positive for customers, it’s not expected to last. Many economists expect the price wars between the major lenders to end soon amid increasing interest rates and a high inflation rate showing no signs of dropping significantly.

Renting Is Now Cheaper Than First-Time Mortgages

In other property market news, figures released by property website Zoopla have revealed that monthly rents are now cheaper than first-time mortgages. These statistics haven’t been seen since 2010!

An increase in mortgage rates has seen interest soar to more than 6% in recent months, and according to Zoopla’s data, the average monthly mortgage payment for a first-time buyer with a 15% deposit now stands at £1,285. As for renters, their average monthly payment is £1,163. A difference of £122 per month or £1464 per year.

London and the South East are the worst affected areas. In fact, in the capital, average rents are £493 per month less than average mortgage payments – significantly less than the national difference.

Some areas of the UK buck the trend, including Wales, Scotland and Northern Ireland, but renting is currently the cheaper option for most of England. 

More Than 4 In 10 Adults Have Given Up On Owning A Property

In a survey of more than 2,000 adults aged 18-39, sadly 42% have given up on the idea of buying a property in the next ten years. 

The survey, commissioned by property website Zoopla, also revealed that a significant number of people earning more than £60,000 per year have also given up on owning a property in the next decade, with 38% feeling that it’s beyond reach.

The three main reasons for being unable to purchase a property were

The cost of living crisis

Increasing house prices

Higher mortgage rates.

Of the 14% of people who are planning to buy or who are in the process of buying, 85% of them have made financial sacrifices to do so. Typically, 34% have given up holidays and 30% have sacrificed socialising. 

The figures also revealed that 69% of those who are planning to buy or who are in the process of buying have made compromises on the property. Compromises include buying in an alternative area to the one they prefer, purchasing a smaller property than they planned, and choosing a property in need of refurbishment or renovation.

For more local property market news and updates and a more detailed overview of the Gloucestershire area, get in touch with TG Sales & Lettings. We are your local property experts. Call us on 01452 300822 or email rachel@tgres.co.uk.

Mortgage rates have seen their first fall in two months, although rents have risen at the fastest pace on record. Meanwhile, a major credit rating agency is predicting a significant downturn in property prices, and we reveal the places where your home is likely to sell the fastest!

Read on to learn about the latest property market news on these topics.

Mortgage rates fall for the first time in two months

Following the news that inflation has slowed slightly in the 12 months to June, mortgage rates have also dropped slightly for the first time in two months.

With inflation slowing to 7.9% and the Bank of England’s next interest rate rise expected to be less steep than previously feared, the fall in mortgage rates will come as welcome relief for the thousands of homeowners who are remortgaging in the next few months.

The average rate on a two-year fixed deal has fallen slightly from 6.81% to 6.79%, and for five-year deals, it’s dropped from 6.33% to 6.31%.

The Bank of England will next meet on Thursday 3rd August, to announce the latest base interest rate, where it’s expected to increase from 5% to 5.25% – a smaller rise than initially expected.

Rents are on the rise

Private rents rose faster in June than at any point since records began back in January 2016.

The cost of renting rose 5.1% in England in the 12 months to June, and in Wales and Scotland, the figures are 5.8% and 5.5%, respectively.

Across England, the figures vary significantly. In the North East, the rise was less steep at 4.4%, but the West Midlands saw the biggest climb, with rents increasing 5.4% over the period.

The increases come against a backdrop of mortgage rate rises, which have doubled in recent months, resulting in landlords passing on the increased cost of borrowing to tenants. There is also a continued surge in demand for rental properties, which far outweighs the number of properties available for rent.

Property prices are predicted to fall by 12%

Economists at one of the world’s leading credit rating agencies forecast a 12% fall in UK property prices, with little rebound prospect.

S&P Global Ratings forecast the double-digit fall to bottom out by the end of 2024, with a decline of 6.6% in 2023 and a further drop of 4.9% in 2024.

Their forecasts predict a stagnant market in 2025 and 2026, with just 1.4% and 3% growth, respectively.

The forecasts are based on the fact that interest rates will likely remain higher than they have for the past decade, meaning a potential slowdown in the housing market.

