The UK housing market has kicked off 2024 with a bang, showcasing significant growth in both property listings and buyer interest, according to the latest data from Rightmove. In just the first month of the new year, the number of new properties listed for sale surged by 13% compared to the same period last year, while buyer demand rose by a healthy 7%. This rise in activity signals a buoyant start to the year for the housing sector, suggesting a growing confidence among sellers and buyers alike.
Mortgage Market Stability Boosts Confidence
A key factor fueling this optimism is the stabilisation of the mortgage market, which has seen average rates on a gentle decline. The average five-year mortgage rate now stands at 4.64%, a notable drop from the peak of 6.11% in July 2023. This calming of mortgage rates has encouraged many to either enter the market or consider moving, bolstered by Rightmove’s tools and resources aimed at helping potential movers find the right time to buy or sell.
Rightmove’s property expert, Tim Bannister, highlights the busy start to the year for estate agents, driven by a mix of new movers and those with pent-up demand from the previous year. The clearer outlook for mortgage rates compared to last year’s uncertainty has played a significant role in this increased market activity.
New Listings
Further emphasising the market’s vibrancy, research from eXp UK reveals an 80% annual increase in the number of homes listed for sale in the last two weeks alone. A staggering 83,033 homes have hit the market, showing not only a 24% increase from November 2023 but also an 80% jump compared to the same period last year. This growth is consistent across every region in Great Britain, with the South East leading the charge with a 31% increase in new listings compared to last quarter.
Rising House Prices Amid Growing Optimism
Adding to the positive momentum, Halifax Mortgages reports a 1.3% increase in the average UK house price in January 2024, bringing it to £291,029. This marks the fourth consecutive monthly rise and the highest annual growth rate since the previous January, at 2.5%. Factors such as competitive mortgage rates, easing inflationary pressures, and a resilient job market have contributed to this optimistic outlook.
Despite the financial challenges of a higher average deposit for first-time buyers, many are navigating the affordability issue by purchasing properties jointly. London maintains its position with the highest average house price, despite a slight annual decrease.