The property market is rebounding, with an uptick in the number of buyers and sellers resulting in more sales this February.
House sales agreed in London are up 16% annually, according to Zoopla, more than double the UK average, with only the North East of England seeing a high number of sales at 17%.
The latest Zoopla House Price Index shows that the number of homes for sale are a fifth (21%) higher than a year ago, with buyer demand also up 11% and – crucially – sales agreed 15% higher than this time last year.
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Agreed sales jumped as demand from buyers was up by 11% and the number of homes for sale 21% higher than a year ago. House prices slipped 0.5% compared to a year earlier.
The average London house price is now £534,600, over twice that of the national average of £263,600.
In the Southern England regions – covering the Eastern, South East and South West regions, outside London – the average home price now sits at £344,000, 30% above the UK average.
Across the rest of the UK house price growth has slowed a lot over the last year, but in areas where house prices are at or below average, prices have not generally been falling.
“The housing market has proved very resilient to higher mortgage rates and cost of living pressures,” said Zoopla executive director Richard Donnell.
“More sales and more sellers show growing confidence amongst households and evidence that 4-5% mortgage rates are not a barrier to improving market conditions.
“The momentum in new sales being agreed has been building for the last five months and the sales market is on track for 1.1m sales over 2024 supported by new sellers coming to the market.
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“While sales are set to increase, we don’t expect house price growth to accelerate further in 2024.”
Zoopla said that the 1.1 million homes it expects to sell this year are approximately 10% more than in 2023.
While mortgage rates are falling in anticipation of the Bank of England cutting its base interest rate later this year, borrowers should still expect 4% to 5% rates over much of the year, Zoopla said.
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Estate agents Foxtons has said rent hikes and demand for tenants to get on the property ladder helped drive its revenue to £147m for the full year.
In an update this morning, the occasionally lightning-rod high street agency said the figure was up five per cent on last year and ahead of market expectations.
Amid a period of high inflation, landlords have been passing on price increases to their tenants, or selling up to avoid paying high rates on their mortgage.
This has led to limited supply, especially in the capital.
Foxtons said lettings, which represents 70 per cent of its group revenue, grew by 16 per cent and delivered over £100m revenue for the first time in Foxtons’ history.
“Lettings is expected to remain resilient in 2024 with the business continuing to display strong recurring and non-cyclical characteristics,” the board said today.
“As lettings supply and demand dynamics have largely normalised, rents are expected to stabilise and remain at historically elevated levels, whilst improvement in the supply of available rental properties provides a good opportunity to deliver further market share growth.”
They added: “In Sales, the group entered 2024 with an under-offer pipeline significantly ahead of the prior year despite weaker market conditions, which should support a good level of year-on-year revenue growth in Q1.
“Furthermore, continuing to deliver the sales market share levels achieved in H2 2023 is expected to drive further Sales revenue growth through 2024.”
Guy Gittins, the firm’s CEO, said: “We have delivered a year of market share growth and have ended the year with revenue and adjusted operating profit ahead of market expectations; our operational upgrades and investment in fee earners, training, data and brand, coupled with a return to driving innovation in the industry, are now consistently delivering material benefits to our competitiveness and market positioning, helping us to end 2023 as the UK’s fastest growing large lettings and sales agency brand.
“Our strategy to prioritise non-cyclical and recurring revenues has driven revenue and profit growth, despite a weaker sales market, and in contrast to prior years. This, combined with the operational progress and significant market share gains made to date, gives me confidence that our strategy is working, and we enter 2024 focused on delivering our strategic priorities and medium-term profit ambitions.”