The number of property sales under contract increased by 23% in the third quarter of 2024 compared to the same period in 2023, as revealed by data from TwentyEA. This substantial rise in sales activity reflects a notable recovery in the property market, especially after a slower start to the year. Buyers seem more confident, likely due to stabilising interest rates and a more positive economic outlook.
All regions across the UK experienced an upswing in sales, with the East Midlands and East of England standing out. Both regions recorded a 28% increase in sales, highlighting a particularly strong demand for properties in these areas. This trend may suggest that these regions are becoming more attractive to buyers due to a combination of affordability and desirable living conditions.
Some of the most significant growth in sales occurred in major cities like Southampton, Peterborough, and Birmingham. These cities saw the highest percentage increases in sales during Q3 2024, pointing to a resurgence in urban living. This trend could be driven by increasing employment opportunities, improved infrastructure, or more people opting for city lifestyles as remote working becomes more flexible.
In addition to the rise in sales, the number of properties available on the market also saw a significant increase. The supply of homes for sale reached 456,902 in Q3 2024, up 9% from 419,807 during the same period in 2023. This increase in supply is crucial for meeting the rising demand and providing more options for potential buyers. The property market has not seen this level of availability in the past six years, suggesting a more balanced market moving forward.
Overall, the combination of rising sales and increasing property supply paints a positive picture for the UK housing market. As the year progresses, it will be interesting to see whether this trend continues, especially with ongoing economic uncertainties and potential changes to interest rates.
Exchanges rose by 10.9% compared to the same period last year, reflecting a notable increase in market activity. The growth in exchanges suggests that more property transactions are successfully reaching completion, which could be a sign of improved confidence among both buyers and sellers in the housing market.
Katy Billany, executive director of TwentyEA, commented on the recent market trends, stating that the rise in sales can be linked to lower mortgage rates, which have spurred an increase in demand from homebuyers. This suggests that the reduction in borrowing costs is playing a key role in driving market growth and encouraging more people to enter the property ladder or move home.
Billany also noted that the Bank of England’s decision to hold the base rate steady has added an element of stability to the market. This move has provided reassurance to homebuyers and investors, helping to reduce uncertainty and encourage more transactions. The steady base rate has likely contributed to maintaining demand, despite the broader economic challenges.
Moreover, the demand for homes has remained resilient, even after July’s parliamentary election. Billany pointed out that this suggests the political landscape has not significantly impacted buyer behaviour, and the housing market has continued to perform well regardless of the election results.
On the other hand, some homeowners are feeling the pressure of financial strain, particularly those with fixed-rate mortgages. According to Billany, unaffordability is forcing some owners to sell, highlighting the financial challenges that remain for a portion of the market. The average asking price for residential properties in Q3 2024 was £436,000, a slight increase from £434,200 in Q3 2023, though down by £20,000 from Q2, indicating some fluctuations in pricing.
Price reductions have become increasingly common in the housing market, with a rise of 8.6% compared to the same period in 2023. In 2024, 38% of all property listings experienced at least one price reduction, a sign of sellers adjusting to shifting demand and broader economic factors. This trend reflects how homeowners are recalibrating their expectations in response to the evolving market landscape, which has been influenced by economic uncertainty and fluctuating interest rates.
Katy Billany, executive director of TwentyEA, provided insight into the current situation, noting that market confidence and overall sentiment remain the driving forces behind these changes. While there has been a notable rise in sales compared to last year, many potential buyers are still taking a cautious approach. She pointed out that a significant portion of prospective buyers are likely holding off on making purchasing decisions until after Labour’s upcoming Budget, which is set to be released in the coming weeks. This is expected to have a considerable impact on market activity, as buyers wait to assess the implications of the budget on their financial circumstances and the housing market overall.
Billany further emphasised that the outcome of the Budget will be a key factor in determining the future direction of the property market. How the measures introduced in the Budget affect property owners will directly influence whether the current momentum in sales continues, or if the market faces further challenges. Buyers and sellers alike are expected to pay close attention to these developments, as they will shape the broader housing landscape in the months to come.
The uncertainty surrounding the Budget has left some homeowners and prospective buyers in a state of limbo, as they await more concrete information before making decisions. Billany’s remarks highlight the delicate balance between rising demand and the cautious behaviour of buyers who are closely watching for signals of market stability or disruption. The next few weeks will be crucial in determining how the property market evolves as new financial policies come into effect.
The percentage of properties for sale that were previously rented has reached its highest point in the past decade. In Q3 2024, 11.3% of new property listings had been rental properties within the last three years, a significant increase from 6.8% during the same period in 2023. This shift highlights how more landlords are opting to sell, potentially influenced by changing regulations and economic conditions affecting the rental market.
Alongside this trend, the market share of property exchanges involving self-employed estate agents has seen notable growth. In Q3 2024, the share of exchanges handled by self-employed agents rose by 8.1%, continuing a pattern of steady expansion in recent years. The self-employed estate agent model has become more popular, offering agents greater flexibility and control over their work, which is drawing increasing numbers into this way of working.
Katy Billany, executive director of TwentyEA, pointed out the ongoing rise of self-employed agents under brands like eXp, The Agency UK, and Keller Williams. She noted that self-employed agents have experienced a 22.8% increase in market presence compared to 2023, indicating that more agents are finding the self-employed model attractive. The rise in popularity of this model is seen as part of a larger industry shift, where agents prefer the autonomy and benefits it provides over traditional employment models.
As a collective, the self-employed estate agents are now larger in terms of market share than some of the biggest names in the estate agency industry, such as Purplebricks and William H Brown. This shows a broader change in how estate agents are choosing to operate, with many finding that the self-employed route offers them greater opportunities for growth and success. This trend could continue to reshape the industry as more agents make the switch to self-employment.
These developments signal significant changes in both the rental property market and the estate agency sector. With landlords increasingly selling their properties and self-employed agents gaining market share, the housing market is seeing shifts that reflect broader economic conditions and the changing preferences of professionals within the industry.
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