Category: News

Bradley Start, a partner at Start & Co in the Cornish town of Newquay, says he’s getting requests for viewings within minutes of a property being listed on Rightmove, with many homes going to best and final offers – something he would normally see only rarely.

“The stock shortage is the worst I’ve seen in thirty years and there’s just seemingly endless demand” says Start.

“It’s a mix of locals moving, people buying holiday homes and those relocating completely, which is leading to more out-of-town buyers than we would normally see.

“Those who are choosing to relocate are, understandably, looking for a home right by the sea, which is pushing up demand even more for those homes with the all-coveted sea view.

“The lack of stock I think is mostly down to the fact that sellers are unsure that they will be able to find a replacement property to buy, but if more sellers decided to come to market this would help across the whole chain.”

It’s a similar story in some other parts of the country.

Simon Shepherd, branch manager of Ashtons in Newton-Le-Willows says: “The past year has just been crazy. First-time buyers are queuing up for starter homes, and many of those moving from starter homes are looking for four bed detached homes which are few and far between. When one comes up for sale it’s snapped up immediately, especially those that are within walking distance to the high street.

“Some people are selling up their smaller houses closer into Liverpool and moving out here as well, which has pushed up prices to an all-time high.

“Right now I’ve had to rip up the rule book because the demand means it’s hard to predict what a home is going to sell for, as in many cases we’re achieving over the asking price.”

Well over another third, 38 per cent, say they visit an office only “once or twice” during the transaction. Only nine per cent say they visit quite often during the process of purchasing.

There is only limited engagement with window displays too, according to this survey of 1,081 people who bought a home in the past six months.

Just six per cent say they discovered the home they eventually bought via the window of an estate agency branch, and only five per cent discovered it via a For Sale board.

A full 70 per cent say they found their eventual home online.

When asked by the survey – conducted for the PropTech platform WiggyWam – some 75 per cent of respondents claimed they would happily see the end of physical High Street branch offices if it meant agents had fewer overheads to cover and could, therefore, reduce fees to sellers.

The survey was conducted earlier this month and WiggyWam chief executive Silas J Lees says thanks to lockdown, recent buyers may have made unusually limited use of branches for in-person visits to agents.

“However, we also know that the entire high street retail sector was struggling before Covid and has been truly battered since. Even the biggest names in retail are retreating from physical operations” he adds.

“Yet, at the same time, some retailers are enjoying great high street success and, more often than not, they are those who have changed the strategic value of their physical retail units. It’s about time agents started doing the same, finding a way to create an in-branch experience that cannot be replicated online.

“To this end, multi-disciplinary branches are where the smart money is; agents, lawyers, surveyors, etc, all under one roof, all working together to create an efficient buying and selling process. Given how many law firms, for example, are likely to fold as a result of the pandemic, this kind of consolidation provides a genuine option for the future.”

The portal says 21 per cent of the available properties it lists are now chain-free, a jump from around 15 per cent this time last year.

This new trend is most acute in London, where 12 per cent of listed properties this time last year were chain free, whereas it’s 21 per cent today.

Rightmove’s director of property data Tim Bannister says: “We know that one of the reasons sellers are often hesitant to come to market is because they can’t find somewhere that they want to buy, but with record buyer demand and the stamp duty holiday being an added incentive for prospective buyers there seems to be a group of people who are choosing to sell up now and rent temporarily.

“Selling chain-free is perhaps something some owners hadn’t considered as a possibility before now, but with the competitive market and stock shortage we currently have they’re trying to put themselves in a more attractive position when their dream home comes along. In the capital there are also some landlords who are selling up now, which could open up an opportunity for some first-time buyers looking for their first home.”

The portal says that the strongest sellers’ market in a decade means that currently almost two out of three properties on an agents’ books are sold subject to contract. There are signs however that new listings have been starting to improve over the past few weeks.

Before the start of the holiday last summer, asking prices averaged £277,104 but buyers actually paid £248,102 – a 10.5 per cent difference.

But the rush to take advantage of the stamp duty exemption has seen buyers paying more and the gap reducing, to just 7.2 per cent.

And the market as a whole has ratcheted upwards: sold prices have averaged £261,325 since the introduction of the holiday, up 5.3 per cent when compared to the previous average of £248,102.

GetAgent, the comparison website which commissioned the research behind the figures, says the gap would have closed further had sellers not hiked asking prices by well over one per cent in recent months.

The site’s chief executive, Colby Short, says: “It’s inevitable that sellers will enter the market at a higher price than they’re likely to sell for and so sold prices are almost always going to come in at a lower average than asking prices.

“With more money in their pockets and more competition when trying to secure a home, buyers are paying that little bit more. Of course, this gap would be wider, but savvy sellers are also entering the market at a higher price point in order to make the most of these buoyant market conditions.”

The North West was the English region which saw the highest annual growth in average house prices, up a remarkable 12.0 per cent. The West Midlands was the lowest on 4.7 per cent.

