The trajectory for the UK residential sector in 2024 is steering towards a promising recovery, as highlighted in the January 2024 RICS UK Residential Market Survey. This comprehensive report reveals positive advancements in key metrics, fuelled significantly by the anticipation of future interest rate cuts by the Bank of England. Ives & Co, a leading solicitor in Nottingham, can assist you with residental conveyancing.
On a national scale, the surge in new buyer enquiries, reaching +7% in January from December’s -3%, signals a steady revival in buyer demand. Although relatively modest, this uptick represents the most robust demand since February 2022. Equally encouraging is the shift in sentiment for agreed sales, climbing from -5% to +5%, with respondents expressing optimism about sales picking up in the next three months, as indicated by +14% on balance. Looking further ahead, a substantial +44% believe in the prospective increase in sales volumes over the next twelve months.
While the overall house prices nationally showed a -18% result, indicating a continued decline, this trend has been strengthening for five consecutive months, presenting the strongest reading since October 2022. London stands out with a more stabilised pricing trend this month, while respondents from Scotland and the North West of England report a generally flat picture in recent months.
Market activity data from Twenty7tec further reinforces the positive outlook, revealing that Monday recorded the busiest day on record for mortgage searches. Purchase mortgage searches witnessed a remarkable increase of 120.1% in January 2024 compared to December 2023, and a notable 13% surge compared to January 2023. Remortgage searches also saw substantial growth, rising by 93.9% compared to December 2023 and 26.8% compared to January 2023.
The buoyancy extends to specific mortgage categories, with Buy To Let mortgage searches surging by 96.5% nationwide in January 2024 compared to December 2023, and a 5.2% increase compared to January 2023. First Time Buyers are actively exploring the market, with searches increasing by 125.9% nationwide in January 2024 compared to December 2023, and a significant 16.9% rise compared to January 2023.
Examining mortgage product searches, two-year fixed mortgages dominate, accounting for 49.51% of all fixed product searches, a substantial rise from 40.7% in January 2023. Three- to five-year fixed mortgages constitute 31.04%, showing a slight decrease from 33.9% in January 2023, while five- to ten-year fixed mortgages now account for 19.45%, a notable increase from 25.4% in January 2023.
In essence, the UK residential sector appears poised for a robust rebound in 2024, offering a landscape of opportunity for both sellers and buyers. As the market dynamics continue to evolve positively, it’s an exciting time for those engaged in the residential property market in the UK.
