Spot Light on Hitchin Property Market
Welcome to Our Monthly Newsletter
Hitchin Property Market Report - July 2024
The school summer holidays have begun, and we are excited to share with you the latest updates and insights about the charming town of Hitchin. This month, we will be exploring the local property market, recent changes post-election, and the exciting developments in mortgage rates. Let’s get started!
With the Starmers now settled into Downing Street, homeowners across the nation may be reconsidering their plans to move house. The period leading up to a General Election typically brings about uncertainty and a slowdown in the housing market. This year was no different, although the impact was less pronounced as successive interest rate rises had already dampened demand.
In June, we surveyed agents about their confidence in the housing market, and at that time, 55% of them reported similar or lower levels of confidence compared to three months earlier. However, expectations for sales volume in the next three months have reached their most optimistic level since January 2022.
The increased political clarity, combined with the anticipated interest rate cut by the Bank of England, is expected to further boost confidence in the housing market. Source: Dataloft by PriceHubble, RICS. July 2024
Mortgage Rates Update
Good news for homebuyers and homeowners! Mortgage rates are showing signs of dipping below 4%. A competitive property mortgage price war among banks could mean significant savings for you. Here’s a brief on what’s driving these changes:
- Bank of England and Federal Reserve Signals: Both institutions hint at upcoming rate cuts, boosting confidence among lenders.
- Reduced Sonia Swap Rates: Banks are borrowing at lower rates from bigger institutions, leading to competitive mortgage rates.
- Market Stimulus: To invigorate the market, banks are reducing rates. Some banks have cut rates multiple times in recent weeks.
Remember to check not just the rates but also the associated fees to ensure you get the best deal.
Hitchin Property Market Overview
Current Market Status:
There are currently 221 properties available to buy in Hitchin. Based on historic sales rates, this represents 5.25 months of supply. Properties sold in the last month had been on the market for an average of 14 days, which is 66.8% shorter than a year ago.
- Average Asking Price in Hitchin: £421,919
- Average Achieved Price in Hitchin: £392,523
- Average Semi-Detached Home Price in Hitchin: £533,523
- Average Detached Home Price in Hitchin: £772,936
These figures reflect a dynamic market, offering great opportunities for both buyers and sellers.
Rental Market Insights
The rental market in Hitchin has seen significant activity:
Average Rent: £1255 per month +12% year-on-year
Demographic Insights: 25% of renters are aged between 25 and 29.
Current Properties Available: There are currently 39 properties available to rent in Hitchin, which is 18.9% higher than a year ago.
Market Duration: Properties rented in the last month had been on the market for an average of 8 days, which is 10.7% longer than a year ago.
This increase in rental prices indicates a healthy demand, making it a good time for property investors to consider expanding their portfolios.
Post-Election Market Changes
The RICS net balance indicator reports the balance of surveyors expecting a price rise versus a price fall. It tends to accurately predict price trends 3 to 6 months ahead.
The RICS indicator had been consistently improving since September 2023 but fell back slightly in May and June as the election approached. The push back of expected interest rate cuts to the second half of 2024, would also have been a factor in addition to political uncertainty.
With a new Labour government and greater political clarity, coupled with the real prospect of Bank of England rate cuts on the horizon, this indicator should renew its upward trajectory shortly, heralding modestly stronger house price growth too.
Source: Dataloft by PriceHubble, RICS, Land Registry. July 2024
Local Events and Highlights
Hitchin is not just about property; it’s about community and lifestyle. Here are some upcoming events to look forward to:
Hitchin Beach:
- Date: 07th-26th August 2024
- Time:
- Location: Town Centre
- Enjoy music, food, and family fun.
GoatFest:
- Saturday 23-25th August
- Non-stop live music all weekend