Key demand metrics, such as prospective buyer registrations and viewings, have seen a slight decline as consumer focus shifts towards the holiday season, according to Propertymark’s Housing Insight Report.
The average number of new prospective buyers registered per branch decreased from 74 in May 2024 to 69 in June 2024. New supply, as measured by new sales instructions, decreased on the previous month. On average, around 10 homes were placed for sale per member branch in June 2024.
What’s more, the average number of sales agreed per member branch decreased in June 2024. Nathan Emerson, Propertymark CEO commented:
“June marks the beginning of the Great British Summer and a seasonal change in the activity of home buyers. Key demand metrics, including the number of prospective buyer registrations and the number of viewings, have reduced slightly as consumer attention turns to the holiday season.
The General Election has also had a moderate effect. Although we expect activity to remain subdued in July, pent-up demand and robust stock levels will see increased activity towards the end of the summer period. A widely anticipated base rate cut would also help to stimulate the market. In the residential lettings sector supply and demand remains imbalanced, with tenant demand increasing in June and stock levels marginally decreasing. Rents continue to rise overall, but there are clear regional and market variations.
Overall, we share our members’ optimistic outlook for each sector and look forward to working with the new government to drive positive change within the housing system.”
According to Zoopla’s House Price Index, the improved outlook for the housing market is bolstered by an increased number of homes for sale – higher than at any point in the previous six years. This increased level of choice for buyers is supporting more sales going through.
More sellers naturally means more buyers who appear motivated by a range of reasons. In particular Zoopla is seeing that many would-be movers are upsizers – those looking for a larger home, usually to accommodate a growing family.
While growth over the last 12 months has been largely static (increasing by just 0.1%) the regional view shows more of a mixed picture, and somewhat of a north-south divide as affordability continues to be more of a constraint in southern England.
For example, while Belfast has seen a 4.3% increase (and Northern Ireland more widely a 3.9% increase) and Scotland has seen an overall increase of 1.4%, South East England saw a fall of -1%, South West England a drop of -0.7% and in the East of England, prices are down -1.2%. Commenting on the latest report, Richard Donnell, Executive Director at Zoopla says:
“The housing market is starting to hot up after a stone cold 2023. There are clear signs of growing confidence amongst buyers and sellers with many more homes for sale and buyers paying an increased proportion of the asking price. We expect to see more sales but house price inflation will be kept in check by more supply and affordability pressures keeping a lid on buying power, especially across southern England.
While we don’t expect to see any impact from the new Government, or the King’s Speech specifically, in the next 12-18 months, it is possible we will in the longer term. The housing market is essentially an extension of the UK economy. Government policies focused on economic growth that feeds into income growth will help support both home buyers and renters. The Bank of England will have more impact on the market in the short term and much depends on the timing of the first base rate cut.”
