The UK property market is showing signs of progress, with an optimistic beginning to the year fostering a rise in home sales compared to last year, as disclosed by Rightmove today.
Though the average asking prices are still £4,776 lower than the peak in May 2023, this is seen as a chance for buyers to enter the market, leading to a surge in purchaser demand and an upward trend in prices.
This month saw the average asking price for new properties rise by 1.5%, or £5,279, reaching £368,118.
Properties with appealing prices are being snatched up quickly, whereas those with too high prices are struggling to attract buyers.
Industry feedback:
Nathan Emerson, CEO of Propertymark, shares: “After several years of economic difficulty, we’re optimistic that the housing market is leaning towards a healthier state. Sellers have been adjusting prices for affordability, leading to a better equilibrium for sales. With stable interest rates, the market is looking more normal and the current conditions are favorable for buying or selling. Our agents are seeing an 80% increase in new properties and a 129% rise in market appraisals. This reflects a strong interest from both buyers and sellers.”
Jeremy Leaf, a north London estate agent, observes: “The listed prices are initial asking prices, but the trend matches what we’ve experienced locally. There’s now a greater selection of homes, causing buyers to take their time. Some anticipated incentives from the Budget or further drops in mortgage rates, which didn’t happen. However, those properties priced realistically are the ones attracting buyers. Sellers who realize that early interest could result in a sale are benefiting from the increased demand.”
Tomer Aboody, director of property lender MT Finance, notes: “Sellers are showing more assurance, with more homes on the market and stronger asking prices amid hopes for a plateau in interest rates as inflation drops. Despite this, the Budget didn’t offer much to energize the market. The government might be waiting for a strategic time closer to an election to take action, like reducing stamp duty. But sellers still need to price their homes accurately to draw buyers, as concerns about affordability persist due to minor increases in mortgage rates.”
Adam Feather, managing director of Robert Anthony Estate Agents, advises: “While the UK housing market is indeed getting better, sellers should stay pragmatic with their pricing. With the cost-of-living crisis ongoing, higher mortgages, and a wide array of choices for buyers, confidence is on the rise but hasn’t fully bounced back from the recent disturbances.”
Matt Thompson, head of sales at Chestertons, points out: “March experienced steady buyer interest, although some paused in anticipation of the Spring Budget. With no significant benefits emerging from the Budget, most of these buyers are now resuming their property search. We foresee March to end the quarter on a high note, particularly in London where demand continues to outpace supply.”
Marc von Grundherr, director of Benham and Reeves, adds: “Stable Base Rates helped to steady the market, but high mortgage rates still restrict buying power, especially in London with its high property costs. Nonetheless, demand is robust, particularly in the super-prime market where buyers remain undeterred by the higher cost of borrowing. This is leading to a high demand for premium properties with fewer available options.”
