As the housing market continues to evolve, buyers and sellers need to stay up to date with the latest trends and predictions. In this guide, we’ll delve into the current state of Middlesbrough’s property market and provide a forecast for what lies ahead. We’ll cover average house prices, market demand and other key indicators to keep you as informed as possible. So whether you want to sell or invest in Middlesbrough, explore the town’s potential opportunities and challenges below.
Are you thinking of buying a home in Middlesbrough?
Situated in the northeast of England, Middlesbrough offers a host of benefits for those looking to settle down. In fact, it recently ranked amongst the 5 best places in the country to raise a family. Boro has numerous housing options to suit all budgets and preferences, plus a top-performing University, championship football team and excellent road links for commuters. And if you love getting outdoors, the town is also surrounded by some stunning landscapes, including both coast and country. Sound good? Let’s see how its property market faring…
The current state of the Middlesbrough housing market
Middlesbrough property sales trends 2023
Thinking of investing in a property in Middlesbrough? Then you’ll be pleased to hear that many homes here cost less than half the UK average of £281,974. Great if you’re on a tight budget! On the flip side, homeowners selling up may not see as big of a return as in previous years.
According to home.co.uk, house prices have fallen 8% since 2022, and sales are down by over 60%. This is namely due to the rising cost of living and exponentially high mortgage rates. As of August 2023, the average sale prices of properties in Boro are as follows:
- Average price of a detached property: £269,436
- Average price of a semi-detached property: £144,926
- Average price of a terraced property: £79,293
- Average price of a flat: £59,694
- Overall average property price: £128,318
With that said, these prices are still around 11% higher than the same time in 2020. As a result, if you bought your home a while ago, you should still make a profit when selling.
Wondering how long it will take you to sell your Boro home? Over the last 90 days, the mean selling time for a house in Middlesbrough was 100 days – nearly 3.5 months. Two and three bed properties continue to be the most sought after and often sell faster. Meanwhile, small one bed properties tend to stay on the market for close to double that amount of time.
Need to part ways with your apartment sooner rather than later? Sell your flat fast with the help of We Buy Any Home. We purchase properties from Linthorpe to Eston and beyond, regardless of their age or condition. Apply for a free cash offer online to learn more.
Middlesbrough rental market stats
Considering renting instead? Or maybe you’re an investor seeking a new buy to let property? Either way, there are definitely perks to choosing a Boro property. For one, the average rent here is just £654 per month. Much like the rest of the northeast, this is significantly less than other areas of the country, with the UK average price sitting at £1,068 (excluding London).
Despite this, landlords can still expect a healthy rental yield of around 7.5% due to the affordability of Middlesbrough homes. And this may increase in 2024, with some forecasts predicting a further 5% rise in rental rates across the country. So what else is on the way?
What is expected to happen to the property market in the next 3 years?
While predictions vary, the general consensus is that house prices throughout the UK will continue to fall next year. But not too dramatically. Zoopla are expecting a further 2% drop on 2023 figures. However, if mortgage rates start to level out in 2024 as planned, they anticipate an upturn towards the end of the year.
Halifax’s House Price Index also supports this despite a short-term increase in prices during October attributed to a supply shortage. The mortgage lender didn’t provide an exact estimate in its report, but predicts a ‘return to growth’ from 2025. Of course, this depends on variations in the Bank of England Base Rate and how that impacts mortgage rates/ affordability. But after multiple increases, it seems to have reached its peak and is holding steady at 5.25% for now.
With that in mind, Savills have published a slightly more optimistic forecast, particularly for the northeast. They anticipate that average property prices will increase several percentage points each year. In 2024, they expect UK prices to increase by just 1%, while northern areas could improve by 2.5%. And by 2026, house prices in towns like Middlesbrough could rise by 7.5%. So while the short term outlook isn’t great, things should vastly improve in the next few years.
How will this impact Middlesbrough sellers in 2024?
- Over the next few months, buyer demand will likely remain low due to high interest rates making mortgages less affordable. Winter is also a notoriously less popular time to buy due to Christmas and less appealing aesthetics in poor weather.
- In spring, you can expect the typical seasonal upturn, but also more competition, as more homes are listed and buyer interest grows. (March saw the most sales in both 2022 & 2023). So, if you want to sell soon, spring may well be the best time to list it. April and May also look promising with the Living Wage increase set to boost salaries.
- Zoopla predicts that cash buyers will make up the biggest group of buyers next year. This could well be accurate, given that over half of Middlesbrough properties sold between summer 2022-2023 were bought for cash. Just make sure you’re working with a reputable cash buyer like We Buy Any Home to avoid being scammed or let down.
- If you’re hoping to sell your home in 2024, you may well make less profit, as further price drops are on the horizon. As a result, you’ll likely need to be flexible with your asking price and be willing to consider lower offers. Want to avoid the uncertainty of a constantly changing market and move asap? Learn how We Buy Any Home can help.
Tips for those looking to buy a Boro home in the near future
For those keen to purchase a Middlesbrough in 2024, we’d suggest moving as soon as you can. Some buyers may hold out until the latter half of the year in the hope of lower mortgage rates. But they aren’t likely to drop significantly until at least 2025, so it probably isn’t worth it. Unless you’d like a new build, in which case, there are developments underway in Acklam, Middlehaven, Hemlington and more.
Otherwise, in affordable towns like Boro where monthly mortgage repayments could cost you less than paying rent, we wouldn’t wait. Based on the average property price of £128,318, an 85% loan-to-value mortgage (£19,248 deposit), you could pay back just £517 per month. Check out this handy calculator to generate your own estimate.
On top of that, property prices are generally lower in winter when overall demand is down. Plus, more buyers than ever are negotiating 5% discounts. But when spring rolls round, sellers may well receive more offers which could push prices up. Likewise, by the end of next year, both sale prices and rent rates are expected to rise. So to get more for your money, act now!
Own a house you need to sell first? Worried you’ll miss out on a great deal due to Boro’s 100 day average selling time? Contact We Buy Any Home Middlesbrough for a free cash offer.