Moving Advice - Reside Bath

The Renters Rights Bill: What We Know, What is to Come, and What Might Change?

Posted on 26/03/202504/07/2025 by prateek

The UK rental market is no stranger to change, and with the Renters’ Rights Bill (RRB) on the horizon, landlords, tenants, and letting agents need to stay informed as those who do not keep up to date now, will be left in the metaphorical dust after the bill is passed.

Nothing is set in stone until the bill receives Royal Assent, so take the following as purely what we know for now, rather than gospel. Got it? Good! So, without further ado, here’s what we know so far—and what it could mean for the rental market landscape in the months to come.

Current Rental Demand & Market Trends

Before we step into the Renters Rights Bill, it is important to understand the current market landscape. Here is what we know –

Across the UK, there has been a ~30% drop in rental demand from tenants since January 2024.
Despite this decline, rents continue to rise due to a lack of available rental stock.
With rents up and mortgage rates down, now could be a favourable time for property investment despite the turmoil caused by the RRB.

New Sanction Checks – Effective 14th May 2025

Letting agencies will be required to conduct sanctions checks on all landlords and tenants under the Sanctions and Anti-Money Laundering Act 2018. If a guarantor is paying rent directly or interacting with the agent/landlord during the tenancy, they must also undergo checks, a big change from days past.

These checks will be mandatory for all letting agencies in the UK, agencies that do not comply will face fines.
Third-party companies such as Goodlord can manage these checks for tenants and guarantors as part of the referencing process. Check with your local agency how they intend to undertake these checks, as this might differ.
One major change is that AML checks will be conducted on all new landlords upon instruction.

For the official government guidance, visit: Sanctions Guidance for Letting Agents.

The Renters’ Rights Bill – What’s Coming?

After what feels like an age, we now have some potential dates to put in place. Firstly, the Bill is expected to become law between July & October, with an implementation date shortly thereafter, likely in January 2026. We are expecting the changes to take effect immediately, there will be no grace period, meaning all fixed-term Tenancies will become periodic overnight.

Key Changes Include:

Impact on Letting Fees – With fixed terms disappearing, renewal fees will all but disappear. A sliding scale fee structure may be necessary if tenants leave shortly after starting a new Tenancy. This is something we are monitoring closely and will update all of our current landlords as and when we have more information. For landlords outside of our network, do check with your letting agent too and make sure to keep in contact with them about the RRB over the coming months.

Applies to Assured Shorthold Tenancies (ASTs) Only – Corporate lets remain unaffected.

A New Single Ombudsman – Landlords must register with a centralised Ombudsman or face fines. Agents are expected to be allowed to register on behalf of Managed Landlords.

New Digital Portal – A government-run landlord portal will be introduced for compliance monitoring.

Bidding Wars Banned – It will become illegal for tenants to offer over the asking rent, regardless of their situation. We are currently anticipating this could lead to landlords pricing higher initially before adjusting down. However, advice about this approach will be given as and when the time comes. It is not something we are expecting to recommend as you may end up pricing out a lot of your target demographic.

Anti-Discrimination Measures – Landlords cannot refuse tenants based on family status, children, pets, or benefits. For most landlords, this won’t change anything, but it is something to be made aware of.

Advance Rent Restrictions – The first rent period cannot be an advance payment, but loopholes are being debated. Our advice? Avoid creative workarounds – they are unlikely to hold up in practice and could well result in fines.

Rent Reviews & Inflation – Rent increases will likely have to align with inflation. Tenants will have easy access to tribunals to challenge hikes beyond this threshold at no cost to themselves going forward.

What Happens Next?

We’ll be keeping a close eye on updates, with more details expected in the coming months. Our MARLA-qualified colleagues are attending many Propertymark conferences over the coming months where more information will be available to us and will pass relevant details on to landlords and tenants as and when is suitable.

As we have stated, until the final bill is produced, everything remains hypothetical. But one thing is certain: change is coming, and preparation is key. If you have any questions do get in touch with us. We will help you as well as we can for now. We are planning on creating plenty of videos and blogs over the coming months about the RRB so be assured we will not be leaving anyone in the dark.

For expert guidance on Renting, Letting, Buying or Selling property in Bath, contact us today.

To view our latest Sales Properties in Bath, click here – Properties for Sale in Bath (residebath.co.uk)

To view our latest Rental Properties in Bath, click here – Properties – Reside Bath

To Read Previous Renters Rights Bill Articles, click below:

https://residebath.co.uk//20241003/renters-rights-bill-what-does-it-mean-for-you/

https://residebath.co.uk//20240913/renters-rights-bill-update-what-bath-landlords-need-to-know/

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What happened in 2024 and what is going to happen to the market in 2025?

Posted on 08/01/2025 by prateek

As a local lettings and estate agent in Bath, it is crucial we take some time at the beginning of the year to pour over last year’s statistics and take a view to what is to come in 2025. Analysing the 2024 property market locally, here in Bath, and nationally allows us to make some predictions for what we think will happen to the property market in 2025.

