QUARTERLY PROPERTY MARKET INSIGHT - Q2 2019


QUARTERLY PROPERTY MARKET INSIGHT - Q2 2019

Sales and lettings property performance Q2 2019

SALES AND LETTINGS PROPERTY PERFORMANCE IN SURREY AND LONDON - Q2 2019

When comparing the sales and lettings markets across the whole of the South East over the past three months, we can see that rental sector is performing well, with average rents experiencing an upward trend. London is leading the way with a 2.4% year-on-year increase in May.

 

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.

 

Traditionally, the sales market is more vulnerable to external pressures. It is clear that London is the hardest hit when comparing average sales prices to the same period the previous year. In comparison, the South East and Surrey are faring better, with both areas reporting growth over the past three months.

 

In this report, we also take a look at trends in the new build market, with flats and detached properties claiming two thirds of the market in the South East.

 

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 percentage change in average house prices in Surrey for the first three months of this year was fairly flat, with some slight improvement in April and May. However, May saw just half a percentage point of improvement when compared to the same month the previous year.

 

In comparison, although experiencing a gradual downward trend, the South East is performing better. The last three months saw the region hold growth at around 1.5% compared to the same period in 2018. However, the picture isn’t as positive in London, with average prices down year-on-year since December.

 

Unsurprisingly, house prices in Surrey were still higher than the wider South East during May, with the average property now costing in Surrey £442,989 vs £325,574 in the South East. Average prices in London are only £11,500 more than Surrey at £454,510.

 

 
 

Graphs referenced:
Transactions by month

   

Following the usual seasonal dip in December, property transactions have remained fairly flat overall. January and February saw 627 and 594 properties changing hands respectively. March bucked this trend a little with 695 properties transacting; but April saw another slight dip with 545 properties sold. Traditionally, we would expect to see transactions lifting over the summer months.

 

 
 

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. This was followed by semi-detached housing (27%), terraced properties (24%) and detached housing (18%).

 

 

 

LETTINGS PROPERTY

Graphs referenced:
Annual % change in rents

 

We are continuing to see strong growth in the rental market in London this year. The annual percentage change in rents for June is just under 2.5% and this trend looks likely to continue for the next quarter. The South East is on a similar trajectory with the annual percentage growth in rents also rising steadily since January.

 

Surrey paints a slightly more unstable picture, with the overall percentage change for the last three months still negative at around -0.5%, compared to the same period last year. It will be interesting to see the impact of the summer months.

 

 
 

Graphs referenced:
Age profile of tenants

 

Surrey and the South East continues to be popular with people aged 18-29, with Surrey showing a slightly smaller proportion of young renters (41%) versus the wider South East (45%). The second most prominent age group in both areas is those aged 30-39, with around 30% of the population falling into this bracket. Renting is less popular with those middle-aged and beyond.

 

 
 

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

 

Flats still make up the majority of properties let over the past 12 months, with this property type accounting for just under half of all dwellings let in both Surrey and the South East. This also demonstrates the area’s ongoing popularity with a younger demographic who want to live in the area but might be saving to buy their first property. The figures show that around 70% of people renting in the South East and Surrey are aged under 40.

 

 

 

NEW HOMES PROPERTY

Graphs referenced:
Change in average price by property type

 

In the new homes market, London continues to see a marked downward trend when we look at the percentage change in average prices, with little sign of any immediate recovery. On the other hand, Surrey is performing well, with the latest data showing a 4% rise in year-on-year prices in May.

 

 
 

Graphs referenced:
12 Months Transactions by property type

 

Flats continue to dominate new build transactions in Surrey. The picture is more evenly spread in the South East, with flats and detached properties claiming just under two thirds of all new build transactions.

 

 

 

Summary

The situation in London for the sales and rental markets is still polarised. Whilst the lettings market is performing well, the sales market is consistently down when compared to the same period last year.

 

When looking at Surrey and the South East, the rental market is performing better than London, with year-on-year growth in average rents reported in both areas. However, property transactions in Surrey have remained fairly flat over the past few months.

 

When looking at property type, detached housing continues to perform particularly well in Surrey, with average monthly rent of £1,953, beating average rents for the same property type in London (£1,712).

 

In the South East and Surrey, flats are still very popular with a younger demographic looking to rent in the region.

 

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.