Uptick in Housing Market, with Buyers Offering Incentives to Win Homes

Exploring the current upswing in the housing market, the trend of buyers using ‘bribes’ to secure homes, and related news in property.

As we move through February, a month often considered dull as the excitement of the New Year fades and warmer weather is still distant, there is nevertheless a hint of positivity in the housing sector, as highlighted by this collection of recent property news.

Year-on-Year House Prices Increase in February

Notable house price index provider Nationwide reports a 0.7% increase in average house prices for February, marking a 1.2% annual uptick—the first in a year. This boost in valuation comes as worries about interest rates dissipate and borrowing costs decrease. Nationwide’s Chief Economist, Robert Gardner, states this surge has brought house prices close to the peaks seen in Summer 2022, although he cautions that a recent uptick in borrowing costs could limit housing market recovery.

While Nationwide’s figures are insightful, they exclude transactions by cash buyers, a significant portion of the market, but they are not alone in suggesting more favourable market conditions ahead.

Growth Observed in the Number of Buyers, Sellers, and Sales Agreed

Zoopla’s house price index also shows promising trends in the housing market. Buyer demand is 11% higher, homes on the market have increased by 21%, and sales agreed—which reflect market health—are 15% higher compared to the previous year. Growth has been consistent over the last five months, and Zoopla predicts a 10% increase in home sales this year compared to 2023. Despite this, some sellers are still reducing asking prices to attract buyers.

Regional differences are apparent, with Southern England experiencing significant price drops, London offering relatively better affordability despite high prices, and areas with prices at or below the UK average seeing minimal annual price reductions.

Buyers Resort to Extra Offers to Secure Desired Homes

According to a survey by Yopa, involving over 1,000 recent homebuyers, 24% admit to incentivizing sellers to stand out among potential buyers. Tactics include emphasizing chain-free status, proving cash-buyer capabilities, and even offering home-baked treats or professional services without charge. Some buyers have even conceded to undocumented financial enticements outside of official channels, with a notable 89% claiming such strategies worked in their favour.

Comparing What $1 Million Buys You Globally

Those looking to maximize their million-dollar investment would find Mumbai, India, a top choice, with the ability to purchase 103 sq m of prime real estate. In stark contrast, the same amount buys only 16 sq m in Monaco. Knight Frank’s Wealth Report 2024 indicates that luxury housing markets worldwide saw an average increase of 3.1% last year. Leading the rise were Manila, the Philippines, and Dubai, with substantial gains in high-end property values.

Rise in Italian Home Searches Following TV Show

Demand for homes in Tuscany and Lucca, Italy, has spiked significantly, as recorded by Rightmove. The increase is influenced by a television series showing Amanda Holden and Alan Carr renovating an Italian property, which is now for sale.

Most Valuable Road Names in the Nation

A study by Open Property Group sheds light on road names that correlate with higher property values. ‘Hill’, ‘Lane’, and ‘Garden’ are at the top, while ‘Terrace’ roads see the lowest average prices. This quirky information could make for a fun detail at your next social gathering.