By Andy Wade – Director Gallant Richardson Colchester
Colchester Property Market Update – June 2024
Good news for both buyers and existing homeowners in Colchester as lenders announce cuts to mortgage interest rates. Three of the UK’s big mortgage lenders recently confirmed the reduction of over 100 mortgage deals after months of increases.
The HSBC, TSB and Barclays have all recently announced mortgage interest rate cuts and brokers are confident that the cuts will prompt other lenders to follow suit.
Although the Bank of England held the cost of borrowing at 5.25 per cent in May, a 16-year high, it signalled a rate cut could come as soon as this month, particularly given the recent news of a fall in inflation.
UK inflation has fallen to 2.3%, which is just shy of the Bank of England’s target of 2%. This marks its lowest level in almost three years.
Mortgage markets have therefore, adjusted their forecasts, signalling a potential end to the recent trend of lenders increasing their rates which has resulted in the announced cuts.
New Record for Asking Prices
With the reported high levels of buyer demand, compounded by lower levels of supply, inevitably leads to higher prices. This is confirmed by the recently published House Price Index from the property portal Rightmove, which confirms asking prices hit a record high in May, as homeowners, buoyed by the news of lower mortgage interest rates and stronger buyer demand, have become more optimistic.
The latest house price index shows that the average price of property coming to the market reached a new record of £375,131, rising by 0.8% at the start of May. Asking prices are 0.6% higher than this time last year, although there is of course no guarantee that homes will sell at these prices.
The data from Rightmove confirms that the price growth continues to be led by the largest-homes, top-of-the-ladder sector, with prices in this sector up by an average of 1.3% compared with last year and suggests that the market is being driven by pent-up demand.
The report further confirms that the number of sales being agreed during the first four months of the year is 17% higher than last year, outstripping the 12% increase in the number of new sellers coming to market, highlighting the strength of buyer demand.
Top Ten Most Viewed Properties on the Gallant Richardson Website in June
#1 House for sale in Colchester – £300,000
#2 Flat Sold in Colchester – £150,000
#3 House To Let in Colchester – £1,500 pcm
#4 House To let in Colchester – £1,300 pcm
#5 House for Sale in Mile End – £450,000
#6 House for Sale in Colchester – Guide Price £600,000
#7 House for Sale in Colchester – £350,000
#8 Flat Sold in Colchester – £220,000
#9 House for Sale in Colchester – £350,000
#10 House for sale in Colchester – £270,000
Considering a Move to Colchester
With strong demand for properties both for sale and to rent in Colchester at the moment, we have many first-time buyers and renters looking for a home in Colchester and the surrounding areas.
If you are considering a move please feel free to call our office, either for an informal chat about the market and how we might help you with this or to book a market appraisal.
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.
You can also see our ‘Recently Sold Properties’.
Andy Wade – Gallant Richardson
See our ‘Customer Reviews’.