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Buyer Demand Continues to Surge in UK Housing Market

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    Buyer Demand & Supply Listings Continue to Show Recovery in 2024

    Research suggests that buyer demand surged in February, driven by a significant increase in the supply of realistically priced properties.

    This is the latest insight from industry experts to show that 2024 is on a much stronger footing than 2023 regarding the UK housing market.

    Further Reading: Consult our buying a buy-to-let property guide for more property investment insights. Also, learn about where the best buy-to-let areas are with some of our helpful articles.

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      What Is UK Property Buyer Demand Like for February?

      According to data from TwentyEA (who are part of the TwentyCi group), the number of listings marked as sold subject to the contract (SSTC) rose by 23% in February compared to the same month last year and was 9% higher than in 2019.

      UK-wide data indicated 105,878 sales were agreed upon in February, marking a 23% increase from February 2023 and a 9.2% increase from February 2019.

      February saw 148,442 new instructions, up 11.45% from the previous month and 14.9% from February 2023.

      The average asking price reached £426,076, with £349,187 for an exchanged property. The percentage of the initial asking price achieved was 98.28%, up from 97.96% in February 2023.

      Additionally, fall-throughs decreased from 27.14% in February 2023 to 24.66% in February 2024.

      Find Out More: If you’re interested in buying a rental property, be sure to read our guide on how to build a property portfolio.

      Executive director of TwentyEA, Katy Billany, said: “While the year-on-year rise in deals being struck is significant, it’s also extremely encouraging to see a large increase compared with 2019 – the last ‘normal’ year within the market before it was affected by the pandemic and Liz Truss’ Budget.

      “Although mortgage rates have reduced, they are still much higher than they were two years ago. Therefore, our latest stats show buyer demand remains upbeat and sellers are determined despite the rate rises, an impactful cost of living crisis and a possible change of Government. These numbers are indicative of sellers who have become more realistic around pricing as well as a market which is seeming much more positive overall.”

      See More: Make sure you know your long-term investment goals with handy resources, such as our guide on the risks of off-plan property investing.

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      What About Supply in the Property Market?

      Comparatively, the rise in buyer demand is mirrored by an increase in properties listed for sale.

      A recent analysis by estate agency Jackson-Stops revealed that the average volume of properties listed for sale in the UK increased significantly in 2023 compared to 2022.

      The Isle of Wight, Norfolk, and Somerset experienced the most significant annual increases in property listings, with rises of 83%, 78%, and 75%, respectively.

      In Jackson-Stops’ branch data, Chelmsford showed a notable 79% surge in listings, followed closely by Sevenoaks and Chester.

      Chairman of Jackson-Stops, Nick Leeming, said: “We are at last observing a rebalancing of supply and demand in out-of-market hotspots, as the influx of available properties bridges the demand gap and underscores commitment from movers to make big life changes. A boost in volume gives sellers the reassurance that there are good houses to move on to, one of the main barriers for house hunters in 2022 due to chronic lack of supply.

      “With the probable reduction in interest rates as inflation cools, the current market not only favours sellers but also benefits potential buyers, particularly with fixed-rate products improving and a higher rate of mortgage approvals.”

      Enjoy more buy-to-let insights with our property investment area guides. Some of our most recent ones include:

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      Dale Barham

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      Dale is a property content writer at RWinvest. Keeping a close eye on the UK property market, Dale helps our readers stay informed and up to date on the latest market news and statistics.