Overview
The Lake District housing market is almost always buoyant in April. It’s the ideal moment for sellers to act. Properties look their best, with gardens decked in blossom and fresh foliage, and time is of the essence if the vendor wants to complete a sale before the summer holiday period.
This year there is even more activity than usual. Rightmove reports a 12 per cent increase in the number of homes for sale compared with a year ago. That trend is certainly true in the Lakes. We’ve seen 181 homes come to the market within a 10-mile radius of Windermere in just two weeks and, similarly, 170 properties go up for sale within 10 miles of Kirkby Lonsdale.
There’s no doubt that the spring selling season is in full swing. Much of the activity is in the sub-£600,000 sector. Many are holiday lets. Indeed, the majority of properties coming to market at all price points are holiday lets. Valuations are just about holding up.
Britain’s biggest building society, the Nationwide, reports that prices across northern England are up 1.7 per cent year on year. That’s a modest increase, below the rate of inflation, which means property has become cheaper in relative terms – a great incentive for buyers.
Outlook
So what’s driving the market and where might it go from here? I believe that much of the sales activity is down to changes announced by the Chancellor in his March Budget, which have yet to take effect.
They include an increase in capital gains tax and the removal of reliefs for furnished holiday lets, both from April 2025, and the removal of multi-dwelling stamp duty relief from May 31 this year. These announcements add to the uncertainty over the holiday let registration scheme.
Remember too that mortgage rates have risen – aggravating other cost-of-living pressures – that council tax for second-home owners in the area is likely to double over the next 12 months and that planning permission could become mandatory for change of use to a holiday let. If property owners were sitting on the fence, these headwinds may well have been the catalyst for them to make the decision to sell.
We normally see six to eight weeks of active property selling in the Lakes during spring and early summer followed by a lull over the school holidays before the market picks up towards the end of August. This year, however, events could disrupt this rhythm. The Euro 2024 football tournament and the Olympics are obvious distractions while a General Election, expected in the second half of the year, will slow or pause the market for the duration of the campaign.
The election may well be preceded by an Autumn Budget. We don’t know what impact this will have although there is speculation that the Chancellor will introduce stamp-duty incentives aimed at the bottom of the market.
Opportunity
There is a window of opportunity for buyers prepared to act now before these disruptions arrive. While affordability is still tight, property and mortgage market conditions remain stable, buyer choice is good and many sellers recognise that it is the right time to negotiate on price to agree a deal. Looming tax deadlines are also encouraging sellers to be realistic.
With so many properties available, buyers have the upper hand. They have more time to consider their options and look at everything that’s available. Having this thinking time often leads to a more secure purchase.
That said, the best houses in the Lakes will always be snapped up so it is important to be ready to view quickly, especially those homes finished to a high standard and in central honeypot locations. Properties outside the National Park usually take longer to sell.
Nationally, the average time it takes to sell a home now stands at 72 days, while it typically takes three to four months to make a purchase.
If you live out of the area, having the support of a property finder can be especially useful in an active and uncertain market like this. I have been in the industry for 13 years and have lived in the area all my life, giving me priceless local contacts and relationships. I have a wealth of industry connections and contacts in the wider property world and know the market in this area intimately.
If you are working with me, you have an expert on your side. I am independent of any estate agent and work for you, the buyer, concentrating solely on making your vision a reality.
I’d love to hear from you.
Gemma