Islington Property Market - October 2024

Exclusively created for you: the monthly Islington Property Market update with tons of news and statistics from Islington's N1, N5, N7, and the rest of the UK. I hope you will find it valuable, as I am your Personal Estate Agent in Islington. Let's get right into it. Enjoy!

Jacob x

These are the fresh statistics from Rightmove, covering the postcodes of N1, N5, and N7. The data for property listings is for October 2024, compared with 2023 and 2022. The data from Rightmove shows resale & new build detached houses, semi-detached houses, terraced houses, unspecified houses, flats/apartments, bungalows, and land.

Islington Market Takeaways

• Available Islington properties for sale up at 2022 levels, and way more than this time last year.
• The optimism in the market during September rebounded, with fewer sellers listing their homes, after seeing the highest levels for two years. However, the number of sales agreed skyrocketed to a level not seen since July 2022 when I started tracking these numbers.
• Number of price reductions at the average level for this time during 2022 to 2024.
• Properties available for more than 12 weeks are still at high numbers, but not higher than in 2022.
• Average daily views per property are down to moderate levels from the high activity in September.

Jacob's note...

There were quite many price reductions during October - the most it has been throughout 2024 to be exact. Remember, 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.

The Land Registry has published the latest average sold property prices for properties sold in August 2024. The charts below display the data for Islington (borough), Inner London, and the 10-year average (2014-2023).

Islington

Astonishingly, Islington's average property price is closing in on the 10-year average. The sales completed and registered in August were likely listed for sale around 7 months earlier, in February, with a sale agreed either quickly or in March (or later). March saw 30% more sales agreed than in February. Price reductions were 90 in January, and 134 in February, 135 in March. March saw more properties for sale and more new listings than in February and January. On top of that, price-sensitive buyers were nervous with the higher mortgage rates and inflation. However, the differences between the months aren't many thousand pounds. It is only around ￡28,000 between the August 2024 and 2023 averages - not a big deal.

Inner London

Interestingly enough, flats and maisonettes are following the 10-year average. Remember that each property presents certain opportunities to achieve the highest price - you just have to discover and take advantage of them. It starts with your property's saleability - how it is presented to the ideal buyer - and it begins with a conversation with your estate agent.

Jacob's note...

The typical headlines on the property market cover property prices, for instance, "rising to a new high". Great, however, a few thousand pounds up or down doesn't make any difference from month to month. Year-on-year increases are a better metric. What's even better, is the number of mortgage approvals. No buyer is going to buy your property for the top pound if they can't even get a mortgage.

That's why the latest numbers for September, reported by Simon Gates, are important. September saw a fourth consecutive increase in mortgage approvals, a 51.5% rise on the figures for the previous September and the highest level seen since August 2022 just before the Truss/Kwarteng budget.

Simon stated that this is clear evidence that although we are still way off the record low mortgage rates of a few years ago, interest rates at today's level are still bringing activity to the market; meaning house prices are growing.

Let's dive into the national statistics from Simon Gates, Rightmove, Zoopla, and Lumon. We begin by looking at the recent breaking news and analysing the average asking prices.

Breaking News

• The UK's bank base rate was decreased from 5% to 4.75% on 7th November.
• After 31st March 2025, the Stamp Duty Land Tax (SDLT, payable by the buyer of the property) for first-time buyers will be 5% on the amount over ￡300,000 - down from today's ￡425,000.
• The surcharge SDLT for buying a second home in the UK has increased from 3% to 5% on the amount above ￡250,000.

• Simon Gates gives context to the big rise in the number of sales agreed, as reported by both Rightmove and Zoopla below. In October last year, we had hit the peak of interest rates (with the UK base rate at 5.25%) and inflation was still running at 4.6% - over double the target of 2%. This meant buyer demand was very subdued, so the sales numbers for October 2024 are more of a rebound compared to the much weaker market of a year ago, but this is not taking away from the fact the number of sales agreed was still up on the previous month of September and the October average of recent years.
• The number of price reductions in October was still 22% higher than the six-year average, so whilst prices have risen, sellers need to price accordingly otherwise buyers will take their time to find something else to buy with there being so much more choice available to them.
• This shows that the market is still very price-sensitive, and sellers coming to the market need to set a realistic asking price to find a buyer.

• Rightmove reported that the average new seller asking price increased by just 0.3%, which is much lower than the average seasonal 1.3% monthly increase at this time of year.
• This month’s limited price growth is in part down to some sellers heeding agents’ and Rightmove’s caution to price attractively to find a buyer, particularly with seller competition rising, helping to keep activity moving. Affordability remains stretched, limiting buyers’ purchasing power.
• The market activity remains strong with people contacting estate agents up by 17% compared with this time last year, and the number of sales being agreed up by 29% year-on-year.
• There are 12% more homes available for sale, intensifying the competition to find an affordability-stretched buyer, as the greater choice of properties to consider is at a level not seen for ten years. It’s a buyer’s market, reinforcing the need for sellers to price competitively.

• Zoopla reported that sales activity is running at the highest level since the 2020 boom.
• The high supply of homes for sale and affordability pressures are keeping house price inflation in check.
• First-time buyers (FTBs) are the largest buyer group in 2024 (36% of sales). This is followed by existing homeowners buying with a mortgage (31%).?Cash buyers are on track to account for 27% of sales. Landlords buying homes with buy-to-let mortgages are set to account for 7% of purchases, with their volumes hit by higher mortgage rates.

Jacob's note...

The national asking price increased way below the average seasonal monthly increase at this time of year. Couple this with the number of price reductions in October being 22% higher than the six-year average. This means you have to price right in what is a buyer's market - with many price-sensitive buyers.

Currency Market Takeaways

Steve Eakins of Lumon reported on the strength of the US Dollar after Trump's win in the US election. Rates went up, at a 3-month high - up 1.5% so far. For a buyer purchasing in USD, their budget just got bigger for buying property in the UK.

The maps below from Bricks&Logic show the 12-month change in property prices and rental prices (value change) in Islington.

Islington - Sales

Islington - Rentals

Jacob's note...

As seen on the completed sales prices from the Land Registry, the running average of property prices in both Islington and Inner London are lower than the comparable average in 2023. That is why the sales map shows up in blue. The rental market in Islington continues to be strong but is not performing as well - at 4.3% - as the average in England and Wales at 5.7%.

I am Jacob Littorin, your Personal Estate Agent in Islington. We are in this together. You have a property dream, and much like a dedicated coach, I prioritise your interests above all else with tailored strategies, campaigns, and outreach, to get you the best deal and smoothest sale.

From the very beginning, I will personally handle marketing, viewings, and negotiation. As?your Personal Estate Agent, I am committed to being your key to unlocking your property dream - today and in the future. ??

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