While the figures are concerning for homeowners, they could come as a relief for first-time buyers, although as with any economic predictions, the figures should also be taken with a large pinch of salt!

25 locations where homes sell the fastest

Figures released by property portal Zoopla revealed the locations where properties are selling quickly.

On average, UK properties are selling in 30 days, which matches the five-year average. Twelve months ago, the figure was as low as 19 days due to significantly increased competition in the market, but many of the locations where the property is selling fastest are more in line with that figure than the current national average.

Joint-top of the list is Eden in Cumbria and Newcastle upon Tyne, where properties are selling in 21 days on average. They’re followed closely by Bristol, Carlisle, Knowsley in England’s North West and Waltham Forest in London, which all see average selling times of 22 days.

One of the more surprising findings is that these areas are all spread across England and Wales.

In total, seven of the locations are in the North West, three are in the North East, three are in the South West, three are in the West Midlands, two are in London, two are in Wales, two are in the East of England, and there’s one each in the South East, the East Midlands and Yorkshire.

For the complete list of locations please see below:-

https://www.zoopla.co.uk/discover/property-news/zoopla-data-the-20-uk-locations-where-homes-sell-the-fastest/

The types of properties losing the most value

In a separate study by Zoopla, they revealed the properties that are losing the most value.

In a reversal of the ‘race for space’ trend during the pandemic, detached houses are seeing one of the most significant falls in value, with 43% of them seeing drops of at least 1% in the past six months.

However, it’s bungalows that are seeing the largest fall. 70% have recorded a fall in value over the past six months.

For more property news and updates and a more detailed overview of the property market in Gloucestershire, contact TG Sales & Lettings. We are your local property experts. Call us on 01452 300822 or drop us an email today at rachel@tgres.co.uk.

The turbulence in the UK housing market is showing no signs of slowing down, with mortgage rates continuing to rise, which is having a knock-on effect for renters. Read on to find out all the latest UK property market news.

Mortgage Rates Set To Continue Rising

Borrowers are being warned to brace themselves for further increases in mortgage rates over the coming months as the Bank of England struggles to curb high inflation.

The average interest on a fixed-rate mortgage is currently hovering at around 6%, with lenders withdrawing deals and raising rates relentlessly. To put this figure into context, a year ago, fixed-rate mortgages were available with an interest rate of around 3%.

The Bank of England announced another base interest rate rise on 22nd June, by a half point to 5% which will lead to even bigger mortgage repayments for the estimated 1.5 million homeowners whose fixed rates are coming to an end before the end of the year.

Any further rate increases are also likely to squeeze a number of first-time buyers out of the market as monthly repayments reach unaffordable levels for many.

Renters To Be Hit By Rising Mortgage Rates

It’s not just homeowners feeling the squeeze from rising mortgage rates. Research from one of the UK’s leading estate agents, Savills, has revealed that landlords are making their lowest profits for 16 years, with many looking to leave the sector.

At their peak, some landlords were making profits of as much as 23%, as low interest rates and attractive buy-to-let mortgages kept repayments low. However, many investors are now reporting profits below 4% – the lowest since 2007.

The findings are backed up by the Bank of England, which recently published figures that show the proportion of mortgages advanced to buy-to-let investors is at its lowest level since 2011.

Any influx of properties onto the market could lead to a drop in the number of homes available to rent, and, therefore an increase in rental prices as demand outstrips supply.

House Prices See First Annual Fall In 11 Years

The UK’s largest lender, Halifax, has announced a 1% fall in house prices compared with a year ago – the first drop since 2012.

According to their figures, prices are currently £3,000 lower than 12 months ago, and £7,500 lower than their peak in August, with current average property prices standing at £286,532.

Rival lender, Nationwide, has reported an even more significant drop in prices, with an annual fall of 3.4%, according to their data – the largest drop in 14 years.

While first-time buyers usually welcome a price fall, the continuing rise in interest rates is pushing monthly repayments out of reach for many would-be buyers. This comes at a time when the increased cost of living is also impacting their ability to save for a deposit.

