Reasons to be positive about the housing market – and what it means locally

Reasons to be positive about the housing market – and what it means locally

After a challenging few years, there are finally some encouraging signs emerging in the UK housing market. While we are certainly not seeing a return to the rapid price growth of previous years, the market is becoming more balanced – and that promises to be good news for buyers, sellers, landlords and tenants across Portsmouth and Southsea.

Nationwide reported that UK house prices edged up 0.2% in August, the first monthly increase since April. Meanwhile, the latest RICS survey suggests the wider slowdown may be reaching a turning point, with buyer enquiries at their strongest level since January.

For buyers, perhaps the biggest positive is choice. There are currently plenty of properties available, giving purchasers more opportunity to compare homes and negotiate. In Portsmouth, the median asking price is around £280,000, with more than half of properties currently marketed below £300,000.

For sellers, the message is encouraging too. There are still buyers out there. But realistic pricing remains crucial. In Southsea, recent completed-sale data shows prices have held up reasonably well, while demand for well-presented, correctly priced homes remains evident.

Landlords continue to benefit from strong underlying tenant demand. Although rental growth has moderated, Portsmouth rents increased by 2.2% year-on-year to an average of £1,367 in July. The slower rate of increase may actually help create a healthier, more sustainable rental market.

For tenants, moderation in rental growth is welcome news, particularly for those saving towards a deposit. And with more properties available to rent, there can be greater choice when looking for the right home.

Perhaps the biggest positive of all is that the market is moving towards normality. For buyers, that means greater negotiating power; for sellers, more chance to find a pool of motivated purchasers; for landlords, continued rental demand; and for tenants, signs that rent inflation is becoming less extreme.

Here in Portsmouth and Southsea, local conditions will always differ from national headlines. Property type, street, condition and price all matter enormously. But the latest figures suggest there are good reasons for cautious optimism – and, for those who have been waiting for the right moment to move, the market may be becoming a little easier to navigate.

If you are an owner, seller, buyer, landlord or tenant and you have a property-related query, we’re here to help. You can find us on 02392 826731 or visit www.chinneckshaw.co.uk

By Lizzie Burt – Associate Director – Chinneck Shaw