In 2024, the UK property market recorded 1.2m homes sold subject to contract (SSTC). This represents a 15% increase when compared to 2023, where 1.06m homes went SSTC.

The average price of a property SSTC in 2023 was £354,981 and the average sale agreed price was slightly higher at £361,529. The number of transactions has significantly risen, while the average price paid stayed around the same. That means that while house prices have not really risen, the number of UK homes that sold did significantly. Remember, the best bellwether of the health of the UK property market is not necessarily UK house prices but the number of homes sold.

So, what were the key drivers in this surge?

FALLING MORTGAGE RATES
Lower interest rates made borrowing more accessible. This in turn encouraged buyers who may have been previously hesitant at the higher mortgage rates.

WAGE GROWTH
Rising wages have given potential buyers greater financial confidence, enabling them to consider property purchases.

LOW UNEMPLOYMENT
A stable job market gave a sense of security to buyers, allowing them to make investments.

CHANGING PREFERENCES
Post pandemic adjustment in peoples personal and work lives have been key players in what people want out of a home. A few years ago when Work From Home was encouraged or compulsory, people wanted more space and didn’t have to worry about the commute time. Now, as more people are pushed back into the office, there is a shift again into people needing to move closer to their employers office.

Turning our attention to the local level here in Bath, it is important to recognise that local markets can behave differently from the national trends. In 2023, 1,919 homes sold in Bath for an average of £564,000 at an average of $482/sq.ft. Whilst in 2024, 2,183 homes sold at an average cost of £580,000 with an average of £472/sq.ft.

This is an 11% increase in transactions. So, what for 2025?

LOCAL INFLUENCES SHAPING THE MARKET:

Baths property market doesn’t exist in isolation, it is shaped by a range of local factors that are often similar yet different when compared to the national trends. Changes in employment levels, ongoing infrastructure developments and shifts in the demographic profile all impact the market. Regional policies can also influence market activity. Understanding these nuances is crucial in making an informed decision.

As we move into 2025, the property market here in the UK shows continued promise. Evaluating your property’s position within the Bath market could make all the difference in navigating opportunities or mitigating challenges in the year ahead. While 2024 was strong, it’s critical to go beyond the headlines. Local insights often reveal opportunities that broad trends don’t capture.

The Key to Selling – Realistic Pricing

Looking at the statistics above, over half of the properties listed for sale in Bath go on to sell. This highlights an essential truth about the Bath property market: pricing your home realistically is the single most crucial factor in securing a successful sale. Many estate agents are tempted to overprice properties to win your business, but this approach can significantly hinder your chances of selling, especially in a competitive market like Bath.

Research reveals that properties listed at the right price from the start are far more likely to sell quickly and successfully. For example, homes that sell within the first 25 days of being listed have a 94% likelihood of reaching completion and ensuring the homeowner successfully moves. However, if a property lingers on the market for over 100 days, if the homeowner does agree on a sale, the chances of that sale going on to exchange and complete (i.e. the homeowner moving) plummet dramatically to 56%.

As an experienced local property agent in Bath, we understand the intricacies of our market and can provide honest, expert advice about your property’s value. We aim to help you set a realistic asking price that maximises your chances of selling while achieving a fair and competitive market value. I analyse local market conditions daily and stay up-to-date with shifting trends, ensuring your home is priced to sell – not to sit on the market.

If you’re eager to move and want a reliable, professional approach to selling your home in 2025, we’re here to help. Let’s work together to make your property stand out in Bath’s market, attract motivated buyers and ensure a smooth sale from start to finish. Get in touch today for tailored advice and a strategy to sell your Bath home.

Bath House Sales Up 14.5% on 2023 – What does this mean for the local market?

Posted on 05/12/2024 by prateek

The number of agreed UK property sales up to the 22^nd of November 2024 is 18% higher than a year ago. Breaking this down further, as of 22^nd November 2024, 1,009,340 homes were sold subject to contract (SSTC), an 18% increase from the number of homes SSTC in the same period of 2023. The average UK selling price has also significantly risen, reaching £361,000 compared to £326,000 in 2023, an 11% rise.

This doesn’t mean house prices have risen by 11%. Across the country, there has been a shift and more high-value properties have been selling this year compared to last. It is due to this factor that using £/sq.ft is a better judge of house price increase. The pound per square foot has risen only by 2.7% over the last year, climbing from £331 to £340 (which is in line with the major house price indicators).

A BUYER’S ADVANTAGE –

Sellers currently face a market where realism is the key to a good, and fast, sale. As of the 22^nd November 2024, 2,061 Bath homes had been sold STC, a 14.5% increase from the 1,800 homes sold in the same period last year. The average Bath selling price has risen slightly, reaching £586,652 in 2024, compared to £562,066 in 2023 (a rise of 4.3%).

