As we approach the end of summer (sorry sun-lovers!) we’ve been reviewing the housing market reports and looking at our own data to see how it compares to give you a local market update for both sales and rentals across Preston and the surrounding areas.
There has been a lot of negative media reports over the last few weeks relating to the economy, with rising inflation and the increased cost of living being highlighted as a major concern as we head into the colder months. Much of the reporting on the housing market has been in a similar vein, with articles warning of a downturn in the property market along with cooling demand from buyers and a subsequent drop in house prices. Reading the reports you would be forgiven for thinking it was a very poor outlook indeed, but this is simply not what we are seeing in the local market and it’s also not quite what has been reported by Rightmove in their most recent House Price Index, released Monday 15th August.
Key points from the Rightmove House Price Index are:
- Nationally there has been a 1.3% drop in asking prices compared to the previous month but there remains an overall 8.2% annual increase in asking prices
- The 1.3% fall is usual for August during holiday season and is consistent with the average August drop for the past 10 years
- Buyer enquiries are still 20% higher than pre-Covid levels in 2019
- There are 40% fewer available properties on the market than at this time in 2019
So what does this mean? The property market is almost completely at the mercy of supply and demand, which is why we’re still seeing a strong market despite gloomy economic forecasting. Demand from buyers is still very high, while the supply of properties is significantly lower than pre-pandemic levels. The usual seasonal dip has happened during the summer holidays, while everyone enjoys the sunshine and jets off abroad for the first time in a few years, but there is no reason to suspect we won’t continue to see a strong market through the Autumn months.
What’s happening in the local market in Preston and the surrounding areas?
You’ll notice we are using 2019 as a benchmark for comparison as this is pre-Covid and represents a more “normal” property market. 2020 was mostly taken over by lockdowns and the property market being closed for business, while 2021 shows an unprecedented level of activity due to pent-up demand from the previous year coupled with the end of the stamp duty holiday.
| July 2019 | July 2022 | |
|---|---|---|
| New properties on the market | 14 | 34 |
| Viewings booked | 182 | 521 |
| Offers accepted | 12 | 26 |
| Buyers registered with us | 147 | 351 |
As you can see, we are experiencing more than double the levels of activity we were working with in 2019, which is fantastic news for our clients as it shows the market is still extremely strong in the local area. This is supported by the regional trends from the Rightmove House Price Index, showing the North West has actually seen a 0.4% increase in asking prices this month with an overall annual increase of 10%. Properties are also selling quickly, with an average time to sell of 32 days.
Rental market update
The local rental market continues to be extremely busy across Preston and the surrounding areas with a huge amount of demand from tenants when new properties come to the market. Tenant demand is up 6% compared with last year and the number of available properties is down 26% compared with the same period last year. This tight supply of properties is contributing to record rent levels across the country, with the North West showing an 11.5% year on year increase in rental asking prices. At Roberts & Co we are seeing high demand for properties at all levels of the market, with a particular shortage of family homes.
As ever in a fast-moving market, whether you are selling or renting a property, it’s important to work with an agent who understands your needs and how best to tailor that to the local market to ensure you get the best possible result. If you are thinking of selling or renting we’d love to discuss it further to see how we can help you – please call 01772 746100 for free, no-obligation advice.