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Local mortgage and property market snapshot - Feb 23

ended 28. February 2023

On the first day of each month from now on, we'll be issuing a snapshot of the local property market to your local media outlets (print, online, radio and TV). It's your chance, whether you're an estate agent or broker, to talk about the trends you have seen in the previous month. Please answer any or all of the questions below for February. We will issue your responses first thing Wednesday (1st March).

  • How was demand for residential property in your area in February?
  • How have prices fared in your town/city/area in Feb? Holding up? Under pressure?
  • Are sellers being more realistic when it comes to asking price?
  • Has the likelihood of the base rate being near its peak lifted buyer confidence?
  • As the fallout from the mini-Budget dissipates, are you seeing a degree of normality resume in your area?

8 responses from the Newspage community

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Editor
Rohit Kohli
Director at The Mortgage Stop
Overall demand for residential property in our area is robust, whilst lower than this time last year it is in line with pre-pandemic levels. Clients are patient & not in as much of a rush. They are also no longer offering significant amounts over the asking price, and properties are taking a couple of weeks to sell rather than days, much more in line with the norm. Prices haven’t reduced too much, but there is certainly less overpaying. Some sellers are not being realistic about the asking price but expect their onward purchase to be lower in price. Despite nervousness about base rates, buyer confidence is being lifted, and we are seeing more enquiries for residential purchases. Property investors remain nervous with mortgage rates and lower affordability from lenders preventing their numbers from stacking up.
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Samuel Mather-Holgate
Independent Financial Adviser at Mather and Murray Financial
With confidence in the market low and sliding further, both supply and demand for properties in Swindon is low and this can be seen in the number of new listings on portals like Rightmove. There were only 23 properties added to Rightmove yesterday but a similar number of prides reduced, this is a sure sign of a declining market and it shouldn’t surprise anyone if prices crash a further 10% this year. The good news is that lots of new builds are still going up around the town, and there will be deals to be had for those wanting to get on the housing ladder come the summer when prices have stabilised.
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Louis Mason
Content and Communications Director at Oportfolio Mortgages
Demand for property in our local area of Putney in South West London was very strong in February, specifically from first-time buyers. Which was a nice surprise.
Prices have weathered the storm in our area. There are very few properties reducing their asking price, and the higher-value homes are still selling.
For the more mid-priced properties, I think that sellers have realised that the appetite for purchasing isn't as strong as it once was so are being more realistic with their asking prices. They do remain strong, however.
The base rate possibly reaching its peak has instilled confidence in borrowers. People are realising that things are going to get better.
We love to see normality returning to the industry, day by day. Lenders are reducing rates regularly and buy-to-lets are returning to the market.
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Elliott Benson
Owner at Sett Mortgages
Demand for residential property for us seemed like a normal February pre-Covid. We had an increase in purchase mortgage applications on last year, which shows there is still lots of movement and reality is returning after the mini-Budget. Some of the more highly sought-after areas of Leeds are still seeing offers over asking and best and final deadlines, however this has decreased on last year with property sales in general becoming a negotiation as opposed to an auction. Sellers are now more realistic about the price they are likely to achieve. More news of fixed rates falling despite the base rate rising has increased buyer confidence slightly, although a lot of people are still under the impression that every time the base rate increases, their fixed deal is going to get worse when in fact it is variable rates being hit.
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Alastair Hoyne
CEO, Finanze Capital at Finanze Capital
Demand for residential property does not seem to have dropped at all, I would say if anything it has increased with buyers being very motivated throughout February . Prices seem to be holding up, although statistically house process are dropping I have not seen this personally with still a lot of competition for properties, especially those in the mid region of £150k £250k. Sellers I think are being more realistic to what they were around 8 months ago knowing now they are not likely to get overs 15% over the asking price which was the norm last summer. The confidence clients have received from the base rate being ‘almost at its peak’ has been phenomenal. Buyers and professionals in the property market are viewing things more positively now. I had seen a lot of landlord temporarily stop looking but they are back to it now.
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Jamie Lennox
Director at Dimora Mortgages
Though the local property market in Norwich is facing some strong headwinds, as shown in the Nationwide February house price data, we're finding that demand is steadily increasing as buyers know they are in the driving seat. We are also seeing strong levels of housing stock coming onto the market. How fast these properties sell, of course, will come down to how much time estate agents take to educate sellers on current market conditions, with achievable prices down relative to a year ago. One thing that will stall transaction levels is if some estate agents continue to overvalue property in the hope of winning a listing.
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Nick Harris
Co-founder at Quarters
It's like we've turned back time, to 2019 with the market mirroring pre-pandemic activity and, while we're officially in a buyers market, activity is certainly more balanced than the peak and trough of '22. Locally, achieved selling prices are holding up with a c 5% reduction in advertised asking prices. Sellers are largely realistic when it comes to asking prices although there is still a gap between sellers and buyers expectations. And with the base rate reportedly being near its peak buyer confidence is returning, albeit with different affordability factors in play. As time passes since the fallout from the mini-Budget we're seeing a degree of normality, along with the usual pre-pandemic seasonality, return.
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Paul Neal
Mortgages & Equity Release Advisor at First Choice Financial Services
The market still busy at the moment and we’re still getting lots of enquiries for people wanting to purchase around Derbyshire. However it does seem like there’s a shortage of stock with not many new properties coming onto the market at the moment. Pricing still remains high. However, things are starting to catch up.