Demand increased within the residential sales sector, with the number of buyers registered and the number of viewings per property both increasing, according to Propertymark’s Housing Insight Report for March 2024.
The average number of new prospective buyers registered per branch and viewing numbers increased marginally in March 2024, though the viewing numbers are broadly in line with the same period in March 2023.
Despite demand increasing, legislative change including the Renters (Reform) Bill and Housing (Scotland) Bill, continues to dominate the wider discourse.
The report also revealed that there was a slight decrease in the number of new properties coming to the market. Nathan Emerson, Propertymark CEO said that interest rates remained static in March, and “although the changes were small”, GDP and inflation “continued to move in the right direction”. He continued:
“Barring global shocks, we remain optimistic that inflation will continue its downward trend, eventually allowing for interest rates to be reduced. Demand increased within the residential sales sector, with the number of buyers registered and the number of viewings per property both increasing. On the supply
side, new instructions decreased slightly. Stock levels also decreased but remain on par with the same period last year.
In the residential lettings sector, tenant demand decreased, and stock levels increased marginally.However, demand continues to outpace supply overall, with nine new applicants registered for each available property. Legislative change including the Renters (Reform) Bill and Housing (Scotland) Bill, continues to dominate the wider discourse. We continue to work with our members to lobby for change that supports investment, minimises unintended outcomes and enables a well-functioning housing system.”
What’s more, the latest Rightmove mortgage rate information revealed a notable increase in mortgage rates compared to a year ago across various fixed-rate terms and loan-to-value (LTV) ratios. Specifically, the average 5-year fixed mortgage rate has risen to 4.97%, up from 4.48% a year ago, while the average 2-year fixed rate now stands at 5.38%, compared to 4.78% previously.
For mortgages with an 85% loan-to-value ratio over a 5-year fixed term, the average rate has climbed to 4.90% from 4.44%, and for those with a 60% LTV, the average rate has increased to 4.50% from 4.17%. The average monthly mortgage payment on a typical first-time buyer property, when securing an average five-year fixed, 85% LTV mortgage, has risen to £1,117 per month from £1,056 per month a year ago. Matt Smith, Rightmove’s mortgage expert said:
“Next week’s Bank of England meeting will be quite key for setting the tone for mortgage rates leading into summer. An uneasy few weeks for the world economy has meant that there is still a lot of uncertainty around when we might see the first interest rate cut – and both have contributed to an uptick in average mortgage rates.
Despite the rises, it doesn’t appear that we’re seeing the same kind of spike in rates as we did at this time last year. Whilst rates have risen, the actual monetary impact on average monthly payments is quite limited so far, which is reflected in home-mover activity, which we’ve seen continue on its same positive trajectory, in a busy spring market so far.”
