Spring is often considered one of the busiest times for the housing market. Emerging from the gloom of winter, prospective buyers and renters are ready to make their move while sellers and landlords can make the most of the sunny weather to showcase their properties in the best possible light.
Whether you’re buying, selling, renting or letting, it’s important to be aware of the market and trends so you can get the best deal. Here, we provide an update on what’s happened so far this year so you can proceed on your housing journey with a spring in your step.
What hasn’t changed?
Interest rates are still being held at 5.25%. The static base rate, although high, has brought stability to the market but buyers and sellers are hoping that cuts down the line might prompt lenders to offer more attractive mortgages for purchases and remortgaging. Forecasts are predicting that the base rate could be cut as soon as the summer.
Since the end of lockdown, we have seen property rents in the private sector rise and this is set to continue into spring. The latest data from the ONS has revealed that the average private rent price increased by 9% in Wales in the 12 months to February, with Cardiff’s average monthly prices ranging from £780 for a one bed property to £1424 for a property with more than four bedrooms. We expect rent prices to continue to increase at a steady pace until the imbalance between supply and demand is resolved.
What’s new?
It’s all change in the world of politics. A general election is expected in the autumn and Wales’ new first minister Vaughan Gething has appointed his cabinet, with former climate change minister Julie James MS taking on the housing brief.
Propertymark, the professional body for agents, has called upon the new first minister to boost the supply of private rented sector properties through measures including rejecting rent controls, reducing Land Transaction Tax for additional properties, and pausing further legislation to allow agents and landlords to understand and ensure compliance of the Renting Homes Wales Act. Rent control measures were proposed in a green paper consultation last year and if actioned, could lead to a further rent surge if landlords sell and reduce the number of available properties.
What price can I expect my house to sell for?
In the 12 months to January, house prices decreased by 0.6% and the average house price in Wales is now £213,000. Early-bird buyers have been setting the scene for a good spring for sales, as Rightmove reports that agreed sales in the first six weeks of this year were 16% higher than the same period last year.
It is still very much a buyer’s market and we expect the market to continue to favour buyers this year. Sellers can capitalise on this by setting an accurate asking price. While agreed sale prices are generally lower than the asking price, research by Rightmove suggests that sellers who price correctly are more likely to see their property get snapped up quickly by buyers. Overpriced properties are destined to sit on the market for longer, despite the benefits selling in spring can bring.
At Thomas H Wood, we are tuned into changes and trends in the market to provide high quality advice to buyers, sellers and renters in Whitchurch, Radyr and the wider Cardiff area. With our help, you can find the right property at the right time. Call us on 02920 626252 or visit https://thomashwood.com/.