Nunn...the Wiser

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Ad - Market Update Quarter 2 2024

Andrew Nunn Associates have produced another quarterly review of the property market.

Mateo Asminian in Sales says:

After a positive first three months of the year, largely thanks to the ‘New Year bounce’ and attractive mortgage rates, many were anticipating a busy spring in the W4 property market. The Easter school holidays, which normally bleed some momentum out of the market, came early this year, and the subsequent activity in April appeared to be the start of another competitive market for buyers. In fact, over 40% of the quarter’s sales were ultimately agreed in this month. May, however, saw new listings and, consequently, sales decelerate, with the W4 public’s attention turning to the Early May Bank Holiday, the half term and, most significantly, the announcement of the date for the general election on the 22nd May. As we entered June, 2-year mortgage rates were up 17% since the beginning of the year, the sun had made its long-awaited appearance and the hot topic was “can Southgate bring it home"

Katherine McDowall from the Lettings division says:

The imbalance between demand and supply continues to underpin high rent levels, with instructions down 7.2% and applicants up 17% when comparing Q2 2024 to Q2 2023. However, there is evidence in Q2 2024 to suggest this dynamic is cooling, that certain properties are taking a little longer to find a tenant and that in 18% of cases a price reduction has been required in order to attract the right tenant. In Q2 demand for houses tends to kick in and this has been evident in the property types we have agreed toward the end of the quarter. Instructions The total number of flat instructions in Q2 2024 is 13.7% down on Q2 2023 comprising a drop of 19% for two bedroom flats (221-177) and a drop of 27% for three bedroom flats (48 – 35). This is possibly reflective of more landlords selling off their investments as mortgage rates fail to drop as quickly as expected. We have also seen continual rise in the number of tenants moving out of rental sector and into the ownership market, as the cost of servicing a mortgage compares favourably with current rent levels. By contrast house instructions rose by 22% when comparing Q2 2024 to Q2 2023 with three bedroom properties up a whopping 121%. The increase in house instructions is partially due to many long term post lock down contracts coming to an end in 2024.

For the full report, please click on q2-2024-newsletter.

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July 8, 2024