The latest findings from the Royal Institution of Chartered Surveyors (RICS) UK Residential Market Survey for January 2024 indicate a promising turnaround in the UK property market. Positive shifts observed in key things such as buyer demand, agreed sales, and new instructions suggest a renewed sense of optimism among both buyers and sellers. That’s exactly what we were hoping to hear, and the future of property purchase and sale in the UK looks very optimistic in 2024!
UK Property Market Survey
According to the survey, January 2024 witnessed a notable upswing in buyer demand, soaring to a positive reading of +7%, a significant improvement from the previous month’s -3%. According to the survey, this surge marks the strongest demand recorded since February 2022, signifying a resurgence in interest from prospective homebuyers. Furthermore, agreed sales experienced a commendable shift from -5% to +5%, underscoring an increasing confidence in property transactions too. Something that estate agents will be very happy about.
Louis Mason, Content and Communications Director at Oportfolio Mortgages, commented on these encouraging developments, saying, “The recent improvements in the UK housing market are certainly promising signs for both buyers and sellers. The uptick in buyer demand and agreed sales reflects a growing confidence in the market’s stability, which bodes well for those looking to make a move in 2024. We are already seeing a huge increase in people looking to purchase property. Especially first-time buyer. Hopefully this will continue!”
Future UK Property Market Predictions
The survey also offers insight into future sales volume expectations, with a net balance of +14% of respondents anticipating an increase in sales over the next three months, and a significant +44% net balance projecting growth over the next twelve months. These forward-looking indicators hint at sustained momentum in the property market, fuelling expectations of continued recovery throughout the year. Despite the overall house price index remaining in negative territory at -18%, there are promising signs of a gradual slowdown in house price declines. This represents the most optimistic reading since October 2022, indicating a potential stabilisation in prices, particularly evident in London compared to other regions where price adjustments are ongoing.
Louis Mason also comments on the significance of these trends, remarking, “While the UK property market continues to face challenges, the steady easing of declines suggests a more balanced market environment. London’s resilience in particular indicates pockets of stability amidst broader market fluctuations, presenting opportunities for both buyers and sellers. Being London based mortgage brokers, we are very excited to see what the future holds.”
The Lettings Market
In the lettings market, the survey reveals a +28% net balance of respondents reporting an increase in tenant demand over the past three months, albeit at a more modest rate compared to previous years. However, new landlord instructions continue to decline, maintaining a -18% net balance for the second consecutive quarter. This supply-demand imbalance suggests a continued upward pressure on rental prices, albeit at a slower pace.
Speak To a Mortgage Broker in 2024
As the property market shows signs of recovery and stability, Louis Mason emphasised the importance of securing the right mortgage for prospective buyers. “At Oportfolio Mortgages, we understand the significance of finding the perfect mortgage tailored to individual needs,” he said. “Our expert advisors are dedicated to guiding clients through every step of the process, ensuring they secure the most competitive rates and favourable terms, making their dream of homeownership a reality.”
With a comprehensive range of mortgage solutions and personalised advice, Oportfolio Mortgages is ready to assist buyers in navigating the evolving landscape of the UK housing market in 2024. Whether purchasing a first home or expanding an investment portfolio, their expertise and dedication to client satisfaction make them the ideal partner for achieving property ownership goals. If you or anyone you know is interested in a new property purchase in 2024, please feel free to give our team a call today. We are here to help.