Although it may not feel like it on account of the weather we’ve been having, summer is most definitely upon us. Students’ exams are almost over, the Cricket World Cup is in full swing, and the summer solstice was last Friday.
Summer has traditionally been seen as the best time of year to be in the property market, and it definitely feels as though that will be the case again in 2019.
Rightmove’s data shows that in the last five years, properties listed in June took an average of 59 days to sell – faster than any other month. This June, we’ve been finding that many of our properties are going under offer much more quickly than this – we’ve sold apartments in Julius Court, Lighterage Court and a house on Roxborough Avenue within days of marketing.
We’ve also noted that prices have been rising. This month, we have achieved post-Brexit record prices in the Brentford Lock West and Brentford Dock developments – indicating that confidence is returning to the market.
Demand has risen as buyers look to take advantage of favourable economic conditions. Wage growth in the three months to April was 3.4%, outstripping not only the rate of inflation but also the expectations of the Office for National Statistics (ONS).
This spike in demand has been particularly pronounced among first-time buyers. More and more people have recognised that getting onto the property ladder is at its most affordable in a decade, and as a result 27% of properties sold in April were bought by first-time buyers.
The major news in the lettings market this month has been the introduction of the Tenant Fees Act 2019. This legislation is designed to make renting easier and more transparent for tenants, and you can read more about how it will affect the process of renting a property here.
Given that the legislation has made renting a property cheaper for tenants, it is unsurprising that demand for rental property has increased again in June – for the sixth consecutive month. Many tenants who were looking to move in the previous months have delayed their search to June in order to benefit from the Act and are now on the market.
This boost in demand has widened the gap between the supply demand for rental property, and has caused rents to continue to rise. In the year to May, rents have risen by an average of 1.3%, which represents the largest annual growth in 18 months.
This disparity is showing no signs of being addressed, as there were just 5,000 new buy-to-let mortgages issued in March – almost 10% fewer than the same time last year. Landlords who are able to bring their property to the market this summer will benefit from reduced competition from other properties and therefore higher demand from prospective tenants.
Landlords and tenants will both benefit from another exciting development this month, as Thorgills are now able to offer a same-day referencing process through our partners at Let Alliance. This system will make it quicker and easier for references to be taken, meaning that our tenants can move into our landlords’ properties faster than ever. No other agent in West London can offer this service, so if you would like to benefit from it, contact us today.
|This is part of our series of Market Updates. You can read the other 2019 updates here:||January - February - March - April - May|