Is It A Southampton Buyers’ Or Sellers’ Property Market?

  Navigating the property market in Southampton? Understanding the current market dynamics is essential whether you’re looking to buy a dream home or sell a cherished property. Recent data reveals a fascinating surge in property transactions across the UK, with Southampton included in all this bustling activity.

As of April 2024, property sales and listings have increased significantly, indicating a robust market. Yet, what does this mean for you? Is Southampton a buyers’ market, favouring those looking to purchase, or a sellers’ market, giving an edge to those wishing to sell?

This article delves into the latest figures and trends, offering crucial insights and strategic advice for prospective buyers and sellers in Southampton. Read on to discover the opportunities in this dynamic property landscape and how you can best navigate it to your advantage.

Up to Sunday, 21st April 2024, the number of UK homes that went under offer (sold STC) was 10.3% higher than during the same period in 2023.

(377,217 home sales agreed on YTD in 2024 compared to 341,271 YTD in 2023)

Even more interesting when we compare the average of 2017/18/19 year to date (YTD) sales agreed figure of 351,027.

Every UK region has seen an increase in the number of properties selling (subject to contract). Yet what is more interesting is that the different regions of the UK property market have shown a remarkable uniformity in growth across the country for the YTD in 2024, signalling robust health and widespread confidence.  

Leading the charge, Inner London showcased a stellar rise of 21.09%, closely followed by Outer London at 20.47%, reinforcing the enduring appeal of the capital. East Anglia and the South East were not far behind, registering impressive gains of 19.65% and 19.48%, respectively, underscoring the continuous attractiveness of the South East. The Midlands, both East and West, also enjoyed substantial growth at 18.20% and 18.02%, indicating a resilient market presence. Up North, the North West at 17.70% and Yorkshire & Humber at 17.27% demonstrated significant upward movement, whilst the South West advanced with a respectable 16.11% increase.

The North East, Wales, Scotland, and Ulster presented growth figures of 14.74%, 14.00%, 12.43%, and 12.38%, respectively, suggesting a balanced expansion across the entire UK. Although most pronounced in London and the South East, the growth spectrum exhibits a promising scenario for the UK property sector, with the narrow gap between the highest and lowest growth regions illustrating a cohesive national uptrend.

In addition to increased property sales, the supply of UK properties on the market in April 2024 was 11.8% higher than in April 2023.

(654,913 properties for sale in April 2024 versus 585,741 for sale in April 2023)

This increase in the number of properties for sale is good news, as it gives buyers greater choice.

Even if you sell your property, there’s no guarantee that it will go through to exchange of contracts and completion. Thankfully, 2024 sale fall-throughs are at 22.5% of gross sales YTD, which is much lower than the 7-year average of 24.3%.

Net sales (house sales agreed less sale fall throughs) paint an even better picture, with a rise of 12.6% year on year.

(295,912 net sales YTD 21st April 2024 vs 262,871 net sales YTD 21st April 2023)

Prospective purchasers and vendors are witnessing a rise in confidence as mortgage rates, after climbing sharply last year, have begun to decline recently. Inflation stands at 3.8%, a steep fall from the 9.6% high of October 2022. Furthermore, average mortgage rates have settled, with many banks and building societies now offering decent rates. For example, at the time of writing, Nat West was offering a 5-year fixed rate of 4.37% for those with a 30% deposit, Virgin Money a 5-year fixed rate of 4.69% with a 10% deposit and the Leeds Building Society a 5.14% 5-years fixed for those with a 5% deposit.

Despite these positive signs, Southampton house price levels are expected to hold steady, with the market remaining buyer-friendly due to mortgage affordability issues.

The easing of mortgage costs (compared to the summer of 2023) has undoubtedly sparked renewed interest and dealings in the property market, particularly after a lull period in the second half of last year, when many considering a move put their plans on hold. This revitalisation is anticipated to boost the volume of homes sold, which had dipped to an 11-year low of just over one million in 2023.

Nevertheless, it’s unlikely this momentum will cause a marked rise in house prices in 2024, with the market maintaining a delicate equilibrium, in contrast to 2021’s full-on extreme sellers’ market.

Southampton homeowners planning to sell in 2024 may be buoyed by this uptick in market activity; however, they should temper their expectations as buyers remain keen on value, which could dampen the current pace of recovery in the property market. Caution is also advised due to the traditional hesitance seen in the property market during a general election year, with buyers and sellers often taking a more conservative approach as the election looms.

This is the time to be realistic with your pricing if you’regoing to put your Southampton home on the market.

So, what sort of market are we in?

The measurement of whether it’s a buyers’, balanced, or sellers’ market is based on the proportion of properties marked as “Sold STC” and “Under Offer” compared with the total number of properties on the market. For example, if there are 43 properties sold STC and 100 properties available/for sale, then 43 as a percentage of 100 is 43%.