Cheapest Cities For First-Time Buyers Revealed

A study by property website Rightmove has revealed the cheapest cities for first-time buyers to get a foot on the property ladder.

The average UK asking price for a first-time buyer property – a home with two bedrooms or less – is £226,399, and using this figure, they’ve scoured the UK to find the cities that offer the most for your money, with the top five all sitting comfortably less than half the national average.

Top of the pile is the West Yorkshire city of Bradford, where you can pick up a first-time buyer property for £104,643 on average. Carlisle in Cumbria is only marginally behind at £104,784.

The rest of the top 5 comprises Aberdeen, Hull and Dundee, the most expensive at £111,415 – still well below the national average.

Beach Hut On Sale For Eye-Watering Amount

If you’ve ever fancied owning a beach hut, now’s your chance – providing you have a spare £250,000 to hand!

That’s the price tag for an 8m x 3m hut on the sands in the Welsh village of Abersoch, Gwynedd, which will be a record sale for a beach hut in Wales if the asking price is met.

It’s not connected to mains water, and overnight stays are strictly forbidden, but you’ll still need to pay council tax of close to £800 per year!

If you’re looking to buy a place without overnight restrictions, it’s worth noting that the average property price in Wales is currently £214,000 – some £36,000 less than the starting price of the beach hut.

That’s right, £250,000 is the minimum asking price. If you’re interested in buying it, you have until 30th June to submit an offer in writing.

For more local property news and updates and a more detailed overview of the property market in Gloucestershire, get in touch with TG Sales & Lettings. We are your local property experts. Call us on 01452 300822 or email rachel@tgres.co.uk

Interest rates have increased again, 100% mortgages have been relaunched, and there’s welcome news for renters. Read on to find out the latest on all this and more.

Interest Rates Rise Again

The Bank of England has raised interest rates to 4.5%. This is the 12th rise in a row and the highest since 2008. The rise marks a 0.25% increase from the previous base rate as the bank looks to slow down inflation. The headline rate has recently fallen from 10.1% to 8.7%, taking it into single digits for the first time in months.

Their latest forecast indicates that inflation is expected to remain higher for longer than previously thought, with predictions that it will be above 5% by the end of the year. This is still way down on the current rate of 8.7% but more than double the bank’s target of 2%.

Renters’ Reform Bill Published

The Government has finally published its renters’ reform bill, which should make renting safer and fairer for tenants.

Some of the key benefits to come out of the bill for renters include:

• A ban on Section 21 ‘no fault’ evictions, meaning landlords won’t be able to evict renters without a reason. It’s hoped this change will allow renters to challenge bad landlords without fear of losing their homes.

• An increase to two months’ notice for rent increases. Renters can also challenge their new rent level via a tribunal if they deem it above the market rate.

• Renters will have a legal right to request a pet in their home. Landlords will have to consider the request and cannot unreasonably refuse it, although they can require renters to take out pet insurance for potential property damage.

• It will be illegal for landlords to have a blanket ban on renting to tenants with children or people who are receiving benefits.

• A Private Rented Sector Ombudsman will be set up, and landlords will be required to join it. This is intended to resolve disputes quickly, and it will have the legal power to make landlords take remedial action and pay compensation.

• The Decent Homes Standard will be introduced to the private rented sector for the first time. This will mean that landlords are forced to ensure their properties meet minimum standards to be fit for occupation.

As for landlords, the new bill will make it easier for them to evict nuisance tenants and reclaim their properties in instances of antisocial behaviour, while the two-month notice period for renters can be reduced for irresponsible renters who breach their tenancy agreement or damage the property.

Deposit-Free Mortgage Relaunched

Skipton Building Society has launched the UK’s first 100% no-deposit mortgage since 2008, in a move that is specifically targeted at renters.

The new initiative will mean that renters won’t require a deposit or a guarantor, but they must show that they’ve been paying rent on time for the past 12 months. They must also meet the lender’s credit score and affordability criteria.

Skipton’s new Track Record Mortgage is currently offered at a fixed interest rate of 5.49% for five years, which is slightly higher than the average five-year fixed rate mortgage deals for buyers with a deposit who can secure a rate of around 5%.