The £ per square foot on the homes sold STC for Bath has been £472 per square foot in 2024, compared to £482 per square foot in 2023.

In 2023, 59.64% of Bath homes that came to market were successfully sold (completed and exchanged). In 2024, that figure has slipped to 58.94%. This change reflects buyer expectations and affordability shifts, emphasising the need for careful pricing strategies. (Bath – BA1/2 – 1^st Jan to Nov 22^nd).

National figures showed that 52.96% of properties were sold (exchanged and completed) in 2023, only slightly improving to 53.62% in 2024.

If you think about it, you have just over one in two chances of selling if you put your home on the market; therefore, accurate pricing is more important than ever, but it isn’t the only factor. Homes that stand out in today’s market often do so because of exceptional marketing. Virtual or video tours, high-quality photography, and targeted social media campaigns are no longer optional—they’re essential. For sellers looking to maximise interest and achieve a strong price, presenting their property in the best possible light is a non-negotiable step.

BATHS UNIQUE MARKET DYNAMICS

Bath’s property market has always had its quirks, and this year has been no exemption. Different postcode areas are experiencing varying levels of activity. In some areas of the city (and villages), homes are selling quickly, while in others, buyers have more room to negotiate, whether on price, fixtures, or even completion dates.

This means that flexibility can be an asset for buyers. Expanding your search radius or considering properties slightly outside your initial criteria could reveal opportunities that others have overlooked. For sellers, understanding these local variations is critical to setting the right price and crafting an effective marketing plan.

A Balanced Perspective: The Seller-Buyer Dynamic

It’s worth remembering that over four out of five sellers are also buyers. This dual role often means that what might be perceived as a loss on one side of the transaction can be recouped on the other. A slightly lower sale price on your current property may open the door to negotiating a better deal on your next purchase.

External Factors Shaping the Bath Market

No property market operates in isolation, and Bath is no exception. National and global trends will inevitably influence it.

That said, Bath’s property market has shown resilience in the past, which is likely to continue. While challenges remain, stabilising mortgage rates and a steady economy offer hope for a more active market in the coming months.

Final Thoughts

As Bath’s property market moves into 2025, success will hinge on understanding the current dynamics and being prepared to adapt. For buyers, this means having your finances in order and being ready to act quickly when the right property comes along. For sellers, setting a realistic asking price for your Bath home ensures your property is effectively marketed from day one.

The journey requires a thoughtful approach, whether buying, selling or keeping an eye on the market. There are both opportunities and challenges ahead – but with the right strategy, the path forward is clear.

What’s your perspective on Bath’s property market? Have you noticed similar trends, or do you see things differently?

To view our latest Sales Properties in Bath, click here – Properties for Sale in Bath (residebath.co.uk)

To view our latest Rental Properties in Bath, click here – Properties – Reside Bath

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Bath Properties are selling, on average, in 55 days.

Posted on 19/11/2024 by prateek

Are you a Bath homeowner or Landlord looking to sell in 2025?

If the answer is yes, then let us have a look at, on average, how long it takes for you to find a buyer for your Bath property and how long the solicitors will take to help get you moved in.

Independent research from Denton House shows that in the last 12 months, looking at the 1.06m properties sale agreed and the 816k properties exchanged, on average it has taken 73 days from the property coming on the market to the property becoming sold subject to contract (SSTC). This is up 6 days from the 12 months ending in June of this year.

From this point, it has then taken 113 days from the sale being agreed to completion. This is an improvement on the 117 days for the 12 months ending June 2024. The journey is a long one and not guaranteed as nationally, only 53.6% of UK homeowners who placed their homes on the market in 2023/24, have sold and moved. The remaining 46.7% have come off the market unsold.

STEP 1 – FINDING A BUYER

The first stage is to engage an estate agent (naturally, we’re here to assist) who will work with you to develop a pricing and marketing strategy tailored to attract the right buyer for your situation.

Recent data shows that over the last 3 months, a property here in Bath has taken an average of 55 days to reach an agreed sale STC. However, the bath market is far from uniform and each area in Bath has its own micro-market where it can be longer or shorter, remember this is an average.

On top of this, every ‘type’ of house also reflects different data. Let’s break it down.

(Bath centre plus a 3-mile radius).

Under £100k – 10 days
£100k to £200k – 62 days
£200k to £300k – 41 days
£300k to £400k – 65 days
£400k to £500k – 60 days
£500,000 to £1m – 53 days
over £1m – 76 days

STEP 2: INSTRUCTING SOLICITORS AND MORTGAGE BROKERS

Here at Reside Bath, we have our own list of recommended solicitors and mortgage brokers that we can get you in contact with. As the seller, your solicitor will begin preparing the legal documents for your property with your input and then forward this all to the buyers solicitor.

STEP 3: LEGAL WORK AND SURVEYS

After receiving the paperwork, your buyer’s solicitor will request local searches from the local authority and/or land registry to ensure there are no planned developments that could impact on your property. These searches can take a few weeks to complete as during this time the buyer’s solicitor may raise some questions with your solicitor. Simultaneously, a surveyor will inspect your property to confirm to the buyer that it is structurally sound and valued at the correct purchase price.