This isn’t just a numbers game; it’s a gauge of market sentiment:

• Extreme Buyers’ Market (0%-20%)
• Buyers’ Market (21%-29%)
• Balanced Market (30%-40%)
• Sellers’ Market (41%-49%)
• Hot Sellers’ Market (50%-59%)
• Extreme Sellers’ Market (60%+)

The weight of these brackets can’t be overstated. They directly impact everything from listing prices to negotiation leverage.

Current Southampton Property Market Snapshot

To calculate Southampton’s property market’s current status, let’s incorporate our most recent findings for April 2024. The numbers and statistics have been taken from the website ‘The Advisory’, which has calculated the market state for many years. I am sharing them from the summer of 2018 to April 2024.

• The Southampton postcode districts of SO14 to SO19 combined showed an extreme sellers’ market at 70% in the summer of 2022, which eased off towards the end of 2022.
• Throughout 2023, the Southampton property market was in the early to mid 50% range (a hot sellers’ market). As expected, because of the seasonal nature of the property market, by February 2024, this had reduced a little to 51%.
• Since February 2022, it has remained fairly steady and in April was at 52%. 

The Consequences And Thoughts For Southampton’s Property Market

This new data prompts me to take stock and ponder.

For Southampton sellers: We are transitioning into a market where sellers must be more strategic, flexible, and patient. It would help if you braced yourself for your home to be on the market for longer with an extended marketing period. Realistic pricing is even more vital than ever. Setting at the right price is crucial for attracting suitable buyers.

Why? Because your chances of selling your Southampton home have dropped in the last few years.

In the spring of 2022, 72.81% of Southampton homes that were on the market sold and completed. Since 1st January 2024, that figure has dropped to 55.69%.

Your marketing strategy is just as important. Employing tools such as video or virtual tours, targeted social media campaigns, or interactive property listings could be particularly beneficial in this more ‘normal’ market of 2024.

For Southampton buyers: Expect intense competition if you’re interested in highly sought-after types of properties. Securing mortgage pre-approval can put you ahead of other prospective buyers. Consider expanding your search area to discover potential deals that others may overlook. Conversely, in less competitive markets, Southampton buyers have more leverage to negotiate, from the offer price to inclusions like carpets, fixtures, and fittings. You will also have the luxury of choice and time with other homes.

Remember, four out of five sellers are also buyers, so what you may lose on the sale might be compensated for on the purchase.

External influences, such as global economic trends, inflation and interest rate repercussions, could all cast shadows on the Southampton property market. The election will undoubtedly affect the Southampton property market, as everything will go on ice in the three or four weeks before the election itself.

Final thoughts: As we progress into the fifth month of 2024, the Southampton property market presents challenges and opportunities for buyers and sellers. Understanding these market subtleties is crucial for anyone considering a move, from existing homeowners to seasoned buy-to-let investors, first-time buyers or those looking to relocate to Southampton.

Stay flexible, stay informed and remember that your home-moving experience is as much about the journey as the destination.

What are your thoughts on Southampton’s developing property market?

Do you anticipate any other shifts or trends in the Southampton property market? What are your local insights and experiences?

The Home Improvement Projects That Will Impress Southampton Buyers The Most

When it comes to home improvements, it’s wise to think carefully before you splash the cash.

Homes renovated to a high standard attract more buyer interest and sell more quickly.

However, not all refurbishment works will bring you the same rate of return.

Buyers tend to pay particular attention to the condition of specific areas of a property, so it’s best to invest your time and money in these places.

Here’s a guide to some of the best-value home improvement projects, including some tips for those on a budget.

Revamp The Kitchen

Many people consider the kitchen to be the heart of the home, a place to entertain and socialise, as well as cook.

If you can’t justify the cost of a full-scale refurbishment, consider making a few changes to update the space.

Replace or paint tired-looking cupboards and install new work surfaces if the existing ones are chipped or marked.

Also, update the lighting. Most designers recommend multiple light sources, such as recessed ceiling lights (for a warm, ambient glow) and pendant lights to illuminate key areas.

Freshen Up The Bathroom

Deciding whether to refit a bathroom or opt for a mini makeover will depend on its age and condition.

A grim bathroom in an otherwise well-presented home can drag down the price buyers are willing to pay.

If you decide to remodel the bathroom, plan meticulously and pay attention to details such as the height of shower heads and the layout of tiles. Once the builders start work, things move quickly, and it’s difficult to make changes.

Also, stick to neutral colours; most buyers want a calm, clean-looking retreat.

If you decide on a smaller-scale revamp, address mouldy sealant, loose tiles and leaky taps.

