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January 2024 UK Real Estate Market Report: Signs of Gradual Recovery
Jan 23, 2024
January 2024 UK Real Estate Market Report: Signs of Gradual Recovery London
By   Internet
  • City News
  • UK housing market
  • UK property
  • housing market report
  • housing market recovery
Abstract: The latest report from the Rightmove platform in January 2024 indicates positive signs in the UK real estate market.

The report highlights that house prices this year have not experienced the predicted 3% decline but, instead, achieved a 1.3% increase. This suggests a gradual recovery in the UK real estate market.

The report notes that the average asking price from new sellers has increased by 1.3% compared to the previous month, reaching £359,748. Although the average house price remains 0.7% lower than the same period last year, this marks the most significant monthly increase in house prices since December 2020.

Simultaneously, the quantity of newly listed properties for sale has increased by 15% compared to the same period last year. Buyer demand is 5% higher than the same period last year, with a transaction rate that is 20% higher. These figures indicate a gradual restoration of buyer confidence, portraying a positive trend in the real estate market.

Moreover, mortgage interest rates contribute positively to the market. Currently, the average interest rate for a 5-year mortgage is 4.86%, lower than the peak of 6.11% in July last year. This is advantageous for mortgage buyers. According to forecasts from major companies, future mortgage rates are expected to further decrease. These signs indicate a more stable mortgage market this year after the fluctuations experienced since September 2022.

The report also mentions a substantial increase in sellers on the Rightmove platform, and the quantity of properties entering the market for sale is 15% higher than the same period last year. While there is not an oversupply of properties for sale, exceeding only 1% compared to 2019, the rate of increase in listed properties is surpassing the growth rate of inquiring buyers. This implies that if sellers want to sell their properties quickly, pricing must be more attractive.

January 2024 UK Real Estate Market Report: Signs of Gradual Recovery

The report emphasizes the importance of pricing. Due to high mortgage interest rates and tightened living costs limiting buyers' purchasing power, properties priced too high are unlikely to attract buyers. Therefore, sellers should set property prices based on local market norms to have a better chance of attracting buyers rather than being swayed by the New Year's enthusiasm.

The director also points out that data on newly listed properties, transaction rates, inquiry rates, mortgage volumes, etc., all indicate a strong momentum in the current real estate market. However, the report also mentions that the upcoming general election in the second half of the year is expected to impact real estate market activities. Therefore, sellers should closely monitor the election and other relevant economic news.

From the report, it is evident that house price performance varies in different regions of the UK. The Southeast of England and Northwest England, including Manchester, experienced the most significant increases, reaching 2.4% and 1.2%, respectively. Additionally, several regions, including Northwest England, Southwest England, and Wales, saw relative increases in house prices compared to the same period last year. Notably, house prices in Northwest England have been consistently higher than the same period last year for four consecutive months.

In terms of house price performance in various administrative regions of London, most areas experienced a slight decline in prices compared to the previous month but still achieved growth compared to the same period last year. Wandsworth achieved a monthly increase of 0.5%, with an annual increase reaching 5.8%. Westminster and Lambeth saw house prices rise by 2.9% and 1.7%, respectively, compared to the same period last year.

The article also emphasizes Greenwich, the sixth position in London. Greenwich, located in southeast London, is a historically rich area known for its maritime history, Prime Meridian Line, and Greenwich Mean Time. The region boasts abundant cultural and artistic resources, convenient transportation, and high-quality educational resources. The house price changes over the past year show that Greenwich experienced a significant increase in January after a consecutive decline in November and December.

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January 2024 UK Real Estate Market Report: Signs of Gradual Recovery
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