10 UK Towns Where House Prices Are Rising

With house prices dipping slightly in the first few months of the year, data from the Land Registry has revealed the towns where prices are still rising.

Top of the list is Guildford in Surrey. Prices increased by 11.54% between February and March, with the average price climbing from £518,526 to £578,450.

Sevenoaks in Kent was second on the list with a smaller jump of 6.93%, with prices going up from £595,136 to £636,437, while Cheltenham in Gloucestershire was third on the list. Prices there jumped 5.56%, from £327,104 to £345,257.

One of the most striking findings from the data was the wide geographical spread of the towns, with Salford, Rochdale, Harrogate, Truro, Torquay, Swindon and Wirral completing the top 10.

Your Chance to Own a Piece of TV History

Fans of the hit BBC sitcom Gavin and Stacey now have the opportunity to own one of the houses featured in the show, which has recently come to market for £212,000.

The 3-bedroom terraced house on Trinity Street in Barry was used as the home of Uncle Bryn throughout the show’s three seasons between 2007 and 2010, as well as its reappearance in the 2019 Christmas special.

For more local property news and updates and a more detailed overview of the Gloucestershire area, get in touch with TG Sales & Lettings. We are your local property experts. Call us on 01452 300822 or email rachel@tgres.co.uk.

Mortgage rates continue to edge down, the number of properties for sale is rising, and the UK’s priciest seaside town has been revealed. Read on to find out the latest property market news.

Mortgage Rates Creeping Down

Despite inflation remaining above 10%, and with interest rates expected to rise again in May, mortgage rates have bucked the trend and continued to edge lower.

Best Buy deals are currently available with rates of less than 4% – a stark contrast to the above 6.5% highs that followed then-chancellor Kwesi Kwarteng’s disastrous mini-budget last October.

The average rate on a two-year fixed-rate mortgage is currently 5.32%, however, some lenders have rates starting at 3.99%, and some five-year fixed-rate mortgages have an even more attractive rate of 3.92%.

Housing Market Bouncing Back as Number of Sellers Increases

The number of properties for sale has reached its highest level in more than two years, according to new figures released by Propertymark.

The organisation, representing more than 18,000 estate agents across the UK, reports that the average estate agent had 35 properties for sale per branch in March – the highest figure since January 2021. To put it into context, a year ago, each branch only had 20 properties on their books.

Propertymark also revealed that the number of house viewings increased in March – up by 21% from February’s figure – and the number of new buyers registering increased by more than 30% on average across each branch.

Frenzied Rental Market Continues to be Fuelled by Property Shortage

The limited number of homes to rent continues to be a major nationwide issue with no sign of letting up, according to the Royal Institution of Chartered Surveyors (Rics).

Fierce competition among tenants for the few properties available is expected to drive rental prices up by an average of 4% over the coming months, adding to the pressure of the rising cost of living.

Rics’ monthly survey shows that growth in demand from renters was at a five-month high in March, and this issue is consistent across the UK, as an increasing number of landlords are deciding to sell their properties when renters move out rather than re-let them.

This follows a study from a leading estate agent, which claims that around 140,000 landlords sold their properties last year to fund their retirement, increasing the shortfall of rental properties on the market.

Their research also revealed that between 2010 and 2022, the number of landlords retiring each year had doubled. With around 924,000 landlords already aged over 65 and young people unlikely to be able to afford buy-to-let properties, the number of rental properties on the market is expected to continue falling for some time.

UK’s Priciest Seaside Town Revealed

Salcombe has overtaken Sandbanks as the UK’s priciest seaside town, according to figures released by Halifax.

The average house price in the Devon town was £1.2m in 2022, around £300,000 more than second-placed Sandbanks, where average prices were £952,692.

Seven of the top 10 on the list were in Devon and Cornwall, while at the other end of the scale, Greenock in Scotland was the cheapest seaside spot, with average prices of £97,608.

Nine of the 10 cheapest towns were north of the border, with the Northumberland town of Newbiggin-by-the-Sea being the only exception.

