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Halfway through a highly eventful year, the UK property market is finally beginning to settle down
We’re almost midway through the current decade, and so far, there’s been very little to cheer. The UK property market has been on a rollercoaster journey driven by external events – a pandemic and the ensuing race for space, a cost of living crisis, inward migration and rampant inflation.
Yet as we enter the second half of 2024, there are encouraging signs that the property market may finally be stabilising. A raft of news stories towards the end of June suggested the rest of the year will be more benign to sellers and buyers alike than the preceding period – especially once the dust has settled after the general election…
Positive news
June saw the long-awaited announcement that inflation has finally hit the government’s two per cent target. This should encourage the Bank of England to bring down interest rates, in turn enabling mortgage lenders to reduce their repayment costs. This will benefit existing mortgage holders on variable rates and those approaching the end of favourable fixed-rate deals – but it’ll be most keenly felt by people saving for their first home.
The UK property market would collapse without first-time buyers purchasing affordable homes, enabling sellers to move up the ladder and underpinning property chains. Soaring house prices have been an obstacle to first-time buyer activity, so there was more good news in June as a tranche of house price reports indicated a levelling off in values. Although different platforms use their own pricing models and statistical data, the stories they tell have been remarkably consistent:
- Rightmove data on asking prices in Great Britain showed a 0.0 per cent change month-on-month, with properties being advertised for just £21 less than in May.
- Zoopla also reported a 0.0 per cent month-on-month change in their most recent data, with average UK house prices just £210 lower (0.1 per cent) than in April 2023.
- Bucking the trend, the Office for National Statistics reported a 1.1 per cent increase in average UK house prices in the year to April 2024, albeit still a modest rise.
Local focus
While national figures paint a picture of UK property market activity, local data is far more important for buyers in Newcastle and the north-east. The latest Rightmove data shows a modest three per cent decrease in selling prices throughout Newcastle over the last year, whereas ONS data shows a three per cent increase during the same period. The truth is probably somewhere in between and reflects the reports mentioned above– prices are holding steady. In many respects, this is the ideal scenario; sellers don’t have to worry about their assets depreciating, and buyers can save without seeing house prices racing away from them.
Rightmove’s data suggests Tyneside prices have returned to the levels we saw at the market’s 2021 peak of £215,000 on average. Flats here remain among the most affordable in Britain, with average selling prices of just over £128,000, while ONS data suggests the average price paid by first-time buyers across Tyneside in April 2024 was £167,000. That’s roughly five times average UK earnings, compared to a ratio of 12 times average earnings required by first time buyers in London. Then again, the north-east remains by far the cheapest place to buy property in England.
As a locally based agent, with an instinctive and in-depth knowledge of the local market, Cloud Estates is ideally placed to help sellers and buyers navigate the unexpectedly calm waters of today’s UK property market. Get in touch on 0191 640 2478 to see how we can help you navigate the property ladder.
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Our tenth anniversary provides a fitting moment to reflect on past achievements and future plans
Most businesses can trace their history back to modest beginnings. Morrisons began as a market stall, Microsoft operated out of a garage and McDonalds consisted of a single burger shack. It takes hard work, creativity and professionalism to build a new business up from scratch – something the two co-founders of Cloud Estates are currently reflecting on as their boutique estate agency celebrates its tenth anniversary.
Location, location, location
When lifelong friends James Skoyles and Jordan Bowe started trading out of a small office in Kingston Park, they had ambitious plans to grow their fledgling estate agency business. Moving to the more high-profile setting of Jesmond in 2014 turbocharged Cloud Estates’ growth, with a further relocation to Heaton in late 2021 giving the brand a double-fronted high street shop with excellent visibility and accessibility.
As well as upgrading premises during the last ten years, Cloud Estates has also expanded its team. There are now eight full-time staff including a sales negotiator with more than 20 years’ experience, and two in-house maintenance operative who helps us to manage almost 150 properties across Newcastle and Gateshead. The decision to become HMO management specialists proved particularly shrewd, with little competition in this sector. Cloud Estates has subsequently engaged with a series of innovative developers to manage some of the best high-specification HMO properties across north east England.
