In
an age of sensational headlines, the UK property market—particularly in Northampton—often
finds itself misinterpreted.
While
we cannot ignore the challenges of higher mortgage rates and shifting buyer
preferences, it is vital to appreciate the broader context to understand what's
happening in the Northampton property landscape.
The
UK housing market is currently at a junction, characterised by its lowest house
price growth in 12 years and a rising number of homes for sale. Higher mortgage
rates have made a sizable dent in market activity, affecting everything from
buyer demand to the volume of property sales.
Don't
get me wrong; Northampton properties are still selling (21.7% more Northampton
homes sold per month in 2024 compared to 2023), but not at the rate or level
they were in 2021.
Therefore,
correctly pricing your Northampton property for sale cannot be underestimated.
Let me explain the reasons behind the current state of play nationally and,
finally, the exact story of what is happening now (and in the future) in Northampton.
The Importance of Correctly Setting an Asking Price for Your Northampton
Home
Putting
your Northampton home on the open market at an asking price that is too high
can considerably deter potential buyers and limit the number of people who come
to view it. Buyers always have a budget in mind, and if your property is priced
above comparable homes in your area, it's likely to be filtered out of search
results and ignored.
Even
if your property gets some attention, the inflated price can signal that you're
not serious about selling or unwilling to negotiate. This can result in your home
languishing on the market, which could necessitate future price reductions.
Over
time, buyers will begin to be suspicious that something must be wrong with your
property, irrespective of its high price.
Thus,
setting a realistic, market-aligned asking price for your Northampton home is vital
for attracting a broader pool of qualified buyers and facilitating a quicker,
more lucrative sale with a higher chance of actually moving home.
Remember,
looking at an independent analysis by TwentyEA and Denton House Research of the
1.1m house sales in the whole of 2023, if the property sells (Sold STC) within
the first 25 days of it going on the market, the chances of that sale agreed
exchanging and completing (i.e. you moving) is 94%, while if it takes more than
100 days to achieve a sale (often because the initial asking price has been set
too high and time is wasted), the chances of that sale subsequently exchanging
and completing drops to 56%.
The Impact of More Homes for Sale
The
UK property market looks promising. Nationally, this year the number of
properties sold (STC) was 1,045,620 (to the end of October), 8% higher than the
same sales figure to the end of October 2023 (when it was 912,919).
However,
there are 724,312 properties for sale in the UK, which is 9.4% higher than at
the same time in October 2023, when it was 662,829. It must also be remembered
that the figure was 506,614 in October 2022 and 438,005 in October 2021.
There
are 65.4% more homes for sale in the UK today compared to 3 years ago.
Just Only Half of all UK Homes Put on the Market, Sell and Move
Since
1st January 2024, of the 1,222,925 homes that left UK estate agents'
books, 654,081 (53.5%) exchanged and completed contracts (meaning the homeowner
moved and the estate agent got paid). The remaining 568,844 (46.5%) were
withdrawn from the market, unsold. In essence, you have a flip-of-the-coin
chance of selling, and homeowners moving.
Focus on Northampton
In
2021, there were an average of 617 new Northampton properties coming onto the
market and 594 Northampton homes sold (STC) each month. The average number of
homes for sale in 2021 was 1,898.
In
2022, there were an average of 654 new Northampton properties coming onto the
market and 502 Northampton homes sold (STC) each month. The average number of
homes for sale in 2022 was 1,921.
In
2023, there were an average of 695 new Northampton properties coming onto the
market and 464 Northampton homes sold (STC) each month. The average number of
homes for sale in 2023 was 2,629.
2024
YTD, there has been an average of 731 new Northampton properties coming onto
the market and 564 Northampton homes sold (STC) each month. The average number
of homes for sale in 2024 was 2,744.
The
volume of properties for sale in Northampton has increased by 44.6% over the
past three years. While this surge in available properties hasn't significantly
impacted house prices, it is likely the main reason Northampton house price
growth has been kept in check.
With
more Northampton homes on the market, local buyers now have greater choices and
can be more discerning. This often leads to balanced negotiations, and so can
moderate rapid house price increases. This dynamic ultimately benefits buyers
and sellers, balancing the market and providing fair value across transactions.
Northampton = NN1-NN7.
The Costly Trap of Overvaluing: How It Could Affect Your Northampton
Property Sale
Starting
with a realistic asking price is the most sensible approach if you want to sell
your property in Northampton. Overpricing (or, as it's called by some over valuing),
where the asking price is set too high, may be tempting, but it often leads to challenges
that can delay your sale. Once a property is listed, it has a single chance to
captivate buyers as a new instruction—bringing excitement and immediate
interest. Miss that window with an overinflated price, and your dream home
could slip through your fingers while you wait for a sale that never comes.
In
Northampton, we’re seeing an increase in properties priced way above their
actual market value—a trend often driven by estate agents focused more on the
number of listings than on making actual sales. This approach can harm many Northampton
homeowners, initially setting their hopes high with a lofty price, only to
later reduce it after losing valuable time and reducing the chances of actually
selling their home and moving (as discussed above). This can be disheartening
for many homeowners looking to move, especially if it means missing out on
another property they have their eye on.
Research
from Which reveals that properties priced correctly from the outset sell faster
and often achieve a better final price than those that start high and then
undergo reductions. Overpricing by as much as 10 to 20% of your property’s
actual value can leave it lingering on the market, losing the early buyer
attention that often results in successful sales.
Further
complicating the issue is that some estate agents incentivise their staff to
prioritise listing properties rather than selling them, pushing prices not in
line with the market. With the Northampton property market stabilising, setting
a realistic price has become even more crucial in attracting serious buyers and
ensuring a timely sale.
Outlook for the Northampton Property Market
While
dramatic house price rises aren't anticipated in Northampton’s immediate
future, there’s no significant drop expected either (for more, see my previous
articles). Demographic and economic shifts—such as an ageing population, more
flexible work arrangements, a strong labour market, and sustained
immigration—could contribute to renewed market activity in the coming years.
Additionally, base rates are expected to dip below 3.5% by the end of 2025,
likely impacting buyer behaviour more noticeably next year.
The
British property market faces some challenging conditions, with effects of the
budget still to be seen and those fuller mortgage rates affecting affordability.
However, the trend of above inflation pay rises that we have seen in the Country
over the last 12 months could make homeownership more accessible for many more
people in the medium to long term. However, combined with a potential drop in
mortgage rates in 2025, wages continuing to outstrip inflation and demographic
shifts, these changes could encourage an even healthier and more balanced
property market in the next 12 months?
Understanding
these trends helps both Northampton buyers and sellers make more informed
decisions. Though the market may seem under strain now, Northampton homeowners
who set realistic asking prices will be in a strong position as the market
looks to become more accessible in the near future.
If
you're in Northampton and considering a move, reach out for a free,
no-obligation valuation or market appraisal of your home. I aim to get the best
possible price for your property, with advice tailored to give you the greatest
chance of a successful sale in today's market.