STEP 4: EXCHANGE OF THE CONTRACTS

Once the mortgage, the survey and the legal paperwork are all cleared and have come back without any issues, both the buyer and the seller can sign the contracts, leading to the ‘Exchange of Contracts’ between solicitors. At this stage, the buyer pays a non-refundable deposit, legally committing both parties to the sale. There is now one last step.

STEP 5: COMPLETION

Completion is when the money and keys are transferred. Typically, this takes place one or two weeks after the exchange of contracts, although, since the pandemic, there has been a shift to completion being on the same day as the exchange of contracts. At this point, the buyer’s solicitor sends the purchase funds to the seller’s solicitor. Once received, the keys are handed over and the sale is completed.

So to reiterate, here in Bath, it currently takes 55 days to get to the end of step 1 (finding a buyer) and a further 126 days from instruction of solicitors to completion (steps 2 to 5).

So, anticipate waiting 5 to 6 months from the point the property goes live on the market to the day that you move out. If you’re considering selling your home here in Bath, or a landlord looking for your next buy-to-let property, feel free to reach out to us.

To view our latest Sales Properties in Bath, click here – Properties for Sale in Bath (residebath.co.uk)

To view our latest Rental Properties in Bath, click here – Properties – Reside Bath

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The Future of Buy-to-Let

Posted on 11/11/2024 by prateek

Upcoming future legislation and the recent announcements in the autumn budget have stirred up some anxiety for the future of Buy-To-Let (BTL). The chancellor’s decision to increase the Stamp Duty Land Tax (SDLT) from 3% to 5% for landlords purchasing additional properties initially suggested a grim outlook for the buy-to-let sector. This move, coupled with the introduction of the Renter’s Rights Act, which proposes to abolish section 21 and effect a landlord database, poses new challenges for Bath Landlords but also opens doors to new opportunities. Despite these new hurdles approaching, looking in detail at market insights reveals reason for some optimism among property investors.

Taxation Changes: Assessing the Impact

The Tory and now Labour government policy changes towards the BTL sector aim to cool an overheating property market. Raising SDLT aims to redirect investment opportunities toward first-time homebuyers priced out of the market. Although this policy aims to level the playing field, it has raised concerns among investors about shrinking profit margins and thus the overall attractiveness of investment in the property market.

Despite these concerns, maintaining the current (lower) capital gains tax rates has provided a buffer, easing investor anxiety and stabilising the investment climate. However, many landlords remain cautious, aware that the stability of these rates can change as part of broader fiscal adjustments.

The Renters’ Rights Act: A New Standard

The proposed Renters’ Rights Act will abolish section 21 evictions, which allows landlords to terminate tenancies without fault. This change aims to offer greater security to tenants and ensure that there is fair treatment across the whole rental sector. Whilst this move is a positive one for renters’ rights, it does require landlords to adapt to more rigorous property management and dispute resolution strategies. This potentially increases the cost and complexity of property management.

In addition to this, the act will likely introduce stricter property standards and tenant engagement protocol. These regulations will compel landlords to improve the quality of their offering and engage more transparently and effectively with their tenants.

Market Resilience – Looking into the local market in Bath

Despite the challenges posed by increased taxation and regulatory changes, the Bath BTL market remains resilient. Demand for rentals continues to grow in the city. The average rent in Bath in 2024 was £1,759 PCM a 29% increase from 2019. Meanwhile, the number of rental properties on the market has dropped by 41.7% between 2024 and 2019.

One might say that’s all well and good, but what will this extra 2% stamp duty cost the average Bath landlord? The average price of a Bath buy-to-let property in 2024 is £345,400, meaning:

The average Bath landlord will only need to pay an additional £6,908, which is only 3.9 months’ rent.

Adapting for Success in Bath

To navigate this evolving landscape, landlords need to adopt new strategies to conquer a changing market.

Diversification: Landlords can spread risk and tap into different markets by creating portfolios that include a mix of residential types and target different demographics.
Reduction of Rent Arrears: A study by Denton House Research a couple of years ago showed that landlords who don’t use a letting agent to find them a tenant have a 272.5% greater chance of that tenant being two or more months in arrears.
Rent Protection: The removal of Section 21 will mean Bath landlords will only have Section 8 to remove tenants if they aren’t paying their rent or being antisocial. This could mean that if the tenant decides they don’t want to move, there could be a good 6 to 9 months of no rent (if not more). Therefore, you must take on rental insurance.

Final Thoughts for Bath Landlords:

While the initial outlook for buy-to-let investments in Bath might seem daunting due to recent legislative and fiscal changes, the underlying market dynamics suggest a different narrative. The demand for quality rental properties will likely continue to remain strong and provide opportunities for those willing to adapt to new changes.

