THE “January bounce” boosting the housing market will help ensure a “significantly more positive year”.
The National Association of Property Buyers said new data showing a rise in the number of New Year property inquiries was a “welcome boost”. According to Zoopla buyer demand and new sales at the start of 2024 are already ahead of equivalent 2023 levels.
Figures from the portal have revealed that buyer demand in 2024 so far is tracking 14% ahead of early 2023 and new sales agreed are up 16% compared to the first week of last year.
In a boost for agents, Zoopla said vendor leads increased by 128% between Christmas Eve and Christmas Day and remain 175% higher two weeks after the portal’s latest marketing campaign launch on 25 December. Commenting, Jonathan Rolande, from the National Association of Property Buyers, said:
“The Zoopla report comes as welcome but unsurprising news to those in the property business who have seen enquiries from the portal and its competitors increase drastically in the last month or two.
Inflation has been falling quickly and bank rates, after months of constant increases, were held. There is an expectation that base rates could even begin to fall although that may be less likely due to world events that may cause inflation to rise once again. But this hasn’t stopped banks from discounting mortgages to their lowest point in 8 months with the percentage rate of many products now starting with a 3.
Significant advertising by portals will have boosted enquiries further, TV, Spotify and podcast ads will prompt many to begin their search. The appalling state of the rental market is another factor – insecurity and sky-high rents mean those able to buy want to do so as the alternative is often so bleak. Government intervention to solve some of the problems in the letting sector have not yet been fully implemented and in the short term have led to a more acute shortage of homes.”
Rolande said that the early January bounce will “almost certainly slow down” over the coming weeks, however at this stage, 2024 is “shaping up to be significantly more positive for the property market than ’23”.
