Your Watford & Hertfordshire market report

In the run-up to the rate cut and the Autumn Budget, many put their spending plans on hold as they waited to see how it would all pan out. This means the housing market has been sending some very mixed signals.

Rightmove's data showed the average new seller asking prices rose by just 0.3% (+£1,199) to £371,958, well below the typical 1.3% October increase. However, the number of agreed sales increased by an impressive 29% yearly.

Meanwhile, Nationwide's data on completed purchases painted a slightly different picture, with house prices rising just 0.1% and annual growth slowing to 2.4%, down from 3.2% in September.

Stephen Brick, Rolstons Associate Director, says: "This month's subdued price growth comes as buyer choice soars to a level not seen since 2014. With the ball in the buyer's court and the pick of a big crop to choose from, sellers need to be pricing competitively to find a buyer, particularly with affordability still very stretched.

"Despite post-budget uncertainties, the big picture still looks positive for the market heading into 2025, particularly now we're seeing the anticipated base rate cuts materialise."

Scott Rose, Rolstons Senior Sales Consultant, adds: "Housing market activity has remained relatively resilient in recent months, with the number of mortgage approvals approaching pre-pandemic levels, despite the significantly higher interest rate environment. Solid labour market conditions, with low levels of unemployment and strong income gains, even after taking account of inflation, have helped underpin a steady rise in activity and house prices since the start of the year."

Reaction to both the budget and the rate cut has yet to reach the market fully, and although the rate cut will be welcomed by all in the sector, many are still digesting the full implications of the budget.

Rachel Reeve's refusal to renew the stamp duty holiday when it expires on March 31st, 2025, however, is likely to have a more immediate impact on activity. From then on, first-time buyers' nil rate band threshold will fall to £300,000 from £425,000, while for other residential buyers, it will drop to £125,000 from £250,000. This is expected to create a surge in transactions until spring 2025, followed by a somewhat quieter period.

Rental & Buy To Let Market

Once again, the rental market has reached new highs but shows signs of stabilising. While the average rent outside London hit a 19th consecutive quarterly record of £1,344 per month, the 5.2% annual growth rate is at its slowest since 2021.

In London and Hertfordshire, rents have reached new heights at £2,694 per month - up 2.5% from last year. Tenant demand, though, has moderated, with the average number of enquiries per property falling from 23 last year to 15.

With rental property supplies rising, landlords must adjust their expectations downwards for the first time in a while. Over a fifth of rental properties currently see price reductions to secure a tenant, up from 16% last year.

In other news, the Autumn Budget's increase in the stamp duty premium for Buy-to-Let properties to 5% was not good news for investment in the sector, but there was relief that the expected rise in Capital Gains Tax didn't happen.

If you'd like to talk to an agent for more personalised advice, our team is always available to help. We'd love to hear from you for a quick chat or a no-obligation property valuation.

Warm wishes

The team at Rolstons