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Property for sale by Auction A man and a woman stand closely together, looking at a display window filled with illuminated images of houses. The photos showcase various properties, presumably for sale. Both individuals are dressed in dark jackets, with their backs to the camera, as the UK property market expands again with further growth expected across the autumn. Presented by World of Auctions

UK Property Market Expands Again!! With Further Growth Expected Across the Autumn

 

The UK property market is experiencing a significant expansion, with the number of homes listed for sale reaching a seven-year high. This surge in listings is expected to drive further growth throughout the autumn, as reported by Zoopla. This blog will analyse the current market trends, including property listings and auctions as of August 2024.

Property for sale by Auction A diverse group of people works on laptops outdoors near rows of houses. Behind them, a graph with fluctuating lines and icons related to housing and finance is superimposed over the scene, indicating trends and data analysis. Presented by World of Auctions
A diverse group of people works on laptops outdoors near rows of houses. Behind them, a graph with fluctuating lines and icons related to housing and finance is superimposed over the scene, indicating trends and data analysis. Presented by World of Auctions

 

Market Analysis

 

Surge in Property Listings

The UK property market has seen a remarkable increase in the number of homes listed for sale, hitting a seven-year high. This surge in supply is attributed to a combination of factors, including increased seller activity and a recovering housing market. The average estate agent now has 33 unsold properties listed, the highest level since 2017. This increased supply is expected to temper house price inflation into 2025.

Housing market latest news

 

House Prices and Sales

Despite the high number of listings, house prices have shown modest growth. The average UK house price has risen by 1.4% in the first seven months of 2024 and is projected to be 2.5% higher by the end of the year. However, the surge in supply means sellers should not expect high prices, and many are cutting their asking prices to attract buyers. Homes requiring a price reduction take more than twice as long to sell as those priced correctly from the start.

Property for sale by Auction A graph on an architect's draft table titled "Projected House Prices" shows an upward trend from 2018 to 2024. The graph includes labeled data points and intersecting lines, with various notes and financial figures, emphasizing rising housing market values. Presented by World of Auctions
A graph on an architect’s draft table titled “Projected House Prices” shows an upward trend from 2018 to 2024. The graph includes labelled data points and intersecting lines, with various notes and financial figures, emphasizing rising housing market values. Presented by World of Auctions

 

Mortgage Rates and Affordability

The average five-year fixed-rate mortgage with a 25% deposit has fallen to 4.55% from 5.55% a year ago, making borrowing slightly more affordable.

However, a typical mortgage now costs 39% of the median full-time salary, up from 30% before the Covid-19 pandemic, meaning that in real terms affordability remains a concern for many buyers.

 

Buyer Demand and Sales Agreements

Buyer demand has increased by 20%, contributing to a 23% year-on-year increase in agreed sales. This heightened demand is driven by a combination of factors, including lower mortgage rates and increased buyer confidence. However, buyers remain price-sensitive, and homes that are overpriced can take significantly longer to sell.

 

Auction Market Insights

 

Increased Activity and Online Auctions

The property auction market has been teeming with activity, reflecting broader economic patterns and buyer sentiment. The total lots offered in July surged by 36.9% compared to the same period last year, while lots sold saw an even more impressive 41.3% increase. Online auctions have become the norm, facilitating broader, global participation and making the auction process more accessible.

 

10th September 2024 – Timed Property and Land

 

Buyer Preferences and Trends

There has been a noticeable shift in buyer interest towards properties with green credentials and those offering opportunities for value addition, such as properties requiring renovation or those with planning permission. Areas with substantial infrastructure investment have also attracted increased interest from buyers looking to capitalize on potential future value appreciation.

 

Impact of Rising Interest Rates and Supply Chain Disruptions

Rising interest rates have affected investors’ borrowing power, tempering the bidding fervour. Additionally, persistent supply chain disruptions have led to higher costs for renovation and development, impacting the final hammer price for properties needing work.

 

Notable Sales and Market Outlook

Notable sales include a historic manor house in the Cotswolds fetching double its guide price, demonstrating the premium buyers are prepared to pay for unique and well-situated properties. The property auction market is anticipated to maintain its current pace, with the emphasis on digital auctions intensifying into 2025.

 

Conclusion

The UK property market is experiencing a significant expansion, with a record-high number of listings and modest house price growth. The auction market is also thriving, with increased activity and a shift towards online auctions. As the autumn season approaches, sellers are advised to set realistic asking prices to secure timely sales, while buyers continue to seek properties that offer value addition and align with sustainability trends. The market outlook remains positive, with further growth expected across the autumn.

 

This blog synthesizes information from various sources to provide a comprehensive analysis of the UK property market and auction trends as of August 2024.