The price is right

8th October 2020

It is no surprise that homes that are priced ‘right’ are secured more quickly.

The lettings market:

In the UK, students in the private rental sector spend an average £568 on their share of rent a month, a total household rent of £1,468.

Student properties marketed at a fair rent are secured three times as fast as those that are priced above market value.

ONS reported a 1.5% annual increase in private rents in August. Agents are reporting an increase in tenant demand and positive short-term rent expectations, suggesting that many markets will be insulated from the end of the eviction ban and the furlough scheme.

All regions saw an increase in private rents. The South West had the biggest annual increase, 2.5%. Scotland had the smallest annual increase, 0.5% (ONS).

The sales market:

Such homes currently sell 26 days quicker than homes that have experienced a price reduction, according to new research by Rightmove.

Correctly priced properties are nearly twice as likely to be Sold Subject to Contract within four months of listing than those that have had their asking price reduced, 63% and 32% respectively.

It is estimated that around 16% of properties currently on the market have experienced a price reduction, properties reduced on average by 5% from their initial asking price.

Although sales volumes have risen since the market reopened, transactions in August up over 15% on July (HMRC), volumes remain lower than a year ago. Sellers who are serious in their intentions to sell are well advised to listen to their agent’s advice on local market pricing. Source: Dataloft, Rightmove, based on 300,000 newly listed properties.