To view our latest Sales Properties in Bath, click here – Properties for Sale in Bath (residebath.co.uk)

To view our latest Rental Properties in Bath, click here – Properties – Reside Bath

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The New Stamp Duty Increase – Another hurdle for Bath Landlords.

Posted on 04/11/2024 by prateek

The last decade has been a relentless barrage of new regulations and tax changes. From the 3% stamp duty surcharge introduced in 2016 to section 24’s limitation on mortgage interest relief, then the new renters rights act slowly passing through the government and its removal of section 21 eviction notices and finally recent reductions in capital gains tax allowances – it is fair to say that Buy-To-Let (BTL) investors have been under relentless pressure.

Now to add to this long list, the looming EPC regulation change, requiring properties to meet tougher energy performance standards, and the latest increase in stamp duty – raising its surcharge from 3% to 5%, there feels like another layer of financial burden on top of another, and it is no wonder that many landlords are feeling stretched to the limit and want to draw a line and sell up.

However, although these changes all seem daunting – let’s take a step back and evaluate the bigger picture.

For landlords with a long-term view, this extra cost is unlikely to fundamentally alter the financial viability of their investment. This one-off expense becomes ‘lost in time’ when spread out of the lifetime of an investment. Yes, it is a higher upfront cost, and as with any additional cost, it is not welcome. However, for most BTL investors, this increase won’t dramatically change the fundamentals. In fact, it’s like when the initial 3% surcharge was implemented in 2016; back then, very few landlords were deterred, and the market quickly adapted.

Another reason to stay positive is the remarkable growth in the rental sector seen over the last few years. In the last few years, rents have risen by 8-10% (Largely fueled by wage growth and continued supply/demand imbalance in the market) and are set to continue growing thanks to minimum wage rises, further bolstering the case for long-term BTL investment.

Furthermore, capital gains tax, though perceived as a deterrent, was reduced last year for higher-rate taxpayers, from 28% to 24% on residential property, which helps retain more of the gains made on property sales. Labour has made no change to that.

In real terms, UK house prices are now 15% cheaper than three years ago, another boost to the incentive to invest in BTL. So, ultimately, for savvy investors, now is potentially a more favourable time to secure a good deal for long-term gain. There will be a higher upfront cost that will have to be absorbed, but with a long-term vision, your investment can definitely be profitable.

While landlords are certainly facing pressures from the new EPC regulations in the coming years, history shows that when the government mandated the EPC rating to an “E” in 2018, it tempered the impact to avoid a market disruption with a maximum of £3,500 maximum spend to reach that level. We’ll likely see a similar approach this time if it risks an excessive withdrawal of rental properties from the market.

Ultimately, the buy-to-let market remains one of the few investment avenues where one can achieve both income and capital growth.

Bath landlords may need to consider this stamp duty increase when negotiating purchase prices, but for those with a long-term perspective, this is simply another bump in the road.

While change is inevitable, BTL still represents a sound investment – especially for those who are in it for the long haul.

To view our latest Sales Properties in Bath, click here – Properties for Sale in Bath (residebath.co.uk)

To view our latest Rental Properties in Bath, click here – Properties – Reside Bath

For more from Reside Bath: Lettings and Estate Agency, click the icons below!

BATH PROPERTY MARKET OVERVIEW – OCTOBER 2024

Posted on 28/10/202404/07/2025 by prateek

Are you a homeowner in Bath? Perhaps you’re an individual or an investor planning on moving, buying or selling a property in the next six to twelve months, or maybe you’re on the lookout for your next home, perfect for the family, but not up against any time scale. Either way, having a clear understanding of the current state of the market here in the city of Bath is vital to making an informed decision and the right one for you or your family.

By reading our blog you can stay up to date on the latest market trends and activities which will help you plan effectively.

WHAT KIND OF PROPERTY MARKET DOES BATH HAVE RIGHT NOW?

One of the best ways to determine the current state of the market is to determine whether the market currently sits in a ‘buyers’, ‘sellers’, or balanced market. We can achieve this by looking at the ratio of properties marked as ‘sold STC’ or ‘under offer’ compared to the total number of properties available for sale.

For example, if 41 properties are marked as “Sold STC” out of 100 available, then the market is operating at 41%. This ratio isn’t just a random figure – it’s a reflection of the overall sentiment in the market.

Here is how the percentages breakdown to determine the market –

Extreme Buyer’s Market (0%-20%): Buyers hold all the cards.
Buyer’s Market (21%-29%): Buyers have the upper hand but not as strongly.
Balanced Market (30%-40%): A stable equilibrium between buyers and sellers.
Seller’s Market (41%-49%): Sellers begin to gain the upper hand.
Hot Seller’s Market (50%-59%): Strong competition among buyers.
Extreme Seller’s Market (60%+): Sellers dominate, with properties moving fast.

These benchmarks play a critical role, influencing everything from listing prices to negotiating leverage.