Across the UK, the average property value in January was £249,000 which was down from a record high of £250,000 in December. However, the average house price in January was still £17,000 higher than in January 2020.

Nitesh Patel, strategic economist at Yorkshire Building Society, says: “The dash for space continues at pace as buyers snap up larger homes, adding upward pressure on prices.

“In the past year the price of detached homes has grown by 8.6 per cent compared to 2.6 per cent for flats – three times the rate.

“Since March 2020, the popularity of detached homes has grown, now accounting for 28 per cent of all home sales, up from 22 per cent. Flats now account for a smaller share at 12 per cent, down from 17 per cent over the period.

“We expect demand to stay at an elevated level relative to supply, and as a result adding further pressure on prices.”

“This was partly due to further lockdown restrictions and difficulties of overcoming the huge conveyancing backlog.”

One in 10 say they are going to employ two or more new members of staff.

Some 28 per cent of respondents to a new survey cite the stamp duty holiday extension as a key influence on their hiring decisions over the next year.

However, the vast majority believe that the government’s new 95 per cent guaranteed mortgage scheme will not have a significant effect on the market – and is thus not an influence on their long term staffing plans.

“Many agents are still finding their feet after the initial financial instability of lockdown and the average agent has around £100,000 in fees stuck in their pipeline due to the current market backlog. As a result, they may be hesitant to hire as they lack the immediate financial resources to do so” claims Silas J Lees, chief executive of WiggyWam, the PropTech platform behind the survey.

“It is an area that needs property consideration though as lack of effective new hires could lead to rising stress levels as they feel the burden of doing more work than humanly possible” he concludes.

The Daily Mail has run a story saying that a home security camera in a room in the property at Ramsgate, Kent, caught the two agents – from Wards – criticising the family’s living arrangements and questioning how many people slept in the same room.

One of the agents is reported to have said about the property: “You might as well knock it down.”

The vendor tells the newspaper: “I was disgusted, I just felt so low and worthless. I just didn’t expect anything like that … One of them said our house was disgusting. They felt the need to have a conversation about my family slagging us off in our home when they thought we weren’t looking. We trusted them with our home and they disrespected us.”

The newspaper quotes David Lench, group managing director of Wards’ agency owner Arun Estates, saying: “Since learning about this most regrettable incident at the weekend, Wards have been in close contact with the client and her sister who instructed Wards to market the property.

“We have apologised unreservedly for the inappropriate and unprofessional discussion that took place between two staff members at the property on Saturday.

“Both staff members are extremely sorry for the upset they have caused and are highly embarrassed by their conduct.

“Wards rigorously trains its staff to treat customers fairly and with respect at all times. We are disappointed that the behaviour of these staff members falls far below the standards for which Wards are known.”

He continues: “This is most regrettable as we have never previously experienced an incident of this kind and both staff members have had an unblemished record prior to this happening.

“Nevertheless, we completely agree with the client that this conversation should never have happened and fully appreciate the distress it has caused.

“We are taking the matter very seriously and will continue to work closely with the family to do everything possible to make amends. We will also be following our internal procedures with the staff involved and taking appropriate action.”

The Mail says the vendor has now dis-instructed Wards.

Rightmove says that currently the average time for a seller to find a buyer is 65 days nationally, and it takes a further 126 days to go through the legal process to completion.

“Based on this, sellers should be looking to come to market by Tuesday March 23 if they want to make sure their buyers can make use of the tapering end to the stamp duty holiday by the end of September” says the portal.

Wednesday of this week, when the Budget was held, was Rightmove’s busiest day ever with visits surpassing nine million for the first time.

The total was six per cent higher than on summer financial statement day on July 8 last year, when Chancellor Rishi Sunak declared the start of the stamp duty holiday.

This week it was the combination of the stamp duty holiday extension and the introduction of the 95 per cent mortgage scheme which appears to have propelled new buyers to Rightmove on Wednesday.

The number of enquiries the Budget triggered on to Rightmove and then on to estate agents was 82 per cent higher than on the same day in 2020.

Rightmove’s data analysts have also found that in 12 areas of the north, at least 99 per cent of properties are up for sale for £250,000 or less, compared to just five  of properties in London available for £250,000 or less.

A record was also hit on Wednesday in Rightmove’s commercial section, with over 145,000 visits from people looking for a new commercial space for their business.

Rightmove’s Director of Property Data Tim Bannister says: “It’s clear from our record-breaking traffic numbers that the Spring Budget has introduced buyers into the market who were not perhaps able to consider moving until now or who were waiting to hear what was going to happen to stamp duty.

“The stamp duty holiday extension, coupled with the introduction of five per cent deposits, has given many people the certainty they have been looking for to press ahead with their home-moving plans. We expect this to help spring market activity and could encourage more sellers to come to market especially in the areas where property prices are lower.

“Many people who may have been delaying a move for a whole multitude of reasons now have the impetus and encouragement to take their next life step – whether it’s getting a foot on the property ladder as a first-time buyer or trading up for more space and a bigger garden.”