The housing market is witnessing a resurgence, marked by a significant uplift in mortgage applications, property listings, and buyer confidence.
Twenty7tec has confirmed a 19.6% year-on-year increase in mortgage application submissions via APPLY, significantly outperforming the wider market where its reporter volumes are substantially down versus 2022. APPLY streamlines the mortgage application submission process by acting as the single transmission point for all data and documentation relating to a mortgage application. James Tucker, CEO of Twenty7tec, commented:
“In a challenging market and one where product transfers have played an ever-increasing part, it has been pleasing to see the use of APPLY continue to grow at a consistent pace – advisers are seeing the substantial time-saving benefits of using a solution seamlessly integrated with lender systems. This time-saving benefit enables them to spend more time doing what we know they do best, giving exceptional advice to their clients”.
There is still a great deal more that we as an industry can do to encourage the adoption of solutions like APPLY that can really save advisers meaningful time in their day. Total application volumes via APPLY in 2023 were a little below 50,000 – and as such, there is significant room for continued volume growth in 2024 and beyond.”
Simultaneously, the average price of properties entering the market has risen by 1.3% to £359,748, marking the largest January increase since 2020. This rise, more than double the 20-year average, indicates a shift in market dynamics. Despite this uptick, average asking prices remain 0.7% lower than last year, suggesting that sellers are adopting a more realistic approach in their pricing strategies. This adjustment is essential as the market continues to stabilise from the volatility of mortgage rates.
Early indicators in 2024 point to a renewed sense of confidence among buyers and sellers. There has been a 5% increase in potential buyers contacting estate agents compared to last year, with notable spikes in activity in London and the North East. The supply side is also buoyant, with a 15% increase in new property listings at the start of the year.
What’s more, Rightmove has experienced a record influx of sellers since Boxing Day, and Zoopla’s data echoes this trend. Zoopla reported a 128% increase in vendor leads post-Christmas, and over 11,500 properties were listed on the platform on December 26th alone. Tim Bannister Rightmove’s Director of Property Science, said:
“Rightmove’s whole-of-market data puts us in a position to see the very earliest signs of activity in the market, and the number of new listings, buyer enquiries to agents, and sales being agreed are encouraging early indicators. Combined with our more recent Mortgage in Principle data, the numbers suggest that many are taking action to make their move in 2024, perhaps including some who paused last year due to the more unsteady mortgage market. A General Election is expected to be held during the second half of 2024, and traditionally we see a temporary slow-down in activity in the weeks before an election, as movers wait for the outcome and assess any impact that it may have on their housing plans. It will be important to keep a careful eye on this and on the impact of other economic news this year, but for now the data at the start of 2024 points to building momentum, and reasons for growing market optimism.”
The average 5-year fixed mortgage rate now stands at 4.86%, a significant decrease from the peak of 6.11% in July last year. With expectations of a Base Rate cut and some rates edging closer to 4%, the mortgage market presents a more stable and encouraging scenario for potential buyers. Ian Fry, national MD for estate agency at Connells Group, commented:
“The start of 2024 has been far more positive than this time last year. Improving buyer sentiment drove a much more active December and with lenders reducing rates as soon as we returned in January we expect this momentum to continue through the rest of January and beyond.”