Tenant’s extra
While some boutique agencies focus mainly on residential property sellers, or concentrate on attracting affluent buyers, Cloud Estates has quietly built trusted relationships with tenants. The type of property tenure is far less important than nurturing strong connections with owners, landlords and tenants alike, particularly as councils up and down the UK are declaring housing emergencies. Many Cloud Estates tenants have been signed up with us since the last decade, generating consistently positive feedback which is also enthusiastically provided by buyers and vendors.
The desire to deliver quality housing for all was behind another corporate innovation – offering full property renovations as an additional service via our sister company Cloud Renovations Ltd. To date, approximately 10 large-scale renovation projects have been completed, and many more are in the pipeline, from bathroom refurbishments to full-house renovations and extensions. It’s a further acknowledgement that clients have widely differing expectations; the one-size-fits-all services offered by some companies won’t always match specific requirements.
Sailing into calmer waters
The last ten years has been among the most turbulent in the housing market’s history. Brexit, a global pandemic and war in Europe have each impacted everything from inflation to cost-of-living pressures, while migration levels and minimal housebuilding have heaped further pressure onto an already overheated property market. We’re approaching the fourth general election in nine years, and it’s impossible to predict which manifesto promises will be honoured in terms of housing. As a result, it’s more important than ever to be able to rely on seasoned property professionals who understand the Newcastle market – especially when it bucks regional or national trends.
With ambitious plans to expand the sales department that first opened in 2021, James acknowledges the many people, clients, contractors and employees who have contributed to Cloud Estates’ various successes over the last decade: “We wouldn't be where we are today without your continued support. We're so grateful for the growth our business has seen in recent years, especially since moving to Heaton, and we put much of this growth down to the fantastic team we’ve built around us. We are very excited about what the future holds…”
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Life is often challenging, making it advisable to reduce stress levels at home
We’re less than halfway through the current decade, yet it’s already provided numerous shocks and challenges. The combined effects of war in Europe, a pandemic, a cost-of-living crisis, rampant inflation, mass strikes and political upheaval across all four Home Nations have made some people physically and mentally unwell with stress.
Our homes are meant to be sanctuaries, but many people are failing to fully harness their property’s stress-busting potential. We’ve put together six suggestions to reduce stress levels around the home, and many of these tips will also improve its appeal to buyers if you’re planning to market it this year…
Minimise clutter
Potential purchasers won’t be enthused by a messy home, and it won’t do your own mental health any good, either. Reduce stress levels by choosing fixed locations for daily clutter like paperwork, laundry and shoes. Ensure items are always put away after use (especially toys and gadgets), since empty surfaces are subconsciously calming. Minimising clutter also makes cleaning easier and increases your pride in your home, while knowing where to find objects simplifies finding them later.
Use aromatherapy
We’re not talking about classes here, but rather introducing pleasurable scents into corners of your home. Fragrances can transport you back to specific moments or places, and while you’re focusing on a pleasant aroma, your mind can’t simultaneously feel anxious. Scented candles, wax melts and reed diffusers are obvious choices, alongside citrus soaps and floral cleaning products. Grow herbs indoors and keep a vase of fresh flowers. Conversely, banish smelly shoes and over-ripe fruit, and empty the kitchen bin every day.
Deploy effective lighting
Dull lighting creates a depressing and gloomy ambience, yet too much light could seem harsh and oppressive. Hardwiring new ceiling lights in may be a false economy if you’re planning to move house, whereas lamps are portable and flexible. Their pools of brightness add character, making it easier to read, as well as cutting out stress-inducing eye strain or headaches. Full spectrum lighting stimulates the same serotonin release as sunshine – ideal for home offices or north-facing rooms.
Undertake light exercise
You don’t need to run a marathon to capitalise on exercise’s ability to reduce stress levels. Indeed, too much exercise could actually cause anxiety, especially if you become obsessed with personal bests or daily schedules. Focus on gentler activities like tai chi or yoga which suit your daily routine. Walking is arguably the best exercise of all, with the added benefits of being free and unlimited. Allow time to cool down after exercising, rather than rushing off to honour other commitments.
