HIGH DEMAND FOR PROPERTY IN BRACKNELL AND THE SOUTH EAST
With The Bank of England freezing inflation base rates at 5.25% for the third time in December after 14 consecutive rises, things are looking positive for the UK property market with many economic experts believing rates will start to decrease over the next 12 month.
This seems to have contributed to an increase in confidence amongst homebuyers, particularly in the South East. In the final quarter of 2023, Zoopla reported a 19% upturn in demand for property in the region, higher than the 12% increase seen across the wider UK. Similarly, OnTheMarket data revealed that 62% of active buyers in the South East were confident that they would purchase a property within the next three months.
Zoopla’s final House Price Index of 2023 recorded above average levels of new sales – up 17% on the previous year. Research from London estate agents, Benham and Reeves, indicated that Berkshire was one of the top four counties in England with a 9.2% increase in properties sold subject to contract between Q1 and Q4.
This looks set to continue throughout the coming year with the demand for property in Bracknell increasing as homebuyers are less constrained in their budgets and seek more value- and property – for their money.
One of the key drivers behind the demand for property in Bracknell is its strategic location. Situated just 25 miles west of the Capital, the once sleepy town is now a vibrant and thriving commuter hotspot with direct trains to London’s Waterloo in under an hour. Proximity to London, excellent transport links, and the presence of major tech corporations in the area – aptly nicknames the UK’s “Silicon Valley” – have contributed to the town’s growing appeal from working professionals and those looking for more value for money that London can offer.
Current Bracknell Property Performance
As lenders are beginning to offer 5-year fixed-rate deals closer to 4% compared to last year’s average of 6.11%, property experts are reporting some promising buyer and seller activity in the UK property market which is impacting property prices.
Latest market data from Zoopla revealed increases in buyer demand (12%), number of sales agreed (13%) as well as stock of property for sale (22%) which suggests a positive outlook for the year ahead.
Similarly, Rightmove data highlighted the number of potential buyers contacting estate agents about property for sale in the first week of 2024 was 5% higher than in the same period last year. Similarly, the number of properties coming to market is 15% higher than at the start of last year, following a record number of sellers launching on Rightmove on Boxing Day.
So, what does Bracknell’s property market have to offer the expanding homebuyer market?
Analysis of Land Registry’s latest data revealed that despite a slight drop in property prices felt across the UK in November 2023, Bracknell’s property prices were still an impressive 14% above when compared to the same month in 2019. This reinforces that, outside of the abnormal trajectory the property market experienced since the pandemic hit, property in Bracknell presents a worthy investment for homebuyers with a long-term view.
Zoopla data confirms this, revealing the average sold price of property in Bracknell in the last 12 months is £424,302, up 8% from the £392,729 figure reported in our 2023 Bracknell property market analysis, rising in conjunction with current market demand and an increase on pre-pandemic figures. The long-term performance over the last five years has been optimistic in the face of economic turbulence and market activity seems to be recovering which will stimulate property price growth further.
It should also be noted that the Bracknell property market remains a favourable, affordable alternative to the surrounding areas. Despite impressive long-term growth, property prices in Bracknell are almost 43% less than the average sold price of London property which topped £734,248 in the last 12 months. This has proved attractive to homebuyers returning to the property market having held back during a difficult economic climate in recent years.
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BRACKNELL PROPERTY MARKET FORECAST 2024
With Rightmove data noting the majority of transactions in the South East region within the last year were for apartments for sale – driven largely by working professionals seeking affordable property within London’s commuter belt – long term forecasts for the region are optimistic.
Savills, like many other industry experts, estimates overall price drops of -3.5% this year as the market stabilises, but in the longer term, forecast year-on-year price increases between 3 and 5.5% for the South East between 2025-28 – 16.7% accumulatively. The region is predicted to outperform London’s notoriously resilient market which is predicted a 13.9% accumulative increase in the same timeframe. JJL’s 2024 – 2028 forecasts have a similar outlook, with a slight decrease of 3% this year, then subsequent year-on-year increases between 4% and 5.5% giving a cumulative increase of 14%.
Property portal Zoopla’s January House Price Index highlights that price falls are already beginning to slow, as market activity begins to recover from high rates and low stock levels.
Despite the figures, London will continue to pull in purchasers looking for thrilling city centre living whilst Bracknell poses an attractive and affordable alternative for those wanting to be in close proximity to the city and all its amenities.
Overall price growth in the Bracknell property market continues to be higher than Greater London, highlighting the potential within the market. With most properties in the South East already much more affordable than London, these predictions demonstrate the strength that property for sale in Bracknell could have in 2024 as purchasers continue to look for property outside of major cities which offer more bang for their buck.
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