QUARTERLY PROPERTY MARKET INSIGHT - Q1 2019


QUARTERLY PROPERTY MARKET INSIGHT - Q1 2019

Sales and lettings property performance Q1 2019

SALES AND LETTINGS PROPERTY PERFORMANCE IN SURREY AND LONDON - Q1 2019

The property market is often a key indicator of political uncertainty as homeowners are less inclined to make a more permanent move during such times. We can see the possible impact of the current political situation most acutely when looking at London, as the annual change in average sales prices has experienced a consistent decline over the past 12 months, however pleasingly prices across Surrey and the South East are holding firm.

 

Our analysis shows a different situation in the rental market, indicating that people are opting for a more temporary move until a more stable position emerges. Average rents have steadily improved in London over the past year. The South East is also on an upward trajectory, with Surrey a little slower to catch-up.

 

Along with presenting market insights for sales and lettings, we also take a look at trends in the new build market, with flats still the most popular choice for those buying and renting in Surrey and London.

 

Important: It’s always important to remember that each property is unique and whilst these are average property sales and lettings statistics, to get an accurate value of how much you could actually sell or let your property for, make sure you get in touch with us today to book your free face-to-face property valuation.

 

SALES PROPERTY

Graphs referenced:
Average Sales Prices
Annual % change in average prices (12 months)

 

The last 12 months paints an interesting picture when looking at the annual change in house prices. Since the summer, the South East has held reasonably steady, with around a 2% change in average prices each month.

 

In comparison, Surrey started 2018 well, but prices fell during the summer. However, the county slowly began to recover with the latest data showing an 0.4% improvement in average prices. The desirable nature of Surrey means it consistently demands a higher property price than the South East, with the latest average prices reaching £444,380, versus £325,860 in the wider region.

 

Despite the downward curve when comparing sales values to the previous year continuing over the last quarter, prices in London were still higher than the wider South East, with the average property now costing £458,495 in the capital.

 

 
 

Graphs referenced:
Transactions by month

   

Property transactions in Surrey and London have declined over the past few months, with the usual seasonal dip in December due to the shorter trading month. Transactions during January have begun to recover, but it will be interesting to see whether this trend continues. Looking back 12 months we can see that property transactions do steadily increase as we head into Quarter 1 and 2.

 

 
 

Graphs referenced:
12 months: Transactions by property type

 

When comparing property type, flats were the most popular purchase over the past 12 months in Surrey, with just under one third (31%) of all transactions falling into this category. In London flats contributed to over 50% of all transactions. This was followed by semi-detached housing contributing 27% of all transactions in Surrey and terraced properties making up 30.2% of all London property transactions. The least popular property type was detached houses in Surrey and London.

 

 

 

LETTINGS PROPERTY

Graphs referenced:
Annual % change in rents

 

The picture for lettings is quite the opposite of the sales market, with London on a consistently positive trajectory. Average rents in the capital have been climbing over the past 12 months, with January 2019 seeing the annual percentage change in rents reach a positive figure for the first time since May 2017.

 

Although also moving in the right direction, rents in Surrey are slower to improve. The South East shows a slightly more positive picture; the region clocked positive figures over the past four months following a negative period. However due to the popularity of Surrey, it can demand a higher average rent per property type than the South East, at around £250 on average.

 

 
 

Graphs referenced:
Age profile of tenants

 

The biggest proportion of renters in Surrey, London and the South East are those aged 18-29, with London showing a slightly smaller number of young renters versus Surrey and the wider South East. The overall picture for all areas is similar, with less people renting the older they get – only 2.9% of people aged 60+ rent in Surrey and even less in London at just 1.7%.

 

 
 

Graphs referenced:
Profile of properties let (rental properties profile)

 

Across the market, flats make up the majority of properties let over the past 12 months, with this property type accounting for around 50% of all properties let in Surrey and 75% in London. Terraced housing is the next most popular property type with semi-detached housing and detached housing being in the minority of types of properties let.

 

 

 

NEW HOMES PROPERTY

Graphs referenced:
Change in average price by property type

 

Over the last quarter, the annual percentage change in prices for Surrey and the South East has remained stable and shown positive growth on the previous year, dispute overall transactions falling. Despite the decline in the London market, new build prices in the capital still demand consistently higher prices than those outside and in the home counties.

 

 
 

Graphs referenced:
12 Months Transactions by property type

 

Interestingly, when looking at just new build transactions in Surrey, 66% of all new property purchased over the last 12 months were flats – showing that developers are focusing on building smaller units in the area. As is to be expected in London over 90% of all new build properties where flats.

 

 

 

Summary

When looking at the sales market, the South East has held its value best in comparison with Surrey and London. The picture in London shows a gradual downward curve in average property prices – particularly over the last quarter.

 

In the lettings market, rents in London are performing better than the previous year. The last three months have seen the percentage change in rents reach consistently positive. The South East is also on the up, with Surrey slower to recover.

 

When looking at property type, detached housing is performing particularly well in Surrey, with average monthly rent £1,878, beating average rents for the same property type in London (£1,863). In the South East, flats are still very popular, comprising just over two thirds (66%) of all new build property purchased over the last 12 months and 50% of all properties let – likely reflecting the popularity of the region with those aged 18-29.

 

Important: It’s always important to remember that each property is unique and whilst these are average property sales and lettings statistics, to get an accurate value of how much you could actually sell or let your property for, make sure you get in touch with us today to book your free face-to-face property valuation.

 

PROPERTY PRICES IN SURREY AND LONDON BY AREA

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Unless otherwise shown, the data shown is a rolling 12-month average based on latest market information from Land Registry. All data provided by Dataloft.