The UK’s property market has kicked off 2024 with an increase in activity and asking prices, as reported by Rightmove. This January, we saw a significant 1.3% month-on-month rise in property asking prices, marking the most considerable jump for this period since 2020. The average listing price for newly marketed homes nearly hit £360,000. Despite this uptick, it’s worth noting that current average prices are still 0.7% lower compared to the same time last year.
Rising Buyer and Seller Activity
Rightmove’s data reveals an uptick in both buyer and seller activity. The number of potential buyers reaching out to estate agents in the first week of 2024 rose by 5% compared to last year. Additionally, a 15% increase in the number of properties hitting the market was observed, following a record influx of sellers on Boxing Day. Furthermore, the number of sales being agreed at the start of the year is up by 20% from last year.
Tim Bannister, a director at Rightmove, commented on the trend, noting a more optimistic outlook for 2024, especially after the inconsistencies of the previous year. He highlighted the influx of new listings, buyer inquiries, and agreed sales as positive early indicators. Bannister also mentioned the stabilising mortgage market as a potential factor encouraging people to act on their moving plans this year.
Echoing Rightmove’s findings, Reallymoving, a comparison site for home move services, reported a 73% increase in new registrations for services like conveyancing, surveying, and removals in the first week of January compared to last year. Rob Houghton, CEO of Reallymoving, finds these numbers encouraging, indicating a rebound in activity by those who delayed moves in 2023.
Challenges in Finding Buyers
Despite these positive trends, challenges remain. In December, it took sellers an average of 71 days to find a buyer, a marked increase from the 55-day average in July and 19 days longer than in December 2022. Bannister advises sellers to be realistic in their pricing, considering factors like elevated mortgage rates and the broader cost-of-living squeeze.
Regional Variations and Estate Agent Insights
The property market, consisting of numerous micro-markets, exhibits varied behavior. For instance, while prices in the South East of England rose by 2.4% in January, they fell by 1.2% in Scotland. Chestertons, a London estate agency, observed a 20% increase in property searchers and a 24% rise in property offers in December compared to the previous year. This suggests growing buyer confidence, although buyer numbers are still lower than pre-interest rate hikes.