NAEA and ARLA Propertymark reveal their property trends for 2018

NAEA and ARLA Propertymark reveal their property trends for 2018

As 2017 draws to a close, NAEA and ARLA Propertymark have analysed their sales and lettings data to reveal trends and expectations for 2018.

According to data from NAEA Propertymark, during 2017, demand spiked in January and February at 425 house-buyers registered per branch. Demand was higher this year than in 2016, with an average of 380 prospective buyers registered per branch, compared to 365 on average over the course of last year.

Supply of housing peaked in February with 44 properties available to buy per branch. Year on year, supply has not shifted, averaging at 39 properties available per branch in 2016 and 2017.

February and June saw the highest number of sales agreed, with an average of 11 per branch. In 2016, the number of sales agreed peaked in March, with 10 per branch. On average, the number of sales agreed was up in 2017 – with an average of nine per branch every month, compared to eight in 2016.

The proportion of total sales made to first-time buyers (FTBs) on average over the year hit the lowest seen since 2013.

2013

23.7%

2014

25.6%

2015

25.4%

2016

28%

2017

25%


In 2017, properties were sold for less than asking price on average 77 per cent of the time – only four per cent were sold for more than the original asking price.

Mark Hayward, Chief Executive, NAEA Propertymark comments on the findings: “2017 has been a busy year for the property market, and the Budget announcement to abolish stamp duty for FTBs has given them some optimism. This year saw an average of 25 per cent of sales to FTBs, the lowest in four years. Looking to next year it will be interesting to see what impact the stamp duty change had on the market, and if it really does help FTBs get on the ladder. We still only have a limited supply of housing available and policymakers need to think about how to help others in the chain, such as second steppers and those that would downsize in order to free up more larger homes suitable for families.”

ARLA Propertymark’s overview of the private rented sector:

Supply of rental properties were at their highest in January, when it stood at 193. On average in 2016, the number of properties available per branch was 180, compared to 188 from January – October 2017.

This year, the number of buy-to-let (BTL) landlords selling their properties peaked in March and April when agents reported a 33 per cent spike in the number of landlords selling up

In August, the number of tenants experiencing rent hikes peaked at 35 per cent, before falling to 27 per cent in September. Rents for tenants were least likely to increase in October (22 per cent) but overall in 2017, 27 per cent of tenants had their rents increased compared to 26 per cent in 2016

Tenants were the most successful at negotiating rent reductions in March (3.6 per cent). In 2016, the most successful month for rent reductions was December when 3.1 per cent successfully negotiated

On average, properties were viewed more times before being let in 2017, than 2016. In 2016, letting agents typically hosted five viewings per property, which rose to six in 2017.

David Cox, Chief Executive, ARLA Propertymark comments on the findings: “It was always going to be an interesting year, following the announcement of the letting agent fee ban in last November’s Autumn Statement. I think we’re starting to see a consolidation of some agencies in the industry as the fee ban looms, which could explain why the number of properties under management has increased. Landlords are becoming more selective about their property investments in light of last year’s Stamp Duty Land Tax (SDLT) changes.

Mortgage Interest Relief (MIR) is starting to bite which is why we saw an increased number of landlords selling up. It’s likely that as we move into 2018, tenants will continue to see rent increases as supply starts to reduce, demand continues apace, and legislative changes increase costs for landlords.”

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Latest Comments

Tony Gimple
Tony Gimple 09 Dec 2017

Linking professionalism to limited company borrowing is a flawed concept. Despite S24 etc., limited companies are the most tax inefficient way of running a property business and leave borrowers seriously...

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Evelyn Attwood
Evelyn Attwood 01 Dec 2017

It's normal. If you plan to buy a house in one of the most beautiful spots in the country you should pay a high price.

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Evelyn Attwood
Evelyn Attwood 01 Dec 2017

I think that the situation will be the same at December.

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Scott Garnet
Scott Garnet 06 Nov 2017

If you have a patio or a porch it is important to make sure that any connecting doors are secured. Good advice for sliding glass doors is replacing the panels with storm resistant glass and getting heavier...

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richardrawlings
richardrawlings 01 Nov 2017

What has not been mentioned here is the effect of not only higher interest payments, but also that these payments are less likely to be offsettable as a business cost due to the scaling back of mortgage...

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Kelvin Lloyd
Kelvin Lloyd 09 Oct 2017

IT is up, to the Planners. If they will only give permission for bungalows on certain (suitable) sites, they will be built.

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maggie swift
maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

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maggie swift
maggie swift 09 Oct 2017

I have recently read that the bungalows can provide social housing for elderly residents in London.

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zoe glover
zoe glover 05 Oct 2017

Update! Worst company I have ever dealt with. Undervalued a Cambridge property by over 100k, wont take on any evidence of valuation including a RICS valuation done 3 years ago for the very same value...

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Paul Edwards
Paul Edwards 27 Sep 2017

Its nonsense articles such as this that make it harder to get clients to realise just how difficult the market is out there. When you see Rightmove and there are more 'price reduced' then 'new' most days...

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Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

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RyanGeo
RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

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