Islington Property Market - September 2024

The Islington Property Market update, created by me for you every month, is now in its second year! Since this time last year, I have provided you with the latest on Islington's N1, N5, and N7 property market. Now updated and expanded. 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 September 2024, compared with 2023 and 2022.

Islington Market Takeaways

There are way more properties available for sale, and new instructions increased a lot, than during September 2023 and 2022. That higher choice for buyers increases the buyer's market. With price-sensitive buyers, it means that properties will not command higher selling prices.

Naturally, with more properties for sale, more sales are agreed however not corresponding to the many more properties for sale. There are instead more price reductions and way more properties listed for longer than 12 weeks, than last year.

However, what is hindering a strong buyer's market is the number of buyers searching. Properties received on average 87 views in September, compared to 59 last year.

Jacob's note...

Sellers have to price right at the outset to avoid the adverse effects a price reduction brings. It is also important to present your property beautifully, to attract eyeballs, desire, and thus motivated offers. 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 July 2024. The charts below display the data for Islington (borough), Inner London, and the 10-year average (2014-2023).

Islington

Average property prices are just that: average. They depend on what properties come to the market and sell. When more expensive properties sell during a month, they will hugely affect the average number. 2023 having a higher average than 2024 is irrelevant. The great data for Islington homeowners is that both 2024 and 2023 are above the 10-year average.

This graph is more interesting. All property types are selling for more than the 10-year average. Detached and semi-detached properties have appreciated the most. The interesting part is that flats and maisonettes are so closely aligned with the 10-year average.

At any time, there are many flats and maisonettes for sale in Islington. To stand out, you have to nail the four P's: Presentation, Person (Agent), Promotion, and Price - leading with strategies to sell your property for the highest price.

This chart shows incredible data of Islington's average asking price versus the completed sale price. The average sold property price in Islington (borough) in July of ￡684,844 had the sale agreed 3-6 months before that. During those months November to April the average asking price in Islington can be calculated at ￡791,311. The gap between the two is ￡106,467.

￡106,467 is too big to be a gap between the average asking price and the average completed selling price. It shows that pricing your property too high does not work.

Inner London

London is catching up since earlier in the year. Do not be misled by this graph. The difference in July was only 16,507 - an insignificant number.

Jacob's note...

Remember that average selling prices are just average. Consult with an amazing estate agent and have a conversation about how you can increase the saleability of your property.

Let's dive into the national statistics from Simon Gates, Rightmove, Zoopla, and Lumon. We begin with analysing the average asking prices.

• Simon Gates reported some amazing data in his UK property market update for the third quarter. There were 11% more properties for sale in Q3 2024 compared to last year and 19% higher than the six-year average for Q3.
• In 2024, of properties that have left the market (either as sold or withdrawn), only 53.43% have found a buyer and this means almost half of potential sellers will not go on to sell.
• The extra level of choice of property available to buyers has meant that only those sellers pricing correctly and showing value for money are finding themselves a buyer.
• The number of fall-throughs seen in Q3 was up on the last quarter, Q3 last year, and the average for recent years. For example, properties that find a buyer in less than 25 days have a 6% chance of falling through and properties that secure a buyer after 100 days have a 44% chance of falling through.
• There were just over 100,000 price reductions in September. This is 10% higher than the previous record and also 70% higher than the monthly average going back to the start of 2019.

• Rightmove reported that the Autumn action starts early as "movers spot window of opportunity" to act as mortgage rates trend downwards and property choice increases.
• Homeowners are more confident to come to market, with the number of new sellers up by 14% on this time last year, and the average number of available homes for sale per estate agent at its highest since 2014.
• The monthly average asking price increased by +0.8%, double the long-term September average, with prices supported by increased activity levels.
• +27% increase in national property sales agreed, a strong rebound from this time last year, a strong rebound compared with last year’s more subdued market as pent-up buyer demand is released. The number of potential buyers contacting agents is also up by 15% compared with this time last year.
• There are still uncertainties ahead as value-conscious buyers take their time to find the right home at the right price. The average property is still taking 60 days to find a buyer, which is three days longer than at this time last year even with better market conditions. Pricing right is still key for a successful sale as the market remains cautious.
• The average 5-year fixed mortgage rate is still 4.67%, and while this is lower than the peak of 6.11% in July 2023 nearly double the 2.34% at this time three years ago.

• Zoopla reported that the lowest mortgage rates for 15 months boost sales market activity.
• Buyer demand and sales agreed up 25% since 2023, however, buyers remain price-sensitive, keeping price rises in check.
• Almost a third of homes for sale nationally are ‘chain-free’ as investors and second homeowners sell in the face of recent and possible tax changes.
• Property prices are now at 0.7% inflation compared to a year ago. However, the average UK house price is set to rise by 2.5% by the end of the year.
• The average mortgage rate for a new 5-year 75% LTV loan is 4.3%, compared to 5.5% a year ago, the lowest since May 2023.?

Jacob's note...

If only half of sellers go on to successfully sell on a national level... that is your incentive to find the most amazing estate agent to sell your property if you want to sell and move to your dream home in months not years.

Islington followed the national activity. There were many more properties for sale nationally, as Gates stated: 19% more than the six-year average for Q3. In Islington, there was a similar activity with more available properties and new instructions to sell. Meanwhile, Islington aligns with the national data that sales agreed increased, and that buyer activity is up with more views on property listings.

You have to remember that buyers are price-sensitive. Properties do not command higher selling prices with the increased buyer activity when there are a ton more properties for sale, and in Islington, even more price reductions than in previous months.

Just look at the difference of Islington's average asking prices and average closed sale prices in June 2024, just before the summer holidays, the gap was ￡142,655. That is way too big. This means you cannot price higher to sell, which is likely to result in you loosing more money by selling for far less than if you would have asked a reasonable price to begin with.

You have to price right and have the right marketing, property presentation, and selling strategy, with an amazing estate agent, to be in the group of only half of properties successfully selling.

Currency Market Takeaways

Steve Eakins of Lumon reported a breaking story that puts a big emphasis on the importance of having a currency partner as a property buyer purchasing abroad, or as an overseas buyer purchasing in the UK.

On the 3rd of October, the Pound dropped 1%. This drop means that for an international buyer buying UK property with USD or EUR, a ￡1,000,000 property became €12,000 cheaper due to this drop.

What changed? BOE / Andrew Bailey hinted at a 'more aggressive' cut to interest rates, meaning borrowing costs could drop faster than expected. Investors are now pulling out of the Pound, reducing demand and, as a result, lowering its value.

This 1% change does impact sellers moving abroad For UK sellers moving abroad, their Pound Sterling will not stretch as far post-sale. For UK buyers in Europe, this could mean more room to increase offers without actually spending more in Pounds.

However, for any buyer of property, whether in any currency, understanding currency changes and locking in great rates by working with a currency partner is a great thing for their purchase, to avoid having a 1% drop impact massively.

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

Jacob's note...

Interestingly, N7 and N5 appreciated way more than N1, which generally decreased in the value change during the last 12 months. However, some parts of the very desirable areas of Barnsbury and Canonbury stood their ground and appreciated in value.

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.