Banish technology from the bedroom
This is a hard sell in the age of smartphone addiction, but the health benefits of an analogue bedroom are widely recognised. When technology creeps in, it’s usually an excuse – alarm clocks will wake you up in the morning, and few late-night emails or WhatsApp messages require an immediate response. Banishing technology improves both the quantity and quality of sleep, and feeling well rested is vital if you want to reduce stress levels the next day.
Maximise comfort levels
There is a significant sensory difference between sitting on a hard wooden chair compared to a plush fabric one. This sums up the benefits of comfortable mattresses, furnishings and home office chairs. The latter are particularly important, with armrests and lumbar support vital to minimise musculoskeletal issues that may trigger their own anxieties. A well-sprung mattress with a soft protector can replicate the luxury of a high-end hotel suite, as well as helping to reduce stress levels at the end of a long day.
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The legal aspects of buying and selling a house may seem complicated, but Cloud Estates can help to guide you through the conveyancing process
Given the complexity of buying and selling property, it’s perhaps inevitable that a certain amount of industry jargon creeps into conversations between agents and our customers. At Cloud Estates, we try to keep things as simple as possible for our clients, but you’ll still hear us referring to concepts like the conveyancing process.
The conveyancing process describes the legal steps required to transfer ownership of a property from the seller to the buyer. It generally takes three to four months, or slightly longer when purchasing a leasehold property, which requires additional checks and documentation. Sellers also have to do some conveyancing, but we’ve focused below on the process of buying a property – the more complex and time-consuming side of the transaction. This is what a conveyancing expert will do for you…
- Examine documents.
Once you appoint someone to handle conveyancing, they’ll examine various legal documents and raise any queries which arise with the selling party’s solicitor. This happens behind the scenes and can take a while. That’s frustrating if you’re keen to complete quickly, but it’s necessary to ensure there are no nasty surprises, such as compulsory factoring charges.
- Arrange a survey.
Mortgage lenders rarely approve loans on properties without a survey. In England, it’s up to the buyers to choose how detailed they’d like their survey to be. There are five tiers, but a Level 2 RICS Home Survey or RPSA Home Condition Survey should be comprehensive enough for most property transactions.
- Conduct property searches.
This is another behind-the-scenes stage, where your solicitor conducts detailed legal checks to ensure the property you’re buying isn’t likely to give you any undue trouble. They’ll explore areas like flood risk, historic ownership and local council planning schemes. The cost of conducting these searches should be clearly stated up front, as part of the total conveyancing fee.
- Conduct a valuation.
Unless you’re a cash buyer, the conveyancing process will require a mortgage valuation on the property. A more complex version of the valuations Cloud Estates undertakes, this ensures any lender will have enough equity to underwrite a loan. Buildings insurance for the estimated value of the property also needs to be arranged, though you don’t need contents insurance yet.
- Sign-off.
Once your solicitor’s questions have been answered, they’ll ask if you still want to go ahead with the purchase. Reasons for pulling out might include a survey identifying structural issues, or the mortgage lender undervaluing the property. If you’re happy to go ahead, set a completion date and arrange to pay a non-refundable deposit (usually ten per cent of the property’s value).
Finally, it’s the day when you and the seller exchange contracts – through your solicitors, of course. This happens at a set date and time but might be reliant on other people in a property chain exchanging first. As soon as contracts are exchanged, you’re legally obliged to buy the property, while the seller can’t withdraw from the market or demand a higher price.
Also known as ‘moving day’ in many cases, this is the mutually agreed date when you transfer the balance of payment to the seller’s solicitors. In return, they release the keys for your home. It generally happens around midday on a Friday. Afterwards, there’ll be a few loose ends to tie up, such as your name being recorded as the property’s new legal owner at the Land Registry.
Whether you’re selling or buying, Cloud Estates is here to support and guide you through the conveyancing process. Get in touch with us for more information on how we can simplify the process of selling and buying property in Newcastle and across the north-east.
