IS THE ISLE OF WIGHT PROPERTY MARKET SET FOR GROWTH IN 2024?

These have been a turbulent couple of years for the property market, and the Isle of Wight has been far from immune. For example, December 2022 saw the average value of a home on the island decrease by £4,000 and prices continued to fall throughout 2023. The reasons for this were twofold. The most significant of these was the climate of rising interest rates and its impact on the mortgages that lenders were prepared to offer. This was also set against the backdrop of the cost of living crisis. Quite simply, many people were struggling financially and unable to contemplate moving, hence a relatively stagnant market. However green shoots are starting to appear, albeit slowly. According to the Office of National Statistics prices now show signs of stabilising, and even moderately rising, for some forms of property, most notably semi-detached homes. While this is some way from the kind of property inflation we’ve seen in the past, it’s a welcome sign for many. The rental sector, on the other hand, presents a markedly different picture. Here rents are rising rapidly with the average monthly rent as of February 2024 standing at £807 a month, up 5.8% from the £762 figure a year earlier. Much of this is down to shortage of supply exacerbated by the all-too-familiar trend for properties to become holiday lets instead of long-term accommodation.

As more attractive mortgage rates seem to be gradually returning, this might conceivably see a number of current renters, at least those who can raise a reasonable deposit, considering buying a property instead. One of the great strengths of the Island’s property market is that the prices are lower than the South of England in general. For example, figures on Rightmove show that the average house price over the last year was £364,459 compared with £458,594 in Sussex. So, as the market comes to life again it could be that more people might be considering moving across the Solent. But, and it is quite a big but, there are always going to be situations where an offer is made and a sale seems to be progressing but the buyer suddenly gets cold feet. Typically, the reasons for pulling out include mortgage or survey issues. Another one, particular to the Isle of Wight may be having second thoughts about having to catch a ferry to the mainland. There is good news for sellers, however, should they experience a house sale fallen through. Because of a more buoyant market generally, they should find a home buying company willing to step in and purchase at short notice. This also has the benefit of being completed quickly and with none of the hold-ups that conveyancing can sometimes involve. So, to conclude, there are many very positive signs for anyone hoping to sell their house over the rest of 2024. If we’re also lucky enough to have a good summer there may even be more potential buyers among the visitors to the island and who really do see it at its best.