A surge of larger homes has hit the market in the last week amid falling mortgage rates, according to Rightmove. Annabel Dixon delves into the details.
The summer holidays are over and it’s back to reality. The good news for buyers with deeper pockets is that ‘a surge’ of larger properties has just come to the market, fuelled by falling mortgage rates and speculation about a capital gains tax rise.
According to Rightmove, the number of top-of-the-ladder homes being listed for sale in the last week is 15% higher than the same time last year. Before this jump, activity was driven by smaller properties of two bedrooms or less being put up for sale.
The spike is most noticeable in the east of England. The number of larger homes (defined as four-bedroom detached houses and homes with five bedrooms or more) hitting the market in this region is 21% ahead of the same week last year.
The south west of England follows closely behind, with 20% more top-end homes coming to market compared with a year ago. Both regions are home to some of the nation’s most sought-after coastal and beauty spots.
Rightmove’s property expert, Tim Bannister, explains: ‘Some of the lowest mortgage rates since before the mini-Budget are now available for those with a large deposit, and a mooted increase in Capital Gains Tax (CGT) is also likely to be contributing to decision making right now.’
Jonathan Harington, director at Haringtons UK, says: ‘It is surprising to see reports that there has been a surge of larger homes coming onto the market. It is certainly not my experience although at the very top end there is an awful lot unsold this year. There won’t be any sort of rush until buyers see what is in the Autumn Budget.’
He adds: ‘Although, as ever, ‘the market’ is a rather vague term, with a myriad of different dynamics playing out across various sectors and price points. An increase in CGT would undoubtedly discourage people from cashing out investments to fund property purchases. And the spectre of a wealth tax tied to property values will certainly give pause.’
Housing market ‘shows promise’ as prices start to rise
Could the housing market be turning a corner? We only ask because chartered surveyors at RICS have painted an improving picture of the housing market.
Buyer appetite and sales activity were on the rise last month, and house prices started to grow after almost two years of decline, says RICS. What’s more, the volume of appraisals in August suggests the number of new property listings will continue to increase.
RICS Chief Economist, Simon Rubinsohn, says: ‘The latest RICS survey captures an improvement in sentiment over the past month in the wake of the modest decline in mortgage rates with buyer interest improving, albeit from a relatively low base, and stock levels edging up.’
But he warns of the need for realistic pricing to get sales over the line, ‘with uncertainty both around the scope for further interest rate cuts and the likely contents of the forthcoming Budget keeping the mood in check’.
Housebuilding hotspots with ‘lowest level of NIMBYism’
Labour has made no secret of its housebuilding ambitions. And Lomond has given it a helping hand and revealed the ‘housing development hotspots with the lowest levels of NIMBYism’.
The estate and letting agency group analysed planning applications for both major and minor developments across England over the last 12 months to work out where the government is most likely to succeed.
The north east of England tops the table at a regional level, with 81% of all housing applications approved. Meanwhile, the east of England comes bottom, with 64% of applications given the go-ahead.
The City of London boasts the highest approval rate at a local authority level, with 100% of applications granted. But this is based on six decisions. Blackburn with Darwen follows, with 56 of the 57 planning decisions given the green light.
The best day of the year to move? Friday 13th
If you noticed a death or removals lorries last Friday, it’s no coincidence. Friday is normally the busiest day of the week for buyers collecting keys to their new home and popping open a bottle of fizz to celebrate, but Friday 13th is another matter. Rightmove data going back to 1996 shows that it’s the the quietest day of the year for house sales completions.
What does that mean? Well, if you’re one of those able to shrug off superstition you’ll find it much easier booking removals and all the other services you’d normally need. You might have a job persuading the rest of the people in the chain to get on board, of course, but even if they refuse to up sticks on the 13th, you can still save yourself a small fortune by buying moving into a house numbered 13, which on average are worth £5,521 less than average. Just don’t go complaining to us when the pipes burst a day after you move in.
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