10 Fastest Places to Sell a Home Revealed

Leading property website Rightmove has revealed the UK’s top 10 places to sell your home the quickest.

On average, properties take 55 days to sell across the UK, but the Scottish town of Falkirk bucks the trend, with properties taking just 22 days to sell in the Stirlingshire town, which lies between Edinburgh and Glasgow.

Seven of the top 10 places are in Scotland, the fastest place in the UK to sell a property, at an average of 34 days across the country. Surprisingly, the slowest area to sell a property in the UK is currently London, where it takes 65 days on average.

Hall Green in Birmingham and St. George in Bristol are the joint-fastest places to sell a home in England, with an average of just 26 days.

For more local property news and updates and a more detailed overview of the Gloucestershire area, get in touch with TG Sales & Lettings. We are your local property experts. Call us on 01452 300822 or email rachel@tgres.co.uk.

House prices have risen this month, buy-to-let mortgage choices are recovering, and there’s welcome news for homeowners in the Chancellor’s Spring Budget. Read on to find out the latest property news!

House Prices on the Rise Again

Figures released by Rightmove show that average property prices have increased in March as the housing market continues to defy predictions that it’s heading for a slump.

Prices rose by 0.8% across the country in March, only a little less than the typical 1% increase seen at this time of year for the past two decades.

The rise takes the average asking price of a property to £365,357 – an increase of nearly £3,000 on the previous month.

While spring is traditionally a buoyant time for the housing market, the increase is also partly down to a fall in mortgage rates in recent months, which soared to around 6% after the government’s mini-budget in September last year. With rates below 5% again, prices could rise modestly as we head towards summer.

Buy-to-let Mortgages Bounce Back

The buy-to-let market shows strong signs of recovery, with the number of different mortgages available at its highest level since before September’s mini-budget.

Around 2,400 buy-to-let mortgage deals are currently available to investors – a figure not seen since July 2022.

A typical two-year fixed rate mortgage can be secured, charging 5.81%, and five-year fixed rates charge a slightly more attractive 5.72%.

While these figures are encouraging for buy-to-let investors, the rates are still significantly higher than in previous years. In March 2021, the average interest rate on a two-year fixed mortgage was 2.14%.

How Does the Spring Budget Affect the Housing Market?

Mid-March saw the government’s Spring Budget revealed, and little was announced that directly impacts the housing market, but a couple of changes will affect homeowners and landlords.

While previous Budgets have seen changes to stamp duty, this year, it was explicitly focused on stimulating the economy and jobs.

For homeowners and renters, there’s some welcome relief with an extension to the support for home energy bills. The government’s previous support was due to end before April, but the extension means that bills will remain capped until the end of June. While customers will no longer receive monthly rebates of £66, the energy cap will stay at £2,500. It was previously due to increase to £3,000 from April.

In a change for landlords, the level of tax-free gains before they pay capital gains tax has been lowered, while stamp duty remains unchanged. First-time buyers are exempt from the tax for purchases under £425,000, while movers will pay no stamp duty on properties under £250,000.

Tenants Being Priced out of Major Cities

Data released by Rightmove has shown a significant rise in the number of renters priced out of major cities by rent and cost of living increases.

The figures reveal that rental prices are up 12% over the past year and that 42% of renters are looking to move out of the city they currently live in, compared with 37% a year ago and 28% in February 2020 before the Covid pandemic.

London is where most renters are being squeezed out, followed by Sheffield and Manchester, while Edinburgh is the city which has seen the most significant rise in rents, with average costs up 19% from 12 months ago.

While an increase in flexible and remote working has undoubtedly allowed some people to move out of major cities, Rightmove has confirmed that the primary drivers are the rising rental costs and increased competition for properties. Many renters are having to compromise on either location or the type of properties they are looking at to stay in the same city.

Areas Where Homes Are Selling Faster Than a Year Ago Revealed

With the housing market stabilising and buyers taking more time to look at what they can afford, the average time it takes to sell a property has increased to 66 days – an increase from 12 months ago when homes were being snapped up within 42 days on average.

However, Rightmove has released figures to show the areas where homes are bucking the trend and selling more quickly than they were this time last year.

