UK buyer demand is up 12%, while the volume of sales agreed is up 13% year-on-year across all regions and countries of the UK.
The data, provided by Zoopla, shows that London has led the rebound in new buyer demand, with housing affordability in the capital being the best since 2016.
Meanwhile, the supply of homes for sale is 22% higher than a year ago – evidence of renewed confidence amongst sellers but also boosting choice for buyers.
Despite the rebound in activity, it remains a buyer’s market – a fifth of sellers are still accepting more than 10% below the asking price to secure a sale.
Property industry reactions:
Tom Bill, head of UK residential research at Knight Frank, commented: “The housing market has picked up in January where it left off before Christmas, with buyer demand being driven by falling mortgage rates. Things have improved markedly on paper as the best rates fall below 4% and that should translate into a seasonal spring bounce. The economic picture is more settled and we expect 3% UK price growth this year although there is a risk that political volatility increases and begins to cut through with buyers and sellers.”
Matt Thompson, head of sales at Chestertons, said: “2024 started with a busy property market as buyers have been motivated to either commence or finalise their property search. The increasing availability of more affordable mortgage deals thereby plays a key role and will likely continue to fuel a surge in buyer activity over the coming weeks.”
Adam Feather, head of Robert Anthony Estate Agents, commented: “The housing market remains price sensitive, which means that sellers have to be realistic with their asking price or face deterring potential buyers.
“2023 marked a turbulent year for the UK property market as soaring mortgage rates, the cost-of-living crisis, and general economic uncertainty influenced the intentions of buyers and sellers alike. But purchaser confidence appears to be rebounding with the gradual reduction in borrowing costs, which should lead to an uptick in transactions this quarter.”
Tom Ashwood, managing director at Tom Ashwood Real Estate, said: “We have most certainly seen a spike in activity across all prices ranges from a buyer enquiry perspective in the early part of 2024 and alongside that there are more sellers looking to list their property, with both exceeding our internal expectations for January.
“I feel the increase in buyer activity that has initially been fuelled by a reduction in mortgage rates and a lack of intent to buy through 2023 will assist in keeping asking prices fairly stable through the initial part of 2024, which will lead to more property being listed for sale. If interest rates remain at a stable level and the appetite remains, we may even see an increase in house price inflation this year, particularly through the good selling time we tend to see between the Spring and Summer months.”
Significant rise in new sales agreed as housing market conditions improve
