It’s no secret that the cost of living is rising in the UK.
Average energy bills are expected to rise by £1,500 this year, with a £700 increase in April followed by a further £800 rise in October. This comes under the regulated price-cap mechanism.
Additionally, the cost of transport has soared by 13.5% which has been fuelled by both rising petrol and public transport costs, and food is currently 7% more expensive than last year.
While the housing market has seen a huge undersupply recently, the race for increased prices is starting to cool. This is due to more properties coming onto the market, and more reductions appear on property portals.
As the property market adapts, it’s wise to ensure that your marketing focus and tone does too.
During the pandemic, estate agency messaging was centred around the ‘race for space,’ stamp duty holiday and moving away from cities.
But now as people’s priorities are changing, your messaging should to.
A focus on energy
The increasing costs of gas and electric are one of the major factors affecting the cost of living for many, and it’s wise to bear this in mind when promoting properties online.
Energy performance certificate (EPC) ratings are often stuck at the bottom of property listings – however, as buyers face substantial energy bills, it’s likely that they will be taking a closer look.
Where properties are particularly energy efficient or in some cases rely on alternative fuel sources, it’s worth highlighting any cost saving benefits.
Examples of energy efficient homes or those that use alternative fuel sources are:
- Biomass boilers in new builds
- Electric only homes
- Homes with working fireplaces
Additionally, be aware that an older home which is harder to heat may become less desirable for a while.
Even in the luxury market, a heated swimming pool might appear more of a burden than a benefit.
Therefore, managing conversations with vendors with this type of property should be realistic.
Rising interest rates
As interest rates rise, so do mortgage repayments.
Based on borrowing £175,000, the average monthly repayment for new mortgage customers have risen by an average of £71 each month (£852 a year) since the start of the pandemic.
Concurrently, the average income needed to secure a mortgage on a property valued at £250,000 has increased by £4500 over the same period (assuming a 30% deposit and borrowing 4.5 times your income).
These combining factors are particularly hitting the lower end of the housing market as first-time buyers are most affected.
If there are less home buyers at the lower end of the market, it can be wise to ensure your marketing of low value properties is as attractive to investors as it is to potential homeowners.
Consider including average rental yields and features that make the property attractive to landlords, as well as those who want to buy a home to live in.
Ensuring that your communications are clear and empathetic to people’s changed circumstances will allow you to build a more trustworthy estate agency brand.
So have a review of your current marketing channels – your social media, email marketing and website information to check that it is in keeping with the current market, and make changes where needed.
BriefYourMarket can help you to craft tailored, branded emails that speak directly to your target audience.
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