UK Housing Market Sees Surge in Supply and New Listings

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Foxtons Research Shows Sustained Growth in UK Lettings Market

As we head towards Spring 2024, buy-to-let investors may enjoy a reinvigorated UK property market, with housing supply and new instructions on the rise.

While 2023 was a subdued year for property investment, 2024 looks to be a more active year for buyers and sellers, according to the latest data from Foxtons.

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What Does Foxtons Data Say About the UK Property Market?

Foxtons’ recent data reveals a 25% surge in new instructions in January 2024 compared to January 2023.

In December, applicant demand shot up by 93%, a common trend during 2023 in the lettings market. Although January 2024 saw a 10% dip in demand from January 2023, it marked a substantial 71% increase from January 2019.

Analysis by Foxtons shows a sustained growth in new instructions since 2023, with London experiencing a 65% jump in January 2024 compared to December 2023.

Rental prices in January 2024 dropped by 1% compared to the same period in 2023, likely due to increased supply.

Managing Director of Lettings at Foxtons, Gareth Atkins, said: “As forecasted, the start of 2024 has seen a more normalised lettings market, and as new properties come to the market, it will be important for landlords to keep track of how that affects their asset.

“The London lettings market can move quickly and be very localised, so a good agent providing timely market analysis and adjusting the strategies accordingly will help to attract the right qualified tenants.”

Find Out More: Check out our guides on how to make money with property and investing in real estate in the UK for more buy-to-let insights!

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What Is the Outlook for the UK Private Rental Sector?

The 26% decrease year-on-year in new tenants per new instruction shows a move towards a more balanced lettings market with increased supply and reduced demand. However, the number of applicants per new instruction rose by 56% compared to January 2019.

Managing Director of Institutional PRS and Build to Rent at Foxtons, Sarah Tonkinson, said: “We are not expecting massive price growth across London’s lettings market this year, around 0 and 2%. The market is still competitive; January 2024 had 56% more applicants per new instruction than in 2019 – which we consider to be the last year that there was a more normalised lettings market.

“So while there is opportunity, landlords may need to take a more active approach to pricing and work with agents to place tenants and minimise void periods.”

While the London buy-to-let market may not enjoy phenomenal rental price growth this year, the broader UK rental price average is expected to increase by 6%, according to Savills. In addition, Savills also forecasts that the North West buy-to-let market could enjoy 9.2% returns over the next 12 months, suggesting potentially good investment opportunities for UK buy-to-let property north of the capital. For that reason, investors may want to look at the popular property market in Liverpool or Manchester to find properties that will appeal to tenants and command a significant rental price.

Discover more about the UK property market with our latest buy-to-let area guides:

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Author

Dale Barham

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.