The current asking prices for property listings have almost reached a record peak this month, according to the latest data from Rightmove. Despite this, sensitivity to pricing persists in the market.
There’s a noticeable increase in the number of sellers entering the market, which has helped boost the volume of sales agreements – a positive change for real estate agents.
UK housing market sees continued growth this spring as listing prices increase once more.
Feedback from industry professionals:
Tom Bill, head of UK residential research at Knight Frank, remarked: “The mix of signals received by buyers and sellers throughout 2024 has been complicated by the changing forecasts for interest rates. Despite the climbing listing prices suggesting sellers are becoming more optimistic, there’s an overall negative trend affecting prices due to mortgage rates inching upwards, a growth in listings, and many people’s fixed-rate mortgages below 2% from early 2022 coming to an end.
“This situation is creating more push and pull regarding prices, especially as economic data seems to push the possibility of an interest rate reduction further away. However, the increased inventory should lead to a noticeable boost in market activity this spring.”
Nathan Emerson, CEO of Propertymark, expressed: “As both buyers and sellers are eager to kick off their springtime property searches, the continuous rise in property values is encouraging, even as interest rates remain unchanged to help stabilize the economy after a surge in inflation.”
“The market is showing a practical response to the current situation, as evidenced by our Housing Insight Reports, showing an 18 percent rise in new property listings. The Bank of England’s Money and Credit report also indicates an increase in mortgage refinancing approvals from 30,900 in February to 37,700. Now is actually the prime time for purchasing a new home.”
Marc von Grundherr, director of Benham and Reeves, commented: “We’re witnessing a spring awakening in terms of buyer interest, prompting sellers to bump up their asking prices close to the highest they’ve ever been.
“As inflation begins to ease and the uncertainty of the market diminishes, the property sector is naturally responding with a rise in prices. Additionally, for the first time in many years, affordability of housing is improving, thanks to wage growth outpacing both consumer inflation and the rate of house price increases.”
Ruth Beeton, co-founder of Home Sale Pack, mentioned: “With the demand from buyers growing, sellers are also raising their price expectations. The good news is homes are being sold at their fastest pace since November, averaging 64 days on the market, which shows a significant improvement in the buying interest.”
“Homes are selling 18% quicker than they did in January, which is something to pay attention to as faster sales might lead to even higher prices shortly. On the other hand, this may increase the likelihood of sales falling through because the conveyancing process is struggling to keep up with the increased pressures.”
Jason Harris-Cohen, CEO of Open Property Group, observed: “Sellers are showing a strong sense of optimism, overlooking any concerns related to election uncertainties and reaching near-record enthusiasm levels.”
“It’s noteworthy that the highest end of the property market is the most dynamic at the moment, with the greatest surge in asking prices we’ve seen in a decade. For those on the upper end of the property ladder, it seems to be an ideal time to sell. However, securing a buyer might become a challenge since these aggressive price increases are pushing the high-end market slightly out of reach for potential buyers.”
UK housing market’s spring revival continues as asking prices ascend once more
