UK Property Sales Highest in Three Years

According to data from Zoopla, the number of sales agreed in the four weeks to September 21st 2024 rose by an annual rate of 25% – the most drastic increase since spring 2021.

During the early months of 2021, the property market experienced a rebound after the first Covid-19 lockdown, but house sales improved on those numbers in autumn 2024.

Why, though? To find out why the housing market has experienced a short-term boom, continue reading.

Why has the property market had such a sudden increase?

According to Zoopla’s research, inquiries to estate agents from prospective buyers have increased by an annual rate of 26% over the same period, marking the fastest pace in over three years.

Executive director at Zoopla, Richard Donnell, has explained what’s behind the sudden increase of interest from buyers. He said: “Lower mortgage rates are delivering a much-needed confidence boost to homeowners, many of whom have sat on the sidelines over the past two years.”

Mortgage rates in the UK are at their lowest level in over a year and are “supporting double-digit growth in all the key measures of sales market activity”.

How have mortgage rates changed?

Data from the Bank of England shows that, in August 2024, mortgage approvals increased to their highest level in two years. Meanwhile, mortgage lender, Nationwide, reported that approvals rose at their fastest pace in two years.

The average two-year fixed-rate mortgage, which contains a 60% loan-to-value, was 4.7% in August. This had decreased by 0.2% from July and is a lot lower than the 6.4% on offer to mortgage applicants in August 2023.

So, it’s clear to see that the decrease in mortgage rates, and the Bank of England base rate inflation dropping from 5.25% to 5%, have pushed more prospective buyers into purchasing a home.

These individuals have seen it as an ideal opportunity to purchase a house in the current climate, resulting in improved house sale statistics for September 2024.

Sellers have also noticed this trend with Zoopla noting a 16% increase in new properties being listed on the market and a 12% rise in the stock of homes for sale.

Have taxes impacted the property market?

Some suggestions rumoured new taxes have pushed many homeowners to sell property.

There is speculation that tax changes in October 2024 could impact investors and individuals with multiple homes.

More homes in coastal and rural areas have become available on the property market in recent weeks. This could be a direct result of fears over taxes and local councils doubling council tax for second homes.

In a bid to avoid a large tax bill, it’s thought that many homeowners have decided to put their second homes up for sale before the new budget is announced by the Labour government.

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We also keep a close eye on the property market and mortgage rates so if you ever have a question about the industry, don’t hesitate to get in touch with us.

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