The state of the UK economy and how it impacts on the property market is not looking as gloomy as some predicted, according to leading Worcestershire estate agents Nicol & Co.

Matt Nicol, managing director of Nicol & Co, explained that inflation rates, while still high, were now better than expected.

He said that the latest data showed headline inflation was down to 7.3% and core inflation 6.4%, resulting in lower SWAP rates.

Commenting in Nicol & Co’s August market update, Mr Nicol said: “Swap rates give a good indication of changes to come in mortgage costs – reflecting the cost of borrowing for lenders.

“Inflation data for June, released on 19 July, was better than expected, and this has filtered through into lower interest rates on five-year SWAPs, seeing them dip back below 5%, reversing the previous trend.”

Mr Nicol also highlighted a major speech by Michael Gove, Secretary of State for Housing and Levelling Up, focused on the importance of a new national housebuilding strategy.

He said: “The government says it will be taking steps to unblock bottlenecks in the planning system, introducing new flexibilities to convert shops, takeaways and betting shops into homes to help rejuvenate failing high streets.

“Red tape is also going to be cut to enable barn conversions and the repurposing of redundant warehouses and agricultural buildings.

“New freedoms to extend homes, convert lofts and renovate buildings will also help provide new accommodation within existing properties.

“This renewed commitment to housing should act as a reminder of the importance of a healthy housing market to the economy and successive governments.”

Mr Nicol added: “The future is not looking as gloomy as some predicted and it is worth remembering, no matter who is in power, the housing market is important – and worth a lot of votes. All parties will need to be doing something positive.”

Nicol & Co’s local market update revealed that average transaction values across Worcestershire, according to Land Registry statistics for the year ending 30 April 2023, had shown growth over the last 12 months:

• Malvern, up 6% to £310,100
• Droitwich, up 7% to £298,000 and
• Worcester, where 44.2% of the sales were recorded, up 7% to £259,500.

Further Land Registry statistics provided by Dataloft showed the following increases in average sales price over the last five years:

• Worcestershire, up 27%

• Worcester, up 26%
• Droitwich, up 23%, and
• Malvern, up 27%.

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.