THE CURRENT SNAPSHOT OF THE BATH PROPERTY MARKET:

Oct-16 – 51%
Oct-17 – 44%
Oct-18 – 37%
Oct-19 – 38%
Oct-20 – 46%
Oct-21 – 65%
Oct-22 – 64%
Oct-23 – 50%
Oct-24 – 51%

As is expected, it was a stronger market for Bath sellers in the post-Covid years, yet things have settled down now to levels seen before the pandemic, this current percentage of 51% puts us just into a hot sellers’ market.

WHAT THIS MEANS FOR BATH SELLERS:

If you’re looking at selling your property in Bath, the current market conditions require more patience and flexibility than in 2021. The days of the stamp duty holiday and properties flying off the market within days are behind us and this means that sellers need to focus on their property marketing and prepare for longer periods on the market.

A crucial step in getting your property sold in this market is to make sure that the property is priced correctly. Now that supply is outstripping demand, it is crucial that you price your property correctly to attract demand and not deter potential buyers.

This month, 57% of properties that came to the market sold STC and to completion. The rest left the market unsold. Nationally there has also been a downward trend in the number of properties selling. This is likely due to the impending budget and potential buyers wanting to secure a lower mortgage rate if inflation continues to fall.

In light of these changes, your marketing approach should be one that is well thought out and gives your property the best chance of selling. Utilising digital tools such as virtual tours, video marketing and social media posts can give your property a competitive advantage, and help gain more serious buyers in a market where securing interest is becoming increasingly challenging.

WHAT THIS MEANS FOR BATH BUYERS:

For buyers, particularly in sought-after areas in the city, the competition remains fierce. Securing a mortgage agreement in principle will give you a significant advantage over others in such a competitive environment.

In less competitive areas, buyers have more room to negotiate. You’ll likely find more flexibility on price and even some extras, such as fixtures, fittings, or other incentives thrown in by sellers eager to close a deal. The pressure to make quick decisions is reduced, allowing you more time to thoroughly consider your options.

It’s also worth remembering that most sellers are also buyers, so any loss you may experience on the sale side should be offset by a better deal on your next purchase.

External factors such as global economic trends, events, inflation, and interest rates will continue to influence the Bath property market in the coming months. Keeping an eye on these trends is essential for buyers and sellers alike.

Final Thoughts

As we enter November 2024, the Bath property market presents both opportunities and challenges for buyers and sellers. Understanding the subtle shifts in market dynamics is crucial for anyone planning a move, whether you’re a seasoned investor, a first-time buyer, or looking to relocate within the area.

Staying flexible, informed, and prepared will make all the difference in navigating this market. The experience of moving is as much about the journey as it is about reaching your destination.

Price Reductions – When? How? Why?

Posted on 11/10/202404/07/2025 by prateek

Did you know that 1 in 10 Home Sellers in Bath Lower Their Asking Price Every Month?

As the property market continues to evolve here in the city of Bath, it is important for estate agents such as ourselves to better understand the complexities of the market. For readers, it is also important you keep up-to-date with all the going on in our property market. This can be easily achieved by following our blog, and our social media channels.

Recently, homeowners in Bath who have found themselves on the market for a long period of time are navigating the complex decision of how and when to reduce their asking prices to better attract a buyer.

With an increasing number of properties coming to the market here in Bath (1,217 on the market in August 2024) the competition is becoming increasingly competitive meaning strategic price adjustments are more crucial than ever.

MASTERING PROPERTY PORTAL PRICE BANDS FOR OPTIMAL EXPOSURE

Understanding and utilising property price bands on the ‘portals’ (Rightmove, Zoopla, OnTheMarket) can significantly enhance the visibility of your property listing. These bands are predefined price ranges buyers often use to filter their search results. Positioning your property’s asking price in one of these bands will strategically draw in more views and therefore there will be more interest in your property, which in turn will lead to more viewings and ultimately increase your chance of selling your property.

For instance, pricing at £300,000 instead of £295,950 will place your property in a filtered search of properties between £280,000 – £300,000 & £300,000-£320,000 so you will have a chance at attracting a broader audience.

THE IMPORTANCE OF RIGHTMOVE ALERTS

A critical factor in the timing of price reductions is their impact on buyer visibility. Homeowners need to reduce their asking price by at least 2% to ensure their property reappears in Rightmove and OnTheMarket’s email alerts, while for Zoopla it is 3%, capturing the attention of active buyers.

THE CURRENT STATE OF PLAY IN THE BATH PROPERTY MARKET

In 2022, there were an average of 77 price reductions a month in the Bath area, today it’s 116 per month. The average Bath price reduction in the last 3 months was 7.1%. So, the statistics show that whilst the number of properties coming to the market is on the rise the number of price reductions has increased. In fact, the percentage of Bath properties undergoing price reductions has remained roughly consistent in recent years, with an average of 1 in 10.1 Bath homes (9.9%) reducing their asking price each month over the last five and a half years.

