According to recent data from Hamptons, homes that received offers in Great Britain in April had been listed for sale for 50 days on average. This is one day more than last year at the same period, a slight hangover effect from the previous year’s slow pace. Twenty-seven percent of homes sold in the last month were listed in 2023.
In the Midlands and the North, homes took longer to sell compared to last year, while in the South of England, they sold faster. As a result, the difference in selling speed between the South and North has halved to eight days from 16 days last year. The South encompasses London, the East of England, South East, and South West.
The South West region experienced the largest year-over-year decrease in selling times, with homes going under offer six days faster than the previous year. It was followed closely by the South East with five days less and London with four days less.
In Great Britain, one in every twenty homes listed last month received an offer within the first week. Regions in the South of England accounted for four of the five areas where offers were made quicker compared to the previous year.
The North East saw the most significant rise, where offers were made on 13% of homes within a week of listing, up from 7% the previous year. This was followed by increases in the East of England, South East, and South West.
In England and Wales, 27% of homes were sold for more than the asking price in April, consistent with last year’s figure. However, London and the South witnessed a 2% increase from last year, with 25% of homes selling above asking price. This contrasts with the Midlands and the North, which saw a 2% decrease in homes selling above the listed price compared to last year.
Home sellers in the South received on average 98.9% of their asking price in April, slightly more than last year, while sellers in the Midlands increased their asking price by 0.2%. On the other hand, sellers in the North received 0.2% less than the previous year.
For the first time since 2016, London sellers are getting the same percentage of their asking price as those elsewhere in England & Wales, breaking a trend where London properties usually sold for less than the asking price compared to other areas.
The percentage of homes sold after a price reduction reached its lowest level in 18 months this April, with only 44% of homes in England and Wales experiencing price cuts, much closer to the pre-Covid average of 42%.
The price reductions did not decrease in the South West and Wales, and Wales remains the only region where more than half of homes sold after a price reduction.
Aneisha Beveridge from Hamptons comments that the areas of the South most impacted by last year’s high mortgage rates have seen a rebound in sales surpassing both 2023 and 2019 levels. Even with a cautious outlook on rate cuts and a slight increase in new mortgage rates, the number of homes receiving offers is still 10-20% higher than last year’s.
While price drops are currently being observed in official indices for the South, it is anticipated they will either level out or become positive in the coming months. However, since official indices are based on completed sales, the agreements being made now will only be reflected in statistics after several months.
Despite this, a major surge in house prices this year is not expected. Elevated mortgage rates will likely stabilize prices, especially in the South. While the number of transactions was affected more than prices last year, this year is expected to show a quicker recovery in the number of people moving rather than in housing prices.
House price reductions falls to an 18-month low as sales pick-up
