MHHG estate agents

The UK property market is witnessing a resurgence in sales activity, driven by pent-up demand and growing buyer confidence. Sales market indicators such as buyer demand and sales agreed have shown significant improvement compared to the previous year, with regions like the North East and London leading the rebound. Additionally, the increase in the number of homes for sale is providing more options for buyers, further supporting sales.

Despite the overall positive trend, certain challenges persist, including occasional asking price reductions to attract buyers, particularly in regions like the South East and East of England. However, the rate of house price falls has slowed down, indicating a more stable market environment.

The housing market can be broadly categorized into three groups: Southern England regions, London, and the rest of the UK. Each group exhibits distinct characteristics influenced by factors such as affordability, mortgage rates, and supply dynamics.

While mortgage rates have fallen slightly, they remain above 4%, which could potentially impact future market dynamics. Looking ahead, the outlook suggests a continuation of rising sales volumes, albeit with modest house price growth. Sellers are advised to remain realistic in their pricing expectations to capitalize on the increased buyer interest.

Key Findings:

Sales Market Activity Improvement:
Buyer demand is 11% higher than the previous year.
Sales agreed have increased by 15% compared to the previous year.
The North East and London have witnessed significant rebounds in sales.

Increasing Supply:
The number of homes for sale is 21% higher than a year ago, providing more options for buyers and supporting sales.

Moderating House Price Falls:
The rate of house price falls has slowed down, with annual house price inflation currently at -0.5%.
All regions of the UK are experiencing a slowdown in price falls, with some regions even recording positive house price inflation.

Three-Speed Housing Market:
Southern England regions have registered the largest annual price falls due to higher-priced markets being impacted by rising mortgage rates.
The rest of the UK has seen rapid house price growth slowdown, with limited annual price falls due to lower average house prices.

Mortgage Rates and Affordability:
Mortgage rates have fallen but remain above 4%, influencing buyer affordability and market sentiment.
Expectation for mortgage rates over 2024 is between 4-5%, potentially impacting house price dynamics.

Outlook:

Sales volumes are expected to rise, but house price growth is likely to remain modest.
Sellers are advised to maintain realistic pricing expectations to attract buyers in the current market environment.

Conclusion:
The UK property market is experiencing a period of resurgence, with improving sales activity and moderating house price falls. While challenges such as higher mortgage rates persist, the overall outlook remains positive for increased sales volumes. Sellers are encouraged to adapt to market conditions by setting realistic prices to capitalize on growing buyer interest.