The number of newly listed properties for sale has increased by 15% compared to the same period last year. This signifies that more sellers are confident in putting their properties on the market, with pricing that reflects increased confidence. It is noteworthy that, although the number of properties for sale is not in excess, the listed property quantity has surpassed the growth in potential buyer numbers. Therefore, for sellers looking to sell their properties quickly, pricing must be more attractive.
Buyer demand in the first week of 2024 has increased by 5% compared to the same period last year. This implies that more potential buyers are becoming active, preparing to fulfill their moving plans in the new year. Particularly noteworthy is the record level of mortgage inquiries recorded on the Rightmove platform during the Christmas period, signaling early signs of movers preparing to take action in 2024. People are starting to understand their affordability and conditions, showing a higher interest in home buying.
Agreed-upon sales have increased by 20% compared to the first week of last year. This indicates a robust recovery in buyer confidence, with a willingness to engage in more property transactions. A significant contributing factor is the substantial decrease in mortgage interest rates. Currently, the average rate for a five-year fixed-rate mortgage is 4.86%, a significant drop from 6.11% in July of the previous year. This makes it easier for buyers to obtain low-cost loans, increasing the attractiveness of home buying.
The report also notes that, despite the average price still being 0.7% lower than the same period last year, the average listing price across the UK has risen by 1.3% from the previous month, reaching £359,748 per property. This is the largest price increase from December to January since December 2020, more than doubling the 20-year average level of 0.6%. These data points indicate that market activity in the first week of the new year is significantly stronger than a year ago, with increased confidence from both sellers and buyers in the market outlook.
In the London area, house prices have fallen by 0.5% year-on-year, with the current average property price at £664,550. However, in different administrative areas of London, Wandsworth (+5.8%), Westminster (+2.9%), and Lambeth (+1.7%) have the highest annual growth rates. Particularly, Lambeth, located on the south bank of the Thames, not only tops the list in terms of house price growth but also ranks in the top three for rental growth. Lambeth, with its magnificent river views and rich cultural activities, attracts residents of different backgrounds and ages.
In terms of rent, the average rental growth in the UK is 8.0% year-on-year, with a slight 0.9% decrease from the previous month. The average rental growth in the London area is 6%, reaching £2,127 per month. In Greater London, tenants on average need to allocate 39.6% of their income to pay rent, reflecting a 3.2% increase compared to the same period last year. This reflects one aspect of the supply-demand contradiction in the UK real estate market.
