At the beginning of each month, I always prepare my market update report for LA1. However, in addition to that report, I thought I would take a different approach, this time incorporating the data from LA2 and comparing it to the national market.
For February 2024, the UK property market has seen a continuation of the solid start in the first month of the year. Therefore, in this article, I want to see if that national trend mirrors or differs from the local market in Lancaster.
In the first nine weeks of 2024 (up to the 3rd March 2024), the UK property market recorded 200,823 homes sold subject to contract (STC). This figure is 11.5% higher than the first nine weeks of 2023, where only 180,748 properties were sold STC.
What about national house prices?
The average price of the property sold stc in the first nine weeks of 2023 was £343,690 with an average of £325/sq.ft.
In 2024, the average sale agreed price was almost identical at £348,414, yet the average pound per square foot was slightly higher at £335/sq.ft.
Such a surge in the property market demands a deeper analysis to understand the underlying factors and what they might mean for local markets, such as Lancaster.
Key reasons why the UK property market is doing so well.
Decrease in Mortgage Rates: A key driver for the heightened activity within the property mortgage industry is the drop in mortgage rates. This change has made property ownership more accessible to a broader population, increasing property sales.
Increase in Salaries: The escalation in average earnings has been pivotal, too. With increased income, people are more likely to invest in property, which is considered a stable and profitable investment.
Increase in Rents: The average rent in the last two years in the UK has gone from £1,405 per calendar month to £1,797 per calendar month, making it cheaper to buy than rent on many occasions.
Low Unemployment Figures: A robust employment market coupled with low unemployment figures has boosted confidence among individuals, prompting them to undertake significant life choices like purchasing a house.
Other Influences: Additional elements also contribute, including shifts in demographic trends, changes in housing preferences following the pandemic, and government policies that might have encouraged the buying of properties.
Lancaster’s property market: A comparison.
Now, I turn my attention to Lancaster. Understanding that local markets can behave differently from national trends is vital. (Lancaster being LA1 and LA2).
In the first nine weeks of 2023 in the Lancaster area, there were 191 sales agreed (sold stc), and in comparison, in the first nine weeks of 2024, there were 225 sales agreed in the Lancaster area (sold stc).
This is a 17.8% increase in Lancaster home sales year-to-date ( please note as discussed previously LA1 is just 7% ahead, meaning the villages are once again increasing in popularity).
Overall it is better than the national picture, yet it is still very early in the year so things could change. The price data is also very interesting. Prices locally are still very competitive when compared to the national picture.
- The average price per sqft for homes that are SSTC this year in LA1 is currently £243.
- The average price per square foot for homes that are SSTC in LA2 is currently £278.
Do you have any questions? Do you want to know what this means for you and your home? If so please get in touch. At JDG we are always here to help.
Thanks for reading
Michelle
