House sales have surged by more than a quarter compared to this time last year while the number of properties listed with estate agents has leapt to the highest figure in a decade. However, there is some caution from experts.
The rise in property listings combined with the fact that bank and building societies have been cutting mortgage rates means there is more choice and greater affordability for home buyers, according to industry experts.
The number of sales agreed is up by 27 percent, while the number of new sellers registering with estate agents has risen 15 percent, according to property sales portal Rightmove.
At the same time, average asking prices are up by £2,974 on last month to £370,759. This represents an increase of 0.8 percent, which is double the long-term average for this time of year.
Rightmove said: “The autumn action has started early with a strong rebound in activity from both buyers and sellers compared to the subdued market at this time last year, continuing the momentum from the better-than-expected summer market. The certainty of a new government followed by the first Bank Rate cut in four years invigorated the market, opening a window of opportunity for movers to act.”
Director of Property Science at Rightmove, Tim Bannister, said: “The number of sales being agreed between buyers and sellers is up by 27 percent compared to this time in 2023, a strong rebound compared with last year’s more subdued market.
“In positive signs for future sales, the number of potential buyers contacting agents is also up by 15 percent compared with this time last year.
“Buyer choice has been improving, and the average number of available homes for sale per estate agency branch is at its highest since 2014, at 33 homes.
“This has come from a 14 percent increase in new properties coming to the market for sale compared with last year, but there still isn’t a glut of homes for sale, as this figure is only up by 3 percent when compared with the more normal pre-pandemic 2019 market.”
Despite the strong figures, there are signs that the market is still cautious and price-sensitive. The average property is still taking 60 days to find a buyer, which is three days longer than at this time last year even with better market conditions.
Rightmove said this suggests that value-conscious buyers are taking their time to find the right home at the right price, leading to a two-speed market.
“Attractive homes priced accurately are likely to be met with interest from buyers quickly, while overpriced or poorly presented homes may languish on the sidelines. Additionally, though the downward direction of mortgage rates is welcome for mover sentiment, they remain high when compared with recent years,” it said.
Rightmove’s weekly mortgage tracker shows that the average 5-year fixed rate is now 4.67 percent. While this is lower than the peak of 6.11 percent in July 2023, it is still nearly double the 2.34 percent of this time three years ago, before the first of 14 consecutive Bank Rate rises.
Rightmove said: “While some can afford to move and are seizing the current window of opportunity to act, others will still need to wait for mortgage rates to reduce and affordability to improve further.
“With affordability still very stretched for many, choosy buyers are taking their time to browse the increased number of homes for sale and find the perfect home at the right price.”
Nathan Emerson, CEO of Propertymark, comments on Rightmove’s latest House Price Index: “It is positive news to see further uplift across the housing market now affordability has more confidently swung in the direction of consumers. Inflation figures due out on Wednesday will prove to be a key influence on the next interest rate decision which will happen on the following day.
“Propertymark remains keen to see further dips in base rate as conditions permit, but at this point it is important to consider what effect the budget at the end of next month may have on the housing market and if today’s figures reflect a keenness by consumers to complete on a property before any potential changes to the current tax structure might be announced.”
