Lomond Insights: Yorkshire property market Q3 review
As we leave summer and head towards what is typically the busiest time of the year in the Yorkshire property market, we look back at the trends and statistics of 2023's third quarter. Property prices continue to change, and the levelling out of interest rates have seen varying moods in the property market.
Demand is high, with the student market overspilling to areas outside the main student area, where lower purchase prices make good yields achievable. Three to six-bed houses typically provide the best returns, however there is a rise in landlords buying two-bed flats due to fewer planning restrictions.
Our Sinclair student brand manages around 330 properties and 1,300 student clients, approximately half of the York student market. We enjoy a stable landlord base, and operate a slick process, having been in the market for a decade.
Planning restrictions on new build property in the area mean that the student market will continue to be undersupplied, and high rents in the city centre provide an excellent investment opportunity.
Location is critical, as it dictates demand and rent, and we would advise our landlords to refurbish the property to a high standard within any void period, as tenants will typically look after a high quality property. In the rest of the rental market, demand is slightly down, however rents are steady and rising, with stock levels at an all-time high.
Although we have seen some landlords selling up in areas such as Hull, Wakefield and Pudsey, investment levels in other area remain strong, with high yields available, supported by strong rental growth. People with money are still looking to invest in the property market and will be supported by our new team helping investors to focus on the right places to generate the best returns.
Demand is starting to bounce back as we move into autumn, following the usual seasonal summer downturn, although there is still some hesitancy in the market.
However, it is not the market the media makes it out to be. Instructions and asking prices remain high, exchanges are on target and people still want to invest. Buyers who are reliant on mortgages are particularly cautious and fall through levels are slightly higher than usual. However, the market is strong for cash buyers or those on a low loan-to-value.
With expectations that interest rates will soon come down, some buyers are holding off, but for others there is an acceptance that mortgage rates are back to where they were a few years ago. They are going ahead with the move with the view that if mortgage rates improve then it will make things easier down the line.
HOW WE PERFORMED IN Q3
Despite changes in both the sales and lettings markets across Yorkshire, our teams of property experts continue to deliver brilliant service to our thousands of customers.
While we continue our efforts to grow the company even further, our teams produced the following numbers in Q3:
SALES (per branch)
29 new instructions
15 contract exchanges
6 applicants per property
LETTINGS (per branch)
24 new instructions
16 applicants per property
81 new tenancies agreed
Martin Elliot, Chief Executive Officer, summarised: “Although it is certainly a buyer’s market, prices are for the most part realistic, with a general alignment between buyer and seller expectations.”
You can read the full summary of the Yorkshire property market below, or click here to learn how Lomond is transforming the UK property market, notably in the investment sector.
¹Dataloft, Land Registry, DLUHC, based on properties sold in the year to end April 2023, ²Lomond, ᶟLand Registry, DLUHC and Dataloft Rental Market Analytics, 4Leeds City Council, 5BRES