Islington Property Market - June 2024

Your most favourite Islington update from the postcodes of N1, N5, and N7 in London. In addition, I cover national statistics, currency market updates, and showcase sales price heat maps from Bricks&Logic . Enjoy!

Jacob x

?? AVAILABLE ISLINGTON PROPERTIES

• 1238 - down -0.9% from 1249 in May. ?
• Down -4.0% from 1,290 in June 2023. ?

?? NEW LISTINGS

• 296 - down -6.9% from 318 in May. ?
• Down -14.2% from 345 in June 2023. ?

?? SALES AGREED

• 172 - down -11.8% - from 195 in May. ?
• Up 6.2% from 162 in June 2023. ?

?? PRICE REDUCTIONS

• 135 - down -19.2% from 167 in May. ?
• Down -41.6% from 231 in June 2023. ?

?? LISTED FOR MORE THAN 12 WEEKS

• 1270 - up 2.8% from 1236 in May. ?
• Up 5.7% from 1,202 in June 2023. ?

?? AVERAGE DAILY VIEWS PER PROPERTY

• 72 - down -5.3% from 76 in May. ?
• Up 26.3% from 57 in June 2023. ?

Islington Market Takeaways

• New Islington listings are 49 fewer than in June last year. Nationally, in the two weeks since the surprise election announcement, Rightmove reported that the only sign of election caution was a slight drop in the number of new sellers. Top-end sellers are coming to market 3% lower than a year ago.
• New listings, sales agreed, and price reductions were steady until June, a possible sign of the start of the summer slowdown.
• In Greater London, only 39% of sellers sold their property subject to contract (STC) within 30 days of marketing.

Jacob's note...

Let's look at price reductions, down a whopping 41.6% (96) compared with June last year, and down since May. This is possibly a sign of smarter pricing by sellers and agents.

The big interesting statistic is the average daily views per property, up 26.3% (15) from June last year, but down since May. This means that more buyers are active in Islington this year. Rightmove reported that buyer demand has remained steady nationally and is now 5% higher than last year.

The Land Registry has published the average sold prices for properties sold in April. Below is the data for Islington (Borough) and Inner London, compared annually with April 2023, and monthly with March 2024.

?? ISLINGTON (BOROUGH)

• Borough Average: ￡668,635 Annually: -2.5% Monthly: -1.4% ??
• Detached House: ￡1,829,502 Annually: -3.9% Monthly: -1.4% ??
• Semi-Detached House: ￡1,292,351 Annually: -1.8% Monthly: -1.3% ??
• Terraced House: ￡1,093,069 Annually: -2.6% Monthly: -1.2% ??
• Flat/Maisonette: ￡586,748 Annually: -2.5% Monthly: -1.5% ??

?? INNER LONDON - AVERAGE SOLD PRICES

• Borough Average: ￡574,168 Annually: -5.9% Monthly: 1.4% ??
• Detached House: ￡1,375,390 Annually: -11.6% Monthly: 0.2% ??
• Semi-Detached House: ￡976,024 Annually: -6.4% Monthly: 1.0% ??
• Terraced House: ￡728,507 Annually: -5.5% Monthly: 1.2% ??
• Flat/Maisonette: ￡517,338 Annually: -6.0% Monthly: 1.5% ??

April Sold House Prices Takeaways

• Sold house prices in Islington went down annually and monthly across every property type.
• Across Inner London, house prices went down annually while up slightly since March.
• Detached houses decreased in price the most across both Islington and Inner London.

Jacob's note...

While the curves on the graph go down slightly.. slightly, it is not a dramatic decline. Islington is cheaper than neighbouring Camden and is not as volatile to invest your money in, as seen in the graph. If you are looking to purchase in Islington, now is the time.

National Market Takeaways

• Simon Gates reported that the average asking price during this half-year (H1, January to June 2024), is higher in the price figure and ￡/square foot compared with H1 2023 and H2 2023.
• The average asking price during H1 2024 for new listings was ￡439,679. Compare that figure with the average sale agreed price of ￡360,959. That is a ￡78,720 difference.
• Nationally this half-year, compared with the same period last year, price reductions are 11.22% more. There are 16.19% more listings on the market, 9.98% more new listings, and 15.52% more sales are agreed. This speaks of a more active national market.

• Rightmove reported in June that property sales agreed are 6% higher than last year and have remained steady since the election was called.
• Buyer demand has also remained stable and is now 5% higher than last year.
• The average 5-year fixed mortgage rate is now 5.04%, compared with 4.94% in January. Higher mortgage rates continue to stretch buyer's affordability.

• Zoopla reported in June that 75% of the 1.1m sales projected for this year (nationally) are either complete or in the sales pipeline. The 1.1m sales is 10% higher than 2023 but still below the 20-year average. Quoting Zoopla "It is positive that sales are rising despite higher borrowing costs and shows more realism on the part of sellers and renewed, cautious confidence amongst buyers."
• UK house prices are currently 8% ‘over-valued’ and by the end of 2024 prices will be ‘fairly valued’.
• UK house prices on track to be 1.5% higher over 2024.

• OnTheMarket reported in June that 85% of active buyers in the UK were confident that they would purchase a property within the next 3 months.
• 63% of sellers in the UK were confident that they would sell their property within the next 3 months.
• Buyers are factoring in higher borrowing costs and remain sensitive on price.

Jacob's note...

• The ￡78,720 difference in the national average new listings asking price and sale agreed price is a big number. It implies that overpricing, meaning pricing over the figure recommended, means that you are likely to not sell for more, instead having to reduce the asking price of your property.
• Rightmove's research shows that properties that need an asking price reduction take more than 3 times longer (112 days) to find a buyer than those that do not reduce price. Sellers who price right from the outset may sell 3.5 times more quickly, averaging 32 days to get a sale.
• Buyer demand is higher but buyers are factoring in higher borrowing costs and remain sensitive on price, with higher mortgage rates and repayments. This shows yet again that overpricing does not work as buyers are price cautious.

Currency Market Update

Steve Eakins from Lumon reported that due to the political and economic updates recently the currency transfer market has been moving a lot.

For a EUR or USD overseas buyer seeking to purchase a ￡2,000,000 London property, they now - compared to 3 months ago - pay €56,000 EUR more, or $93,000 USD more, to transfer the money and lock in the property.*

This also means that a client selling in the UK to move abroad could potentially take a lower offer to achieve the same amount for their budget of EUR or USD. Someone moving to Europe could reduce their list price, or take an offer 2.3% lower than list to achieve the same amount of Euros. For anyone moving to the US it is higher at 4.9%.

*Comparing high and low of the inter-bank price, indicative rates. Current rates are subject to live rate movements.

The maps below from Bricks&Logic show the 12-month change in house prices in Islington, in Greater London, as well as in England and Wales.

Jacob's note...

Islington continues to be red on the map, as it has been for many months.

My name is Jacob Littorin and I am your Personal Estate Agent in Islington. My mission is to get you the best price and smoothest process when selling your property and moving to your new home, in what might be the biggest transaction of your life. ??

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*The data from Rightmove shows resale & new build detached houses, semi-detached houses, terraced houses, unspecified houses, flats/apartments, bungalows, and land.