Reading Property Market Update – September 2024
By Charlie Higgs – Owner Village Properties
The latest survey from the Royal Institute of Chartered Surveyors (RICS), which represents the majority of UK surveyors, has revealed a notable shift in the property market. For the first time since October 2022, their key price growth metric turned positive.
RICS’s August report highlights the House Price Balance, which measures the difference between surveyors reporting price increases versus those seeing declines. A net balance of 1% reported price rises in August, a significant recovery from -67% in August 2023.
Additionally, 14% of surveyors now predict a steady rise in house prices over the next three months. This is particularly noteworthy given surveyors’ typically conservative outlook on property values, making this optimism stand out.
The survey also indicated rising buyer demand, potentially linked to the Bank of England’s recent base rate cut, along with a growing supply of homes entering the market.
This positive sentiment follows a reduction in mortgage rates from many lenders and the Bank of England’s decision to lower the base rate from 5.25% to 5% in early August – the first rate cut of 2024.
Reading Area Rental Market Update – September 2024
On the rental front, the outlook remains challenging for tenants, both locally and nationwide. In August, tenant demand continued to rise, while the supply of rental properties remained limited. The RICS survey noted a decline in the number of new landlords instructing estate agents during the month.
Surveyors overwhelmingly expect this imbalance to push rental prices higher, with 39% forecasting rent increases in the near future.
RICS chief economist Simon Rubinsohn commented on the survey, noting an “improvement in sentiment” in recent months. He attributed this to modest mortgage rate reductions and growing buyer interest, though he cautioned that stock levels, while rising, remain low.
Rubinsohn also stressed the importance of “realistic pricing to get deals done” and warned of continued uncertainty, both regarding future interest rate cuts and the upcoming Budget, which may keep market optimism in check.
Setting the Right Asking Price is Crucial
In today’s housing market, setting a realistic asking price is more important than ever. Even with the traditionally active Autumn market, sellers should treat the mixed signals about future house prices as mere speculation.
It’s easy for sellers, influenced by outdated or overly optimistic predictions, to be tempted into overpricing their homes. However, experience consistently shows that overpricing leads to longer times on the market, fewer viewings, and eventual price reductions. By pricing the property appropriately from the outset, sellers attract serious buyers more quickly, resulting in a smoother transaction.
The first few weeks a property is on the market are often the most crucial for generating interest. Buyers today are well-informed and have done their research on property values. If a home is overpriced, it risks missing this initial wave of attention. Without sufficient interest, the property will likely linger on the market unsold.
Some estate agents may encourage sellers to aim high, suggesting they “give it a try” with an inflated price. But in a price-sensitive market, this approach rarely succeeds. Instead, focus on setting the right price from the beginning to attract buyers, sell efficiently, and be ready to move on to your next home.
Recently Listed Homes by Village Properties
Here are just a few of the properties recently listed for sale from our Tilehurst Office –
House for Sale in Reading – Guide Price £590,000
House for Sale in Reading – Guide Price £585,000
House for Sale in Reading – Guide Price £500,000
House for Sale in Reading – Guide Price £435,000
House for Sale in Reading – Guide Price £395,000
To see the very latest homes coming to the market, click ‘New to market homes’, this lists all of the very latest homes as they come to the market.
Or see more ‘Recently Sold Properties’.
Considering a move this Autumn?
If you are thinking of buying or selling a home in Tilehurst or the surrounding areas of Reading, please feel free to call me for an informal chat, I’ll be pleased to help you if I can.
You can also book a Face to Face Valuation, or use our Instant Online Valuation tool.
Thank you for reading
Charlie Higgs – Village Properties Tilehurst, Reading
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