Northern towns bounce back better with surge in buyer demand – Rightmove
-
- The top ten places with the biggest increase in buyer demand over the past two weeks compared to March are dominated by towns in the North West and Yorkshire and the Humber
- Picturesque and rural Hereford in the West Midlands is top of the list, and the seaside town of Hastings is the only place from the South to make the top ten list
- The remaining eight are all in the North West and Yorkshire and the Humber, with Wigan, Rochdale, Wilmslow and Scarborough making up the rest of the top five
- Since the market reopened in England it’s typical family homes of three or four bedrooms that are achieving closest to asking price, with buyers agreeing to pay 98% on average in England
- This compares to 97.5% of the asking price being achieved for first-time buyer properties and 97.4% for larger top of the ladder homes
Since the housing market reopened in England on Wednesday 13th May the release of pent-up demand has led to record levels of buyers enquiring about their next home.
New analysis from the UK’s biggest property website Rightmove, based on circa 95% of all properties for sale from estate agents, has found some of the strongest markets are currently in the north.
The demand study is based on the number of people phoning and emailing estate agents about properties for sale over the past two weeks, compared to the first two weeks in March. The average for England is an increase of 32%.
The top ten includes three places in Greater Manchester – Wigan, Rochdale and Bolton – perhaps as prospective buyers look to make their budget go further. Nine out of the top ten have average asking prices lower than the current average for England of £337,884. The only exception is the affluent town of Wilmslow where average asking prices are £461,535. Topping the list of best performers is historical Hereford in the West Midlands, and seaside town of Hastings makes it in as the only Southern area.
There is only one city – Newcastle – that tops the list for the best performing place within its region in England, which again is one of the more affordable cities in the country.
Area % increase in buyer demand 1st-14th June vs 1st-14th March
New seller average asking price June 2020
Hereford 77% £233,400 Wigan 71% £165,448 Rochdale 66% £179,329 Wilmslow 63% £461,535 Scarborough 62% £172,332 Bolton 59% £183,062 Bradford 59% £141,266 Rotherham 56% £171,698 Hastings 56% £257,596 Accrington 56% £115,645 Number one in each region of England
Area
Region
% increase in buyer demand 1st-14th June vs
1st-14th March
New seller average asking price
June 2020
Hereford West Midlands 77% £233,400 Wigan North West 71% £165,448 Scarborough Yorkshire & the Humber 62% £172,332 Hastings South East 56% £257,596 Truro South West 55% £259,050 Newcastle Upon Tyne North East 54% £197,585 Sudbury East of England 54% £259,475 Chesterfield East Midlands 43% £206,996 Top ten biggest cities in England (based on number of listings on Rightmove)
City % increase in buyer demand 1st-14th June vs 1st-14th March
New seller average asking price June 2020
London 19% £628,284 Manchester 21% £215,333 Birmingham 26% £241,207 Liverpool 39% £157,899 Bristol 28% £330,691 Nottingham 18% £225,233 Sheffield 31% £189,747 Leicester 24% £228,458 Newcastle Upon Tyne 54% £170,803 Leeds 25% £217,402 A separate study by Rightmove of the prices of over 7,000 newly agreed sales, provided to us by some of the country’s largest property groups, shows that agents selling typical ‘second stepper’ homes, those which have three or four bedrooms homes excluding four bedroom detached properties, are achieving closest to the last advertised asking price on Rightmove when agreeing a sale. The findings are similar to our analysis from earlier this month that found bigger, more spacious, homes have made it into the top five most sought-after property types, replacing flats.
Property sector
New seller average asking price in England % of asking price achieved 13th May to 4th June 2020
First-time buyer
(two bedrooms or fewer)
£212,528
97.5%
Second stepper (three and four bed homes excluding four bed detached)
£297,757
98.0%
Top of the ladder (Four bed detached and five beds above)
£591,508
97.4%
Most sought after property type May 2019
Most sought after property type January 2020
Most sought after property type May 2020
BUYERS One bed house Three bed house Three bed house Two bed house Two bed house Two bed house Three bed house Three bed flat One bed house Three bed flat One bed house Four bed house One bed flat Two bed flat Six bed house Rightmove’s property expert Miles Shipside said: “The fact that towns are bouncing back better than cities is indicative of many prospective buyers choosing smaller areas to live, but still looking for places that will have all the facilities they need on their doorstep. Many of the towns in the list have cheaper prices so a buyer’s budget goes further allowing extra space for possible home-working and gardens for private relaxation.
“Our new analysis of the prices that buyers are agreeing to pay shows that properties in the typical family home or second stepper sector are achieving closest to their asking prices. If you exclude London and some more expensive areas in the south then these types of home are typically in the £250,000 to £500,000 price band. These are currently appealing because they’re likely to benefit from more space and a private garden, attributes that home-movers tell us are now even more important than before lockdown.
“There are still 175,000 sellers missing that would usually have come to market when it was closed, so sales agreed numbers will take a while to recover to normal levels, and much hinges on the deals that lenders are able to offer buyers in the current market.”
Agents’ Views
Steven Thomas, Director of Watkins Thomas in Hereford, says: “Our market has been very busy since we were able to reopen in May. There’s been a shift in the type of buyer since before lockdown. We were dealing with a lot of first-time buyers with limited deposits in March, but now it’s families looking for more space. It’s a bit like what we see in January – families spend Christmas sitting down and talking about their next move and they get going in January. We’re now seeing people, having sat down during lockdown and reviewed what they’re looking for, jumping into action in June. June and July is often quieter for us because this group of buyers are usually away, so that’s why we’re seeing a surge of late spring buyers. There’s also a lot of real interest coming from the South East, from people in their 50s and 60s realising they can get a lot more for their money and can live in an area with acres of open countryside.”
Kristian Derrick, Director of Ashtons in Wigan, says: “Since the market reopened we’re finding that the majority of our three and four bed homes are selling for at least asking price, with many going to sealed bids with a number of buyers interested. Typically these buyers have been local families looking for more space. We’ve also seen a big increase in the buy-to-let market, with investors able to purchase a terraced home in relatively good condition in a good area for under £100,000
You May Also Enjoy
Real Estate Lawyers: Who They Are and What They Do?
Weekly News Roundup – 03/05/24
Rightmove’s weekly mortgage tracker – 02/05/24
Powering Up Your Brokerage: How Real Estate Apps are Transforming the Industry
Breaking Property News – 02/05/24