THE IDEAL PRICING STRATEGY FOR HOMES IN BATH

The initial pricing strategy plays a pivotal role in the speed and success of your property sale. Bath properties that get priced too high at the onset tend to stay on the market for longer and eventually require a more significant price reduction to generate new interest. By contrast, homes are priced realistically from the beginning (Click Here to find out more about the importance of pricing correctly), are far more likely to attract offers quicker and reduce the need for substantial price cuts.

For Bath sellers wanting to initially start at a ‘cheeky’ higher price, you need to be prepared to reduce this price if there is little to no initial interest. In these cases, a reduction within the first 2-4 weeks of being on the market is advisable and will help prevent stagnation in the market.

SIX THINGS TO CONSIDER FOR A PRICE REDUCTION

So, your property is on the market. It has been a few weeks and you’re wondering if you should be reducing the price. Well, here are six tips to look out for as signs you should be thinking about reducing that asking price:

A LACK OF VIEWINGS

If you haven’t received many viewings in the initial few weeks since listing your property, then it is advisable that you go and first look at your property listing and check that the marketing photos are up to standard for the area and are making your property stand out, maybe even check if your agent is willing to offer a virtual tour on your listing page (we certainly do). If you feel that the marketing material for your property is up to standard, then maybe it is time to consider a price reduction to attract new interest and boost your property on the portals.

VIEWINGS…BUT NO OFFERS

The current ratio in the UK property market of viewings to offers is around 8:10. If your property has not received any offers within the first 30 days of being on the market with your estate agent, despite there being plenty of viewings, then it could be that the price is a sticking point for potential applicants. If this is also the feedback your agent is getting then maybe it is also time to consider reducing the price closer to your bottom line.

LOW OFFERS

Homebuyers will often make low-ball offers primarily to secure the best deal possible they can for the budget they can afford. However, there can be numerous reasons. One key factor is the current market conditions – In a Buyer’s Market (more homes available than buyers) the purchaser feels that they have more power to make a low offer as the seller will be fighting other sellers to sell their house first (To find out more about Bath being a buyers or a sellers’ market, click here). Another reason for low offers is the condition a property presents itself. If a buyer feels they will need to be spending a fair amount of cash on renovations and decorative work to get it up to a standard they deem fit, then they are far more likely to take this cost into account and offer low. If you are getting low offers, remember it is not worth the value YOU think it is worth, or what your agent thinks it is worth, it is worth the value someone is willing to pay.

MARKET SATURATION

Look at the number of Bath homes that are on the market similar to your property, and check to see if you stand out from the other listings. Check on those properties similar to yours that sold too. Adjusting your price in line with the level of saturation in the market and how those properties that sold is crucial for selling your own.

SEASONAL ADJUSTMENT

Be mindful of seasonal trends within your local property market. Periods of high market activity require different strategies from the slower months of say November and December.

FEEDBACK FROM VIEWINGS

If there is consistent feedback from viewings that your property requires some work in the majority of people’s eyes, or that the price is just too high for what’s on offer, then you need to be looking at adjusting your asking price.

LEVERAGING EXPERT ADVICE

Given the Bath property market is full of many complexities, seeking out a second opinion and advice is nothing to be worried about. Experts such as ourselves are happy to help you out and offer you advice, it is what we are here for. So, if you just want another valuation or you want some advice about switching agents and lowering the asking price, then do not hesitate to get in touch with our team.

To view our latest Sales Properties in Bath, click here – Properties for Sale in Bath (residebath.co.uk)

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‘OVERVALUING’ – HOW IT CAN AFFECT YOUR HOUSE SALE IN THE BATH PROPERTY MARKET

Posted on 07/10/202404/07/2025 by prateek

In the last 5 years, 7,149 homeowners looking to sell in Bath have been caught out by estate agents overvaluing their property. Now, understandably, if you have considered selling your property then you will have felt the temptation to list it at a higher price hoping to maximise your sale. After all – who wouldn’t want to maximise their return on their investment?

However, this approach has a downside that many have overlooked: the risks and costs associated with overpricing/valuing a property. So let us dive into why correctly pricing your property is essential to secure a smooth, quick, and profitable sale for your home here in the city of Bath.

A COMMON PITFALL IN BATH’S PROPERTY MARKET:

In recent years, the Bath property market has seen a surge in home prices, leading to fierce competition among estate agents. During the peak of the market in 2021, many estate agents in Bath achieved top prices for properties, often receiving multiple offers in a matter of days. This quick time to sell was likely brought about by the desire for those to move out of metropolises such as London due to the pandemic and move to a quieter area with more space for their money. However, this quick time to sell and above-average pricing came with unintended consequences.

As fewer homes in Bath came onto the market after this boom, agents became desperate to secure listings. So, to secure potential sellers, many agents began over-pricing properties. This ‘overvaluing’ has led to delays and distress for many Bath homeowners as their property is then in turn not attracting as much attention as they thought it would leading to a significantly increased sale time and often a price reduction.

