Lomond Insights: Manchester property market Q3 review
As we leave summer and head towards what is typically the busiest time of the year in the Manchester property market, we look back at the trends and statistics of 2023's third quarter. Property prices continue to change, and the levelling out of interest rates have seen varying moods in the property market.
The slight slowdown in our sales market should settle as buyers adjust to higher interest rates and the expected fall in mortgage rates starts to filter through. Although prices have softened somewhat, there have been no significant slides or real drops in activity and the rate of sales being agreed is holding up.
With a constant flow of people relocating to this area, there is a market out there for switched-on buyers. Stock levels are higher than they have been in some time, providing choice for the healthy intake of buyers who have been registering. Conversion rates have also improved, indicating there are more genuine, committed vendors and sellers in our market.
Our first-time buyer market has been very active, showing a keen desire to get a footing on the property ladder but they are having to evaluate what they can afford and possibly compromise.
In a price sensitive environment, managing vendor expectations with expertise and experience is key. Higher interest rates have meant a substantial shift in buying power and buyers are hesitant to overstretch themselves.
Around a third of properties now sell in 30 days, down from 50% twelve months ago, as buyers take time to consider their decision. Although a gap in expectations between buyers and sellers is prevalent, we are seeing sensibly priced properties receiving multiple viewings and going for above asking price.
Jason Watkin, Regional Chief Executive Officer, said: “With interest rates soon to peak, buyer confidence and sentiment should improve as we come into autumn and enter a period of greater stability.”
Rents are continuing to rise, not yet limited by the affordability ceiling and supported by our region’s economic diversity, high employment and large-scale investment. We have a high percentage of tenancy renewals as renters fear the open market.
Our student market is one of the most undersupplied in the UK, witnessing a shortage of 23,186 beds1. An increase in renewals has further constricted supply and supported significant rent rises.
There is an increasing institutional appetite and investment in the sector, with significant opportunities for both institutional and private landlords. With the prevailing issue of lack of stock, we are extending our reach, letting new development properties in Preston, Liverpool and Stoke-On- Trent, giving our landlords a wider range of opportunities and returns on investment.
HOW WE PERFORMED IN Q3
Despite fluctuations in the current markets, our property experts continue to deliver brilliant service to our thousands of customers.
While we continue our efforts to grow the company even further, our teams produced the following numbers in Q3:
SALES (per branch)
- 48 new instructions
- 334 applicants
- 33 contract exchanges
- 7 applicants per property
LETTINGS (per branch)
- 22 new instructions
- 553 applicants
- 26 applicants per property
- 65 new tenancies agreed
You can read the full summary of the Manchester property market below, or click here to learn how Lomond is transforming the UK property market, notably in the investment sector.