Guildford Property Market update - February 2020

It appears that the prospects for an upturn in activity in the property market have been realised since the result of the General Election was announced, according to data from activity on the Rightmove portal over the last month.

The UK Market

According to the latest Rightmove Price Index report there has been an increase of 2.3% in the price of property coming to market this past month; and over 1.3 million buyer enquiries since election, which is up by 15% compared to the same period a year ago, to suggest there will be an active spring market ahead. There has also been an increase of 7.4% growth in the number of sales agreed this past month as sellers have acted quickly to beat the Spring rush.

Furthermore there were almost 65,000 properties marketed between the 8th December and the 11th January, which is the largest monthly rise that Rightmove have ever recorded at this time of year. This suggests therefore that these new sellers are feeling a surge of optimism. The number of enquiries made to estate agents were also up by 15%, compared to the same period last year, to suggest demand was on the increase. This then led to a 7.4% increase in the number of sales agreed over the same period.

Whether this is a sign of the pent up demand being released will remain to be seen over forthcoming months but it does appear that some sellers have moved quickly as was anticipated over the Christmas and New Year period.

The Guildford Market

There were 23 additional properties added in the last 14 days mainly replacing those taken off towards the end of last year so have been relisted, and in some cases with a new agent in the expectation that they will have more success. Overall stock levels therefore remain constant although there do appear to be more detached properties currently for sale. The average asking price for this type of property has marginally increased too.

The number of properties taken off market having been listed for between between 2 and 4 months might suggest that a number of offers were accepted towards the run up to the end of 2019. Alternatively this might also confirm the point above that vendors decided to de-list and then relist after the news regarding the General Election and the start of a New Year.

The average time taken to sell properties in Guildford over the last 90 days remains at 154 days, with half of the sales taking place within 78 days.

According to the latest data from Land Registry (available up until November 2019) approximately the same number of properties sold at a slightly higher average price of £498,595 in Guildford due to more detached properties being sold in the last month.

Having talked with local residents there does seem to be greater confidence in the market about the prospects for selling their property in the short term though one overriding comment made was that they feared how the growth of Guildford property prices in recent years will challenge those wanting to get onto the property ladder or to upsize. Having said this, many residents are sitting comfortably having decided to stay in their homes for the long term and experienced wealth that they could never have forecast at the time they purchased their home.

See you again soon for next month's property update to discover whether this initial feeling of optimism, that the New Year and the release of some of the pent up demand have brought, will be realised with a growth in property sales over the forthcoming months.

To request a copy of the latest Rightmove Price Index report featured in this update, please call 01483 320207 or text 07786 965631. Always happy to have a chat about the local property market too.

Dreaming of your first home

If you are in your twenties, or possibly thirties, or you have children of this age then you are probably giving considerable thought to the idea of buying a home for first time buyers. Hopefully you have reached the stage where you are settled in your work and have been saving up for a deposit to consider affording a home.

Whether you are wanting to extricate yourself from your parents house or are tired of renting and paying off someone else's mortgage, especially if you are sharing with others, it's hard not to dream about finding a property to call your own.

The next thought you probably have is will this be possible in Surrey, especially as it has a reputation for property prices that might not be affordable? If you've searched online it can be depressing looking through the many million pound houses for sale around Surrey but as a first-time buyer you're certainly not alone in that respect.

First-time buyers made up more than a third (36%) of all property purchases in 2018, according to Zoopla. These numbers are up by 85%, from 2010.

So, how does Surrey hold up against the national average of a first-time buyer home?

Typical asking prices in Surrey

The national average price for a first-time buyer home purchase is £220,000 so, of course, you would expect to pay more in Surrey. However, if you manage to set your expectations at a realistic level by looking to buy a starter property like a studio or one bed flat, research suggests that studio apartments can be found for as little as £100,000, in Sunbury-on-Thames and Farnham.

More realistically, the average asking price for a one bedroom flat in Surrey, is currently around the £200,000 though this is likely to be located in less desirable areas of the county.

If your desire is to live in Guildford, a studio flat can be found for as little as £150,000 with the average asking price for a one bed flat at around £265,000, only a little higher than the national average.

The facts

Thirty-three is the typical average age of a first-time buyer in the UK, according to the Government’s most recent English Housing Survey (2017/18).

Twenty-nine is the current average number of years for a first-time buyer mortgage term and therefore four years more than the more traditional 25 years recorded just a decade ago.

The average earnings for those living in Guildford is £26,481 so the price earnings figure for those wanting to afford a flat for £265,000 will be 10 times. This is a useful calculation to make when comparing the affordability of one area with another.

Opportunities to reduce your purchase price

There will be instances where a property may be reduced in price because it is not selling (for whatever reason) or where there is work, or modernisation required, so the price can be negotiated downwards to allow a contribution towards the building costs.

There may be the opportunity to purchase a property at a lower price through an auction; or even from the local council, if it is empty and has no proven owner.

However these properties are unlikely to be mortgageable so may need a substantial cash input. In these instances it is always wise to consult with a mortgage broker experienced in funding investment properties.

While Surrey property does cost more doing one's research should unearth more affordable properties. If a first time buyer does manage to get onto the first rung of the property ladder they will potentially realise a capital gain over future years, and if so, this equity will gradually allow them to upscale so you never know, they may even be able to afford the home of their dreams one day to prove that dreams really can come true.