January witnessed a upswing in market activity, with the average number of new prospective buyers per branch soaring by 120% from December’s figures, according to Propertymark’s Housing Insight Report.
In terms of new listings, there’s been a 79% increase in supply since December, translating to approximately eight homes per member branch entering the market in January. This level of activity mirrors the patterns observed in the preceding two years, suggesting a return to a form of normalcy within the market.
Sales dynamics are also on the rise, with the average number of sales agreed per branch climbing from four in December to six in January. This aligns closely with the performances seen at the start of 2022 and 2023, indicating a stable pace in transaction closures.
The recent market movement has shown a decrease in properties selling below the asking price, coupled with an uptick in those achieving their listed value or higher. This shift could signify a changing tide in valuation alignments and market expectations.
What’s more, January saw an increase in the duration of exchanges, particularly in the 9-12 and 17+ weeks categories, while witnessing a decrease in the 13-16 week timeframe. Moreover, the imbalance between supply and demand continues to be a prominent feature of the market. With an average of 8 new tenant applications per available property, the pressure on housing stock persists, although it shows a slight improvement from the previous year’s statistics. Nathan Emerson CEO Propertymark, commented:
“The new year has arrived and those who had delayed selling, buying, and renting in November and December 2023 have returned to the market on mass. However, there has been little change in the economic environment that households must contend with- interest rates are stable but are higher than those seeking mortgages or remortgages would prefer; inflation remains some way off UK Government targets, and GDP performance has been lacklustre. To complete this picture, the global geopolitical and economic landscape remains challenging.
In the residential sales sector, there has been a 120% increase in the number of potential buyers registered. On the supply side, there has been an 80% increase in the number of properties coming to market. However, whilst the gap is closing, there remains a mismatch between valuations and market expectations, with most members noting that properties are still selling at below asking price. T
he lettings sector has also rebounded after the festive break, with a positive increase in the number of prospective tenants registered and the number of properties available to rent. However, this will be a challenging year for UK’s private rented sectors due to a plethora of proposed legislative changes.
We will monitor the impact of these changes as they arise. Although 2024 has started well, it remains to be seen how long this initial uptick in activity will be sustained.”
