2024 Unwrapped: Property Edition
As we bid farewell to 2024, the UK's prime property market has demonstrated remarkable resilience and adaptability in the face of ongoing economic and political challenges.
Despite the backdrop of a 'permacrisis', the property sector has shown robust performance, particularly in the premium sector. Here we evaluate the UK premium property market in 2024.
Market Activity Surges
November 2024 saw significant increases in market activity compared to both the previous year and the six-year average:
- New listings rose by 11.93% year-on-year and 20.09% above the six-year average
- Available properties increased by 14.19% compared to last year and 34.76% higher than the six-year average
- Sales agreed jumped 14.77% year-on-year and 15.81% above the six-year average
These figures indicate that the election did not dampen enthusiasm in the high-end market.
Mortgage Approvals and Transactions
The market's strength is further evidenced by impressive mortgage and transaction data:
- Mortgage approvals surged 42.59% year-on-year, reaching their highest level since August 2022
- Transactions were up 21% compared to last year, exceeding 100,000 in a month for the first time since August 2022
Pricing and Seller Behaviour
The market saw an influx of sellers returning after previous attempts to sell, along with a notable increase in price adjustments. This suggests sellers are responding to stronger market conditions and increased competition.
Impact of the Budget
While there were concerns about the budget's impact, a Savills survey revealed that 54% of respondents said it would not affect their moving plans, with 28% actually more likely to move. However, investors showed less enthusiasm due to ongoing challenges with tax, legislation, and interest rates.
Interest Rates and Mortgage Trends
The base rate saw two 0.25% reductions in 2024, dropping from 5.25% to 4.75%. Predictions suggest potential further cuts in 2025, possibly bringing the rate down to 3.75%. Mortgage rates for buyers have fallen by 1% over the year, although they saw a slight increase following the Autumn Budget.
Looking Ahead to 2025
The market is poised for a strong 2025, with cautious optimism prevailing. Key factors include:
- Steadily decreasing interest rates
- Increased property choice, with stock levels at a 10-year high
- Projected 1.15 million transactions, approaching the 50-year average of 1.2 million
Advice for Buyers and Sellers
For those looking to enter the market, February and March are historically the best months to sell, with properties selling fastest and achieving the highest percentage of sales.
In conclusion, the UK's premium property market has shown remarkable strength in 2024, overcoming various challenges. With positive indicators for 2025, both buyers and sellers can approach the new year with confidence, albeit with a keen eye on economic developments and market trends.
If you are looking to sell your home in 2025, why not get in contact with your local By Design office today to see how we can help you.
Article credit: Simon Gates - Opening The Gates
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