The UK General Election’s impact on the property market so far, both nationwide and in Lancaster, has been minimal, with market trends, buyer interest, and property values remaining stable despite political anticipations. Economic fundamentals, interest rates, and housing supply continue to exert greater influence over market dynamics.
Lancaster homeowners and buyers have prioritized these fundamental factors, showing resilience in their property decisions. Regardless of election outcomes, such as predictions of a Labour ‘Super Majority’ or a potential ‘Starmer Surge’, the market’s direction is more influenced by broader economic conditions.
Increased competition is expected as more homes are listed for sale in the coming months, alongside reduced affordability and demand due to rising mortgage rates, particularly affecting southern regions. Local amenities, reputable schools, and public services remain pivotal considerations for prospective buyers.
Avoid overpricing
Some estate agents initially advise homeowners to list their properties at inflated prices, later suggesting price reductions.
In Lancaster, many homeowners are urged to list at higher prices despite reservations. If these homes receive few viewings and no serious offers, sellers often lower their prices. This initial overpricing can lead to prolonged listings and missed opportunities.
While aiming high is natural, testing the market with a slightly higher price tag is understandable (a strategy we use after thorough discussions). However, failing to adjust after weeks of minimal interest can be costly. An overpriced home may stagnate, raising doubts among potential buyers. Promptly responding to early signs of low interest is crucial to avoid extended listings and ensure a successful sale.
The Current UK and Lancaster Property Market
The UK property market in 2024 has seen 459,682 homes sold year-to-date, an 11.3% increase from 2023 but down 22.9% from 2021.
Currently, there are 694,281 homes for sale across the UK, significantly higher than the 481,242 available in May 2021, marking a 44.3% increase. This discrepancy between sales and available inventory indicates a dynamic market landscape. Turning to Lancaster-specific data…
In May 2019, there were 920 properties for sale in the Lancaster area (LA1/LA2). By May 2020, amidst the pandemic, this number dropped by 12.7% to 803 homes. Moving to May 2021, Lancaster listings further decreased to 597, marking a 35.1% decline from May 2019. Today, the figure stands at 853 homes, showing a substantial 43% increase from May 2021.
It’s important to note that only 51.9% of properties listed with UK estate agents since January 1, 2024, have successfully sold and completed. This highlights the significance of pricing your home accurately and selecting a skilled agent for effective marketing, regardless of market fluctuations.
Determining the right price
Lancaster homeowners can gain valuable insights into the local property market using online platforms that offer data on sold property prices, providing benchmarks for comparison. Key metrics like £/sq.ft figures help assess competitiveness, while monitoring how long properties stay on the market offers insights into agent efficiency. Platforms such as Rightmove and Zoopla, along with our Lancaster property blog, provide essential data.
When selling, obtaining valuations from multiple agents and carefully evaluating them is crucial. Agents should back their valuations with evidence, enabling homeowners to make well-informed decisions about pricing their property.
The initial four weeks of listing are crucial for gauging market interest through web views, viewings, and offers. Savvy sellers often start with a slightly lower price to generate more interest and competitive offers. When adjusting prices, consider personal timelines and market shifts over a few months.
Final Thoughts
Our award-winning agency in Lancaster offers personalised experiences and realistic valuations tailored to current market challenges. In slower markets, sellers should assess their current agent’s effectiveness before considering a switch or should even consider the options in renting their property instead.
Renting out unsold properties is increasingly viable amid rising rents, though potential landlords should consider the pros and cons, such as mortgage rates and tax implications.
In conclusion, success in the Lancaster property market lies in realistic pricing strategies and informed decision-making.
Do you have any questions? Has the general election caused you to re-think your plans? Do you wnat to know what it could all mean for your and your home? If so, at JDG we are here to help.
You can call us on 01524 843322 or email me at michelle@jdg.co.uk
Thanks for reading
Michelle x