Repaint dingy walls, replace the hardware on cupboard doors and re-grout the tiles. 

Update The Windows

Double-glazed windows will keep the noise out and, in winter, the heat in – a serious selling point for energy-conscious buyers.

Double glazing should also help keep down the cost of home insurance (because single-glazed windows are more likely to get damaged).

Before you commit to any changes, look at the windows of properties in the neighbouring area. Identify the styles that most suit your home’s character.

And Finally, A Few General Renovation Rules

• You don’t have to spend a lot of money to make a significant impact.
• Renovations should be in keeping with the style and scale of your property.
• Keep things neutral so you don’t alienate buyers.

If you’re planning renovations, contact us today at 023 8001 8222. We can advise as to whether the changes could add value to your home. 

A Southampton Landlord’s Guide To A Dispute-Free Garden

Gardens can boost a rental property’s appeal, often making it more attractive to potential tenants – especially during May, as spring is here and summer is around the corner.

But, as beneficial as they may be, gardens can also be a source of friction between landlords and tenants, particularly when it comes to maintenance responsibilities.

To skilfully swerve such disputes, landlords should adopt a proactive approach.

Here are five straightforward strategies to help keep your garden an asset, not a liability.

Simplify Garden Designs

Choose garden designs that are both appealing and easy to maintain. Opt for plants that require minimal upkeep, such as perennial shrubs, to reduce the burden on tenants. Avoid planting species known for rapid growth or those that can become invasive, like bamboo. A more straightforward garden design means less room for disputes over maintenance and care.

First Impressions Count

Before a new tenant moves in, make sure the garden is in excellent condition. This sets a clear standard of how the garden should look and be maintained throughout the tenancy. Basic tasks like weeding, mowing the lawn and cleaning the gutters can make a significant difference in how the tenant perceives and cares for the garden.

Clarify Responsibilities In The Contract

Make sure you mark out garden maintenance responsibilities within the tenancy agreement. While tenants are typically expected to handle routine tasks such as lawn mowing and garden tidiness, landlords should take responsibility for structural garden maintenance, including fences and garden paths. By explicitly stating these responsibilities, you can prevent misunderstandings down the line.

Keep Detailed Records

Keeping thorough records of the garden’s condition when the tenant moves in can be invaluable for a landlord. Photographs and detailed descriptions in the check-in report can provide a clear benchmark for the garden’s required state throughout and at the end of the tenancy. This documentation can be used if any disputes arise.

Regular Inspections Are Important

Don’t neglect the garden during routine property inspections. If you observe issues, such as excessive weeds or accumulated rubbish, address them promptly with your tenant. Early intervention can prevent minor problems from escalating into major issues.

Landlords can use these strategies to minimise the potential for garden-related disputes and ensure their property remains attractive to current and prospective tenants.

Clear communication and setting expectations will help grow a harmonious tenancy.

Contact us today at 023 8001 8222 with anything you need to know about rental property in Southampton.

In Or Out? Should You Be Present When Buyers View Your Southampton Property?

 So, you’ve prepped and primped your home, and it’s been photographed looking its very best.

Now you’re ready for the next step in the selling process – viewings.

This can be a make-or-break moment, where buyers fall in love and make an offer on the spot or run a mile.

So how can sellers ensure viewings run smoothly and that nothing they do or say deters a potential buyer?

Aside from the obvious things, like keeping your home clean and clutter-free (with no dirty underwear on show), most agents recommend that sellers go out for viewings.

This advice may seem counterintuitive. Surely, the owner knows more about the property than anyone else, so should be on hand to answer questions.

But based on our years of experience, we’d advise that owners (and their offspring and pets) are not present during viewings. Here’s why.

Awkward atmosphere

Viewings are an opportunity for buyers to visualise themselves living in the property. Having the owner present can be off-putting and make all parties feel uncomfortable.

Rush the process

If buyers feel uneasy, they may rush the viewing instead of taking the time to carefully consider the property’s merits and potential.

Leave it to the experts

Agents have years of experience managing viewings. They’ll have asked the buyers an array of questions to get to the nub of what they’re looking for and established a rapport with them.

Negotiating nous

Good agents are expert negotiators, adept at responding to cheeky or downright audacious offers. However, when put on the spot, anxious sellers can sometimes show their hand or say something unhelpful.

Candid feedback

After a viewing, an agent will ask the buyer for feedback. This can be a useful way to identify any niggles that need addressing. Buyers are less likely to be honest with the owner as they won’t want to appear rude.

Understanding the lie of the land

If buyers have questions about the history of the property or want details about refurbishment works, the agent can pass these questions on to the seller. This way, the seller’s expertise is utilised, just not during that first viewing.

If you’d like more professional advice about marketing your property, contact us today at 023 8001 8222.