THE IMPACT OF OVERVALUING – LONGER SALES TIMES AND INCREASED RISK:

So, why are so many properties in Bath still on the market after a prolonged period of time? Often it all comes back to this concept of ‘overvaluing’. When a property is priced too high, you don’t attract serious buyers. Instead, your property sits on the market for an extended period, leading to frustration for both homeowner and agent and ultimately these properties end up being taken off the market unsold.

So, let’s look at the statistics:

Since 2019, in the regions of the BA1/2 area –

In 2019, 46.7% of the 3,693 properties that left Bath estate agent books, exchanged and completed. The remaining 1,970 (or 53.3%) Bath homeowners came off the market unsold.

In 2020, 69.4% of the 3,116 properties that left Bath estate agent books, exchanged and completed. The remaining 1,430 (or 45.9%) Bath homeowners came off the market unsold.

In 2021, 69.4% of the 3,254 properties that left Bath estate agent books, exchanged and completed. The remaining 996 (or 30.6%) Bath homeowners came off the market unsold.

In 2022, 72.1% of the 2,885 properties that left Bath estate agent books, exchanged and completed. The remaining 805 (or 27.9%) Bath homeowners came off the market unsold.

In 2023, 59.2% of the 2,815 properties that left Bath estate agent books, exchanged and completed. The remaining 1,148 (or 40.8%) Bath homeowners came off the market unsold.

In 2024 (YTD), 57.4% of the 1,877 properties that left Bath estate agent books, exchanged and completed. The remaining 800 (or 42.6%) Bath homeowners came off the market unsold.

THE HARD DATA ON OVERVALUING:

Now, you could reduce your asking price after three or four months to make your home’s price more realistic and affordable. This is certainly an option, yet because homes that sit on the market for too long often develop a negative reputation, potential buyers will end up asking themselves why the property has been on the market for so long and if there is a ‘hidden issue’ in the property that is causing it to not sell – essentially buyers automatically assume something is wrong with the property and get deterred.

As a result, even when the price is eventually lowered, as reported a few years ago, the property is likely to sell for less than it would have if it had been priced correctly from the beginning.

Recent independent research from TwentyEa and Denton House Research, that a UK home that takes over 100 days to sell (i.e. more than 100 days between coming on the market and agreeing on a sale) has only just over a 1 in 2 chance (56%) of successfully exchanging and completing the sale. The remaining 44% of sales fall through.

In contrast, if a property has its sale agreed in under 25 days, the chances of exchanging and completing rise to 19 out of 20 (94%). That’s a significant difference!

THE IMPORTANCE OF GETTING THE CORRECT PRICING ON YOUR HOME IN BATH:

So, what can you do as a homeowner to make sure you don’t fall into the overvaluing trap? The key is to ensure that your Bath home is priced correctly from the outset. Here are a few tips that should help you achieve this with your agent:

GET MULTIPLE VALUATIONS: Now this may sound backwards coming from a local estate agent. However, do not rely on your first appraisal. Ask several agents for a valuation and compare the suggestions. Then, choose which agent you think will work best for you and your property. We would love for you to choose us so if you are interested in getting a valuation then click here. Our team have been working in the City of Bath for over 15 years and our property consultants are locals to the area having grown up here, so our wealth of knowledge is plentiful!

RESEARCH COMPARABLE SALES PROPERTIES: Head to a Rightmove page full of sales properties in your local area and compare how similar homes to yours that have sold recently have been priced and see where you feel your property sits. You can also take a look at local agents’ sales property pages as some homes will not be listed on Rightmove.

UNDERSTAND THE CURRENT MARKET CONDITIONS: The property market is constantly changing. The highs of the 2021 post-pandemic property market have now cooled off, so make sure you are getting a valuation that reflects current market conditions. It is also a good idea to follow local agents. You can keep up to date with the latest on the Bath property market from Bath’s newest Estate Agents here – or you can follow us on our social media pages found in our linktree.

WORK WITH AN AGENT YOU TRUST: Choosing an agent that is a good fit for you is crucial. Look at how they market properties, do they have a good reputation and whether they will do what is in your best interest, not just theirs. If you want more information about our sales services, then Click here.

FINAL THOUGHTS:

Overvaluing might seem tempting – but the risks far outweigh the potential rewards.

Not only does it result in longer sale times, but it also decreases the likelihood of a successful completion. By pricing your Bath home accurately from the start, you can increase your chances of getting a decent price and a smooth and profitable sale.

Remember, the goal isn’t just to sell your Bath home – it’s to sell it for the best price, within the best time frame, to a serious and motivated buyer. By working with an experienced and honest estate agent, you can avoid the pitfalls of overvaluing and achieve the successful sale you deserve.

If you have any questions or would like more advice on selling your Bath home, check out our dedicated sales page for both Buyers and Sellers – and always feel free to pop into our office or give us a call.