Top of the list is Hoole in Chester, where homes sell in 32 days – more than half the national average.

It’s a similar story in Newcastle-upon-Tyne, where properties in Jesmond and Fenham are selling in just 33 days, along with Ashtead in Surrey.

At the other end of the scale, properties in Witney, Oxford, are selling in 58 days on average, which is still below the national average and much less than 12 months ago, when 75 days was the average selling time for the town.

For more local property news and updates and a more detailed overview of the Gloucestershire area, get in touch with TG Sales & Lettings. We are your local property experts. Call us on 01452 300822 or email rachel@tgres.co.uk.

Interest rates have risen yet again, average asking prices have increased by their smallest margin on record for February, and one major online estate agent has put itself on the market.

Read on to find out the latest property market news.

Interest Rates Rise Again

In a move that was widely expected, the Bank of England has raised interest rates from 3.5% to 4% – the highest level since October 2008.

It’s the 10th rise since December 2021, and means an additional £60 per month for homeowners on their repayments for a £200,000 mortgage.

However, it’s not all bad news for homeowners, with mortgage rates currently falling and economists predicting that interest rates will peak between 4.25% and 4.5% later this year before stabilising, while previous forecasts of a two-year recession have been cut in half. The economy is now predicted to contract by 1%, rather than the previously forecast 2.9%, bringing some much-needed respite to homeowners and buyers.

Average Asking Prices Increase in February…by £14

Data released by property website Rightmove has revealed the smallest increase in February property prices since their records began in 2001.

According to their figures, the average asking price of a UK property rose by just £14 for the month to £362,452.

While the increase may be minuscule, it’s a positive sign for the housing market following five straight months of falls.

However, there’s still a way to go before the market can be considered anywhere near normal, as February is traditionally a much stronger month for price growth, as sellers look to get their properties on the market before the busy spring period.

Rents see Record Increase

Figures from the major property website Zoopla have revealed record-high rental increases over the past 12 months, with renters paying an average of £120 more per month than they were at the start of 2022.

Unsurprisingly, the biggest increase was in the capital, where rents have climbed 16.1% over the past year to an average of £1,976 per month – some £270 more per month than 12 months earlier.

Other major cities, including Manchester, Edinburgh and Cardiff, have all seen double-digit growth in their percentages too, while at the opposite end of the scale, Belfast has seen the smallest rise of the UK’s major cities, with an average increase of 6.7%, or £44 per month.

Purplebricks up for Sale

Struggling online estate agent Purplebricks has put itself up for sale after revealing its expected losses for the year and a drop in revenue expectations.

The one-time online giant is forecast to make losses of between £15m and £20m this year – a sharp spiral compared to its previous estimate of £10m.

On top of this, the company’s expected revenue has also been cut to between £60m and £65m – a drop of £7.5m on its previous estimate.

The online-only firm was one of the leading lights in the property market after forming in 2012, but its share price has fallen more than 98% from its peak in August 2017. Back then, shares were trading at 514.5p, but the current price is just 7.3p per share.

Mortgage Products on the Increase

The number of mortgage products available has risen to more than 4,000 – the first time mortgage products have gone above that figure since August 2022.

Fixed rates have also continued to decrease slightly, with buyers who can put down more than 40% on a property seeing rates dropping below 5%.

And it’s not just buyers with big deposits who are seeing the benefit. Even those borrowing 95% of their home’s value can secure a fixed rate of around 5.5% if they take out a five-year product as the mortgage market continues to stabilise.

Work From Home Driving Regional Price Growth

Working from home continues to drive up house sales in various parts of the country, with the West Country seeing a significant surge in buyer demand.

One town that’s proving particularly popular is Swindon, where 40% of buyers are coming from outside the area, according to property website Zoopla, with most relocating from London.

It’s not just the capital seeing an exodus of homeworkers. Bristol is another city which has seen mass departures to smaller towns nearby, with one estate agent in North Somerset reporting that 80% of properties in Weston-Super-Mare and the surrounding areas are sold to Bristolians.

