Fine & Country National Housing Market Update May 2024

831, 000 £ 1, 254, 411 - 1. 9%

670 £ 35. 7b n 15, 551 M ORTGAGE AP P ROVALS (M AR)

STEADY RECOVERY

Leading indicators for the property market this spring show promising signs, with mortgage approvals on an upward trend and sales volumes steadily recovering.

SPRING OPTIMISM

With inflation falling to just 3.2% in the year to March (ONS), and rumours of an imminent base rate reduction, confidence in the market is on the rise. With the economic outlook improving alongside the usual spring optimism, almost twothirds of agents say that buyer confidence has improved compared to three months ago (Dataloft by PriceHubble poll of subscribers). Mortgage approvals reached 61,325 in March, the highest level since September 2022 and 20% up on the same month last year (Bank of England). Transaction activity is slowly building, although it remains down on last year’s levels. 84,200 sales took place in March, the third consecutive monthly rise, indicating a reviving property market, with better economic conditions alleviating household financial pressures (HMRC). Zoopla report that the market is on track for 1.1 million sales in 2024, up 10% on last year.

PRICES

Signs of a slow but steady recovery in the housing market are becoming increasingly evident, with the average asking price of a property coming to the market rising by 1.1% in April to £372,324, while the annual rate of price growth is now +1.7%, the highest level for 12 months (Rightmove). With an improving economic outlook, Lloyds Bank has revised its UK house price forecast, now predicting a 1.5% increase in 2024, a shift from the previously expected decrease of 2.2%. Lloyds also expects that the Bank of England will cut the base rate three times by the end of this year.

ARRAY OF CHOICE

The supply of homes for sale has reached a five-year high with 20% more homes on the market versus the same time last year (Zoopla). This is promising news for families seeking to upsize, as the average agent outside London now offers twice as many 4+ bedroom homes compared to February 2022, whilst there are 25% more three-bed homes available compared to the same time last year. The current surge in supply is giving potential buyers a wide array of options, although affordability remains a key factor affecting budgets. Sellers entering the market should consider this and set realistic prices for their properties to ensure successful sales.

As we move into the warmer months, the average time to sell is coming down. The average property took 64 days to sell in March, the lowest level since October 2023 and significantly quicker than 78 days in January (Rightmove). Terraced houses are the property type selling the quickest across the UK, at an average of just 56 days, followed closely by semi-detached houses at 58 days (TwentyCi and TwentyEA Property and Homemover Report).

PRIME MARKET

The average price of a property in the prime market is £1,254,411, slightly down by 1.9% on a year ago. The East Midlands, and Yorkshire and the Humber are showing positive annual growth, at 0.6% and 0.2% respectively. There is a strong presence of cash buyers in the prime market. 35% of sales in Great Britain are currently cash, compared to 30% the same month the year before (UK HPI).

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