West End Property Update Q1

Jon Hudson writes an update for the first quarter in 2024 for both residential sales and lettings. Far from continuing on from the quieter Q4 in 2023 there has been some interesting and positive changes to the residential market so do read on or click on the video below to hear what Jon has to say.

 

Residential sales in Quarter 1 provided us with much hope as the year started with an offer of a 5 year fixed rate at under 5% which reignited buyer interest after a quiet end to 2023. Rates then dropped back before ending the quarter on a positive note as expected interest rate cuts were jumped on by the banks to entice new mortgage lending.

In January enquiries for sales were up compared to December by 20% as buyers felt more confident for the year ahead. February dropped off a little but the quarter ended on a positive note with a 42% rise in deals being agreed compared to the same period last year. 60% of deals were agree to overseas buyers of which 20% were from Asia and 40% were from Europe.

The stock coming to the market in Q1 is more varied although there seems to be a shortage of 1 and 2 bedroom properties priced between £850,000 and £1,250,00 where there is a high level of demand.

As we look ahead to Q2 we do see blue skies ahead as positive news on mortgage rate reductions and the warmer weather will bring a spring in the step of more buyers.

In Residential lettings the first quarter of any year often starts slowly but we saw a moderate 5% increase in new business agreed compared to the same period last year. Of those deals agreed 83% were to professional tenants of which 29% were European, 28% from Asia, 18% were UK based and 12% from North America with a mixture of other countries making up for the remainder. Renewals dropped off by 21% the first quarter, slowing for the first time in 18 months, however they are still up by 13% over the last 12 months.

Available stock rose slightly by 16% compared to the same period last year, partly due to a small decrease in renewals and a few new build properties coming to the market.

Q2 will no doubt see the normal spring uplift especially as we head into the month of May which will continue strongly right through until early October, so if you are a landlord it is important to catch this busier market to maximise rents achieved and to have the widest choice of tenants.