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Rising Trends Seen in Property Exchange Prices

Exchange prices for properties have witnessed an upswing, recording an average hike of 3.8% over the past year. Furthermore, since 2019, there’s been an impressive 22% spike, equating to a compound annual growth rate (CAGR) of 4% annually, as reported by the property data firm, TwentyEA.

This new data from TwentyEA also highlights an intriguing consistency: the disparity between initial listing prices and the final exchange prices in 2023 mirrors the trend observed four years ago.

Data also indicates that in this year alone, exchanged property prices in four of the ten English regions have experienced a growth rate of a minimum of 5% when compared to the previous year. Interestingly, a similar trajectory is evident in Northern Ireland and Scotland.

A noteworthy point is Northern Ireland registering the pinnacle of this growth at 8.4%. Meanwhile, regions including the South West, inner London, the East of England, the North West, and Scotland all surpassed the 5% growth mark.

An examination of all UK regions presents a positive scenario. Each region observed at least a 3% hike, with Wales and the West Midlands being the exceptions. The West Midlands, in particular, had the most modest growth, standing at 2.5%.

In terms of instruction prices, Northern Ireland yet again topped with a 7% annual increase. Closely following were the North West and Scotland, both recording 5.7%, and Yorkshire and the Humber at 5.1%.

To put things into perspective, for the average property, the past year’s growth translates to a value augmentation of £13,000. The increment since 2019 is a staggering £64,000.

Further, the average original instruction asking prices have ascended by 2.8% in the last year, with a cumulative increase of 24% since 2019. This also corresponds to a CAGR of 4.4% each year.

Katy Billany, the executive director of TwentyEA, remarked, “Despite the numerous gloomy headlines we’ve read over the last few months, instruction prices and exchanged prices have continued to rise across the UK with four out of the 10 regions in England all seeing growth in exchanged prices of 5% or more, a trend also evident in Scotland and Northern Ireland. This demonstrates the strength of buyer demand which is holding firm despite the backdrop of high inflation and rising interest rates.”

She also touched upon a positive development. The incidents of deals collapsing, termed as ‘fallen throughs’, have decreased by over 6% since March of this year, resonating with the levels seen pre-pandemic in July 2019. Another metric, the ‘time to exchange’, has consistently shortened since February, settling at 113 days in July.

To add, Billany mentioned, “Looking regionally at ‘fallen through’ volumes over the last year, only Scotland experienced an increase. Nationally, the lowest priced properties – those under £200,000 – are now significantly less likely to have a fall through than this time last year. It’s also very promising to see the ‘time to exchange’ continue to fall and we remain hopeful this continues.”