The trend of homeworkers leaving cities and moving to more rural areas was most prevalent during the Covid pandemic, as people looked to find more for their money, but these latest figures are further evidence that the trend has continued long after normality has resumed.

For more local property news and updates and a more detailed overview of the Gloucestershire area, get in touch with TG Sales & Lettings. We are your local property experts. Call us on 01452 300822 or email rachel@tgres.co.uk.

The housing market remains uncertain heading into 2023, but there’s some optimism among homeowners and first-time buyers, particularly as one developer has launched an innovative new scheme. Read on to find out the latest.

House Prices See New Year Bounce Back

While house prices fell towards the end of 2022 (see below) and are expected to continue falling in 2023, there was at least some positive news to start the year for potential sellers!

Property portal, Rightmove, has reported the biggest New Year bounce since 2020, with average prices rising by 0.9% according to their data.

And while there’s usually an increase in demand in January, the figures still make for positive reading for sellers, as there’s been a surge in demand from potential buyers too. Rightmove has reported a 55% jump in the number of people contacting estate agents about homes listed on the site in the first two weeks of the year.

This is coupled with an increase in the number of homes entering the market, as the company has also reported that the 5th January was the third busiest day ever for homeowners asking estate agents to value their home.

House Prices Drop For Fourth Month in a Row 

High interest rates and the rising cost of living contributed to a fall in house prices for a fourth consecutive month in December. Figures released by major lender, Halifax, showed a 1.5% decrease in the average asking price, which now stands at £281,272.

However, while there’s traditionally a seasonal slowdown in December, the fall wasn’t as sharp as expected, and was lower than November’s drop of 2.4%.

On an annual basis, prices grew by 2% compared with December 2021, representing the slowest year-on-year growth since October 2019.

And while the market slowed significantly towards the end of 2022, average prices still remain way above pre-Covid levels, and so far the start of 2023 is looking similar to the starts of 2016, 2017 and 2018, although some forecasters are predicting a 10% drop in 2023.

Mortgage Approvals Drop to New Lows

Figures released by the Bank of England suggest that mortgage approval levels have fallen to their lowest level in two years.

Just over 46,000 mortgages were approved in November – a drop from October’s figure of 58,000, as would-be homebuyers have been increasingly put off by rising interest rates and cost of living pressures.

The slump is expected to continue as uncertainty takes hold of the market and the cost of living continues to be volatile.

Rents Rising at Fastest Rates on Record

Data from the Office for National Statistics (ONS) shows that rental rates increased by 4% on average in 2022 – the fastest rise since records began seven years ago.

A quarter of private tenants surveyed in December said their rent had risen in the previous six months, as many landlords have passed on the increases they’ve faced on their buy-to-let mortgage rates.

The ONS figures also showed that renters pay significantly more on their living costs than homeowners, with their weekly expenditure on housing accounting for 24% of their income – 8% higher than those with a mortgage.

New ‘Save To Buy’ scheme launched for first-time buyers

An innovative scheme by one leading home developer could pave the way for thousands of renters to get onto the property ladder.

The initiative, set up by new homes developer, Fairview, will see all of the money paid by tenants in rent be put towards the deposit for their home.

Under the scheme, rent is paid at a fixed cost for between six months and two years, but instead of going to a landlord, the money will be set aside until the renters have a big enough deposit to obtain a mortgage on the property.

At that point, they can go through the usual mortgage application process and buy the home they’ve been renting.

The scheme is currently running at two of Fairview’s developments – New Hayes in West London and Epping Gate in Loughton, Essex. However, it’s expected to be rolled out to a number of other developments over the next few months.

The scheme is open to anyone who is classed as a first-time buyer, and the only stipulation is that you must have a deposit equivalent to 1% of the property’s value when you first move in. This is handed over to the developer when you first exchange contracts, and from that point, 100% of your rent will go towards the deposit to buy the property.

There’s also an option to top up your monthly payments if you can, which means getting on to the property ladder sooner.

For more property news and updates and a more detailed overview of the Gloucestershire area, get in touch with TG Sales & Lettings. We are your local property experts. Call us on 01452 300822 or email rachel@tgres.co.uk.