Dorset Property Market Update September 2024

Edwards - Sold Board

Both Rightmove & RICS Report Increase in House Prices, as Busy Autumn Makes an Early Start

By Grant Brooks – MD Edwards Estate Agents

The latest House Price Index from property portal Rightmove shows a 0.8% rise in the asking prices of newly listed homes.

The Royal Institute of Chartered Surveyors (RICS), the professional body representing most UK surveyors, also reported a positive shift in house prices for the first time since October 2022. According to their monthly survey, a key measure of price growth turned positive. While this is an encouraging sign for the housing market, the modest increase may still be significant.

One of the main indicators in the RICS survey, the House Price Balance, compares the number of surveyors reporting price rises to those seeing declines. In August, the net balance shifted to +1%, a marked improvement from the -67% reported a year earlier. Additionally, 14% of surveyors now expect prices to rise over the next three months, an unusually optimistic outlook from a typically cautious group.

The survey also highlighted increased buyer demand, likely driven by the Bank of England’s recent decision to cut the base interest rate. There has also been a rise in the number of properties coming onto the market. These positive trends align with lenders reducing mortgage rates following the Bank of England’s rate cut from 5.25% to 5% in early August—its first cut of 2024.

Accurate Pricing is Essential

Despite the busier autumn market, realistic pricing is crucial. Sellers should be cautious about setting inflated prices based on optimistic forecasts, as overpricing typically results in longer listing times, fewer viewings, and eventual price cuts.

The first few weeks of a property being listed are usually the best window for a sale. Savvy buyers, having done their research, can recognize overpricing, which can lead to properties sitting on the market without attracting serious interest. In today’s market, overpriced homes are likely to stall.

While some estate agents might encourage sellers to ‘test the market’ with higher prices, this strategy is rarely effective in today’s price-sensitive environment. It’s wiser for sellers to price their homes competitively, secure a buyer, and position themselves to find their next dream home.

Property Renting Update

The King’s speech in July set out the Labour Government’s commitment to a new renters’ Rights Bill, its aim to give greater rights and protections to people renting their homes, including ending ‘no fault’ evictions and reforming grounds for possession. In last month’s article, ‘The Proposed New Renters’ Rights Bill‘ we out the new government proposal.