East Sussex coast, Wareham in Dorset and Clapham in London
Each month we visit three agents across the country to discover what is happening in their local market. This month we meet members of The Guild of Property Professionals in East Sussex coast, Wareham in Dorset and Clapham in London
EAST SUSSEX COAST
JOHN BRAY
Colin Darbyshire
Sales and Marketing Manager
Having experienced a booming property market in 2021, fuelled by the stamp duty holiday, 2022 has continued in that vein up until now. The market is experiencing some volatility and change as a direct result of conflict, interest rate rises and the cost of living. There are other factors at play, which we see being both a sales and lettings agent. Average rents have increased significantly due to limited stock, up 9.5 per cent compared to last year, which is in part a result of the diminishing benefits and increasing demands on landlords. Landlords are selling more properties as a result combined with a strong sales market.
Regionally in the Hastings, St Leonards and Bexhill postcodes, the average annual rate of price change is 16.9 per cent, based on our latest Guild Regional Dataloft Report, with many properties experiencing much higher. Our numbers are showing an increase in available stock so far this month, which suggests vendors looking to capitalise on a strong market before we experience a change in the market. However, increased stock means greater buyer choice and therefore switching the market in the favour of buyers. This will have an impact on sale prices. Right now, the number of weekly property listings are up and down, but May experienced the second busiest week for numbers of new listings.
Continuing strong demand
We have yet to see how the rest of the year will play out, but right now, Hastings and surrounding areas continue to see strong demand, with families continuing to buy into the area. We feel this will continue over following six months and through the summer further pushing sale prices, but at a more conservative rate, plateauing as we hit autumn.
The cost of living, interest rates, tightened mortgage requirements and global economics will ultimately hit the property market. Borrowing however, is still cheaper than it was five years ago, so for the fortunate, the ability to sell a two-bedroom flat in London and be able to purchase a three or four-bedroom house for the same kind of money and be able to cut commuting costs by working at home is a bonus. Moving into the Autumn, as market conditions change, vendors will need to carefully consider their choice of estate agent more carefully in terms of end-to-end service levels, quality of marketing and compliance.
Featured property: Elphinstone Road, Hastings OIEO £490,000
CLAPHAM, LONDON
ORLAND REID
Tom Butler
Sales Manager
The Clapham property market began very buoyantly in 2022, with Covid restrictions ending and people returning to the office this was creating more confidence in the market and like with the stamp duty holiday of last year, was encouraging people to move.
The house market has been especially busy, back to pre-Brexit 2016, with houses going on the market and selling within a matter of days, normally at significantly over guide prices. This obviously led to a rise in prices around the Clapham and surrounding areas with buyers vying for their ideal home and houses selling for as much as 10% higher in May then they were at the start of the year.
Flats have also been selling well with many first-time buyers keen to get on the property ladder. Garden flats have generally seen increases by around 5% this year, especially ones that have been extended to create open plan living at the rear of the property leading onto the garden. Flats lacking outside space, however, are still struggling since Covid. These have continued to have price reductions to attract buyers and only if competitively priced are selling at similar, if not lower values than last year. This has especially been the case with the larger split level period flats that have no outside space, normally around 800/1000 sq. Ft. They are competing with garden flats, which although slightly smaller, have the sought-after outside space.
Slow-down of the market evident
With rising interest rates and the global uncertainties, we are now seeing a slow-down of the market and prices tailing off slightly. There have been a handful of houses that have been agreed at above asking, which are now being down valued on survey. These are now going back on the market and achieving lower prices.
However, I don’t foresee much of a drop in the property market. Although interest rates are rising, they are still much lower than they were in the past. There is still a drive to move after the pandemic when many people’s moves were put on hold for two years. The Clapham market always rallies, and I always advise it is a great place to invest and live.
While the total number of buyers registered on our database remains higher than in January (up 36 per cent), we believe this is the start of a return to a more ‘normal market’, in which there is a more equal balance between supply and demand. This shows that there is an increase in the number of listings offering more choice for buyers.
Viewings per property reducing
Website traffic remains as active. In fact, we have seen growth in the number of hits to each of our available properties. However, there are clearly other things now available for people to do, as the world has opened up from Covid restrictions. The number of viewings per property has reduced in the last month – albeit consistent with previous years, in which we would describe the market as more stable.
Holiday lettings
Interestingly, 55 per cent of recent new-buyer enquiries have come with a desire to own a home with flexibility and the option to earn a passive income through holiday lettings. Our pocket of Dorset is a haven for holidaymakers and buyers realise that stretching their borrowing-power to afford an annex, land or outbuilding for example, will more than pay for any additional mortgage repayments. This is a new phenomenon and something we haven’t seen with such prevalence in previous years.
All-in-all, estate agents are now having to work a little harder with their sales and marketing strategies, which is something we are good at. Properties are selling in a more normal time frame now, and agents that go above and beyond to attract the best buyers are standing out from the competition.
Featured property: Corfe Castle – Offers over £625,000
WAREHAM, DORSET
DOMVS ESTATE AGENCY
Alison Owens
Associate Director
While the total number of buyers registered on our database remains higher than in January (up 36 per cent), we believe this is the start of a return to a more ‘normal market’, in which there is a more equal balance between supply and demand. This shows that there is an increase in the number of listings offering more choice for buyers.
Viewings per property reducing
Website traffic remains as active. In fact, we have seen growth in the number of hits to each of our available properties. However, there are clearly other things now available for people to do, as the world has opened up from Covid restrictions. The number of viewings per property has reduced in the last month – albeit consistent with previous years, in which we would describe the market as more stable.
Holiday lettings
Interestingly, 55 per cent of recent new-buyer enquiries have come with a desire to own a home with flexibility and the option to earn a passive income through holiday lettings. Our pocket of Dorset is a haven for holidaymakers and buyers realise that stretching their borrowing-power to afford an annex, land or outbuilding for example, will more than pay for any additional mortgage repayments. This is a new phenomenon and something we haven’t seen with such prevalence in previous years.
All-in-all, estate agents are now having to work a little harder with their sales and marketing strategies, which is something we are good at. Properties are selling in a more normal time frame now, and agents that go above and beyond to attract the best buyers are standing out from the competition.
Featured property: Corfe Castle – Offers over £625,000
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