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Housing Supply Up 18% in UK Property Market

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    Housing Supply Improves Across the UK, Indicating a Healthier Property Market

    Buy-to-let investors have seen a much more positive start to 2024, with the housing supply increasing compared to last year.

    While 2023 was marred by low supply and activity levels, the latest Propertymark data shows that supply has increased by a healthy margin.

    Let’s look at the data in more detail.

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      What Does Housing Supply Look Like in the UK Property Market in 2024?

      Propertymark’s latest data indicates a temporary slowdown in demand within the residential sales sector. The number of new prospective buyers per branch spiked in January 2024 but has since levelled off, with fewer buyers registered in February 2024 than last year. Viewing numbers have also reached a plateau, remaining consistent with 2023 figures.

      Despite a 3% drop in potential buyers, agents reported an 18% surge in new properties entering the market in February compared to January. Moreover, the average number of sales agreed per branch member rose by approximately 19% from January to February.

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      CEO of Propertymark, Nathan Emerson, had the following to say about the data: “Interest rates remain challenging, GDP has stagnated, and broader economic indicators, such as mortgage arrears, are trending upwards. However, there is light at the end of the tunnel, with inflation continuing to fall.

      “In the residential sales sector, demand has temporarily slowed following the January post-Christmas bounce. On the supply side, our members are busy with new instructions, which is increasing stock levels. This imbalance may lead to further price corrections, but only in the short term. As we progress into March and beyond, the re-establishment of seasonal trends should result in positive progress in both the sales and lettings sectors.”

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      What Else Is Happening in the UK Property Market?

      Elsewhere in the UK property market, Nationwide’s latest House Price Index reveals that March 2024 maintained a positive trend in annual price growth. Property prices increased by 1.6% compared to last year, showing an improvement from the 1.2% growth seen in February.

      The average price for March 2024 stood at £261,142, surpassing February’s figure of £260,420.

      The Nationwide data highlights a clear division between property prices in the North and South of the UK. Northern England experienced a 1.7% increase in prices compared to the previous year, while the South saw a decline of 0.3%.

      And while the Propertymark data suggests buyer demand is down, other sources show that the opposite could be true.

      For example, Zoopla reports a 9% increase in sales agreements compared to last year. Additionally, the UK has experienced a 7% uptick in home sales agreements in Q1 2024 compared to Q1 2023. According to their analysis, this surge is motivating more sellers to list their homes for sale, with a 20% rise compared to last year.

      For more information on regional property investment, take a look at our buy-to-let area guides:

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      Author

      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.

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