House sales surge as green shoots emerge in property market

Buyer interest is on the rise once more, signalling the emergence of green shoots in the UK’s property market.

House sales in the first six weeks of 2024 are 16 per cent higher than over the same period last year, and three per cent higher than pre-pandemic.

According to the latest reading from Rightmove, house prices rose by 0.9 per cent in February to £362k. In London, house prices still remain the most expensive throughout the UK, with the cost of a property up 2.8 per cent to £682k. 

Average house prices are also up by 0.1 per cent compared to last year, following annual falls in every month since August 2023. 

There has also been an increase in activity of both buyers and sellers on Rightmove with seven per cent more new listings coming to market than last year and a seven per cent upturn in the number of buyers enquiring.

Tim Bannister, Rightmove’s director of property science, said: “Momentum to move in 2024 is continuing to build, but prospective sellers mustn’t get carried away. 

“Buyers now have more choice of property for sale and many are still very price-sensitive, with mortgage rates remaining elevated.” 

He added: “Sellers who are serious about moving this year would be well-advised to ride this wave of increased buyer confidence with an attractive asking price before any pre-election jitters or unexpected events dampen the momentum.”

Despite the UK tipping into a technical recession in the last three months of 2023, sentiment in the housing market has shown signs of steady improvement. 

Mortgage rates have declined, in response to cooling inflation, however remain around three per cent higher than their December 2021 average of 2.34 per cent. 

Hopes also remain that the Bank of England will cut interest rates in May as inflation is poised to fall sharply throughout 2024

Jimmy Waight, head of sales at estate agent John D Wood & Co in London said: “We are witnessing a good start to the year in London’s property market, with buyers acting earlier than usual.”

“The surge in activity can be attributed to the decreasing and now stabilising mortgage rates, which have prompted many individuals who postponed their moves last year amid uncertainty to now re-emerge. 

He added: “The current momentum is further underscored by an increase in registered buyers year-to-date compared to the same period last year. 

“This positive trend suggests a renewed confidence in the market, and as we move into spring, we anticipate a continued upward trajectory in both buyer interest and property transactions.”