Lower inflation and positive interest rate moods means return to ‘new normal’ housing marke
The year 2024 really is looking like a “return to a new normal” for the housing market, according to leading Worcestershire estate agents Nicol & Co.
Matt Nicol, managing director of Nicol & Co, explained that five-year SWAP rates – always a good indication of changes in mortgage costs – were at their lowest level since last May after reacting well to ongoing Bank of England decisions to hold the base rate at 5.25%.
He added that the sharp drop in inflation had also led to optimism for interest rates for the coming year.
Mr Nicol said: “Our experience in 2023 may sound clichéd, but it was certainly a game of two halves, with the second half seeing the market responding and behaving in line with averages seen pre-Covid.
“Interest rates, through mortgage affordability, are a key determinant for the residential market outlook.
“Both SWAP rates and the recently announced sharp drop in inflation are now backing up the sense that interest rates have peaked, so we are looking forward to 2024 with a degree of optimism.
“An improvement in sentiment should be evident from spring 2024, which means the year ahead is really looking like a return to a ‘new normal’.
“The conditions are good and likely to get better for buyers with more stock on the market to choose from and increasingly affordable mortgage solutions becoming available.”
Meanwhile, Nicol & Co’s market update noted that average sale prices across Worcestershire were all up, according to the latest available Land Registry statistics for the year ended 30 September 2023.
Malvern’s overall average transaction value was maintained at £307,849, with Droitwich up 2% at £286,548 and Worcester, where 44% of sales were recorded, up by 3% to £254,220.
The average rent for homes across the county let over the last 12 months was also up by 8% across the county to £857 per month, with flats averaging £701, while houses achieved £987.
Properties in Droitwich were the lowest at an average of £727 per month, with Worcester at £824 and Malvern at £875.
For more details about Nicol & Co’s market updates and other property news, visit www.nicolandco.co.uk/news/.
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For further media information or interviews, please call:
Matt Nicol, Managing Director, Nicol & Co, 226 Worcester Road, Droitwich Spa, WR9 8AY
Tel: 01905 799072
Notes to Editors
Established in 2009, Nicol & Co is an award-winning estate agency offering advice on sales, lettings, new homes and land purchase. The company combines the latest in digital media with traditional high street courtesy and service to provide the perfect blend of old and new technology.
Prepared and issued by ASAP PR – 07990 978257.