The first part of 2024 has seen an uptick in the housing market according to the latest data from Zoopla, observing increases in property sales, home value gains, and available listings.
Compared to the previous year, new sales increased by 9%, with the first quarter of 2024 showing a 7% rise in home sales agreements over the same time in 2023.
This positive movement has encouraged a 20% jump in new home listings compared to last year at this time.
Regions where houses are more affordable, like Yorkshire and The Humber (where average prices are £185,600) and the North West (with average prices of £194,500), have seen the largest surge in sales activity, at 11% and 13% respectively.
New listings have particularly spiked in the South West, up by 28%, and the North East, up by 26%.
Additional signs of a healthier market include a shrinking gap between asking and final sale prices, now aligning with the average before the pandemic hit.
The discount from the initial listing price to the sale price has reduced from 4.5% in November to 3.9% in March 2024, marking the smallest discount since July 2023 and equating to a discount of £10,000 compared to £14,250 in November.
Zoopla’s Executive Director, Richard Donnell, stated, “Increased wages and reduced mortgage rates have lifted consumer confidence, leading to better housing market activity in 2024’s first quarter.
“While house price falls have slowed, it still leans towards a buyer’s market, with a lot more options available. Prices are unlikely to spike suddenly, but there is growing interest from buyers.
“Sellers should keep their price expectations in check to make the most of these market improvements and successfully sell and move this year.”
Reflecting on the information, Knight Frank’s Head of UK Residential Research, Tom Bill, mentioned, “UK housing demand is on the rise, but it’s not breaking free just yet. Mortgage rates have reduced since last October but remain above January’s rates due to persistent inflation and the Bank of England’s careful approach. Increasing supply could lead to lower prices, and financial strain may be intensified by the large number of people transitioning off fixed-rate mortgages from 2022. Despite political and economic challenges, we expect to see a notable spring market uptick this year.”
Nathan Emerson, CEO at Propertymark, noted, “It’s positive to see a revival in house sales. With spring and summer typically being busy seasons in real estate, Propertymark hopes the Bank of England will help ease borrowing costs gradually and promote more housing moves by cutting interest rates. This could energize the market further, especially considering our agents have seen a 120% rise in potential buyer registrations, indicating a growing market appetite.”
Matt Thompson, Head of Sales at Chestertons, added, “In March, buyer demand remained stable, with some holding out for potential incentives announced in the Spring Budget. When these weren’t introduced, the majority resumed their searches. Thus, March ended with a strong first quarter, particularly in London where demand still surpasses supply.”