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UK Premium Property Market Update Q1 2024

With Easter behind us and the clocks moving forward, it’s evident that Spring has arrived, bringing along with it the conclusion of Q1 2024.
UK Premium Property Market Update Q1 2024
Here are some of the key stats comparing this quarter to the same period in 2023 for the UK premium property market, which I define as £1m+:

  1. New listings surged by 23.80%.
  2. The number of properties for sale increased by 19.03%.
  3. Sales agreed rose by 16.51%.
  4. Price changes climbed 17.75%.
  5. Properties withdrawing from the market saw an uptick of 11.06%.

So, what does this all mean and what are the opportunities that lie ahead in Q2?

The rise in new listings signals heightened confidence among homeowners looking to sell at the top end of the market.

This is great news for buyers as it gives them more choice and reason to enter the market after sitting tight with a lack of options and rising interest rates over the past couple of years. 

The positive sentiment in the market has filtered through from sellers to buyers with sales being agreed on the up as well.

However, it is not all sunshine and rainbows as the number of price reductions and properties withdrawing from the market have continued to increase as well.

There are still a number of sellers being overly optimistic on their initial asking price with 32.95% of properties having had a price reduction in Q1 and 12.9% of which have had multiple price drops.

The number of sales being agreed and price reductions happening highlights there is not a demand issue, but more of a price sensitive issue and sellers perhaps not factoring in that they have more competition from other sellers in the market and more choice for buyers who are having to factor in higher interest rates into their affordability.

With more choice comes more negotiating power for buyers and this can be seen with stats from Zoopla highlighting that 41% of new sales are being agreed at 5% below the asking price and 21% of new sales for more than 10% below the asking price. 

Interestingly, in Q1 2024, 33% of properties that had withdrawn from the market did so following a price reduction according to data from Spectre. 

The latest data from Rightmove has also found that properties that reduce their asking price have a 56% chance of selling versus a 76% chance for those that price correctly from the outset.

In essence, there is nothing new here and the narrative is all too familiar.

Pricing accuracy from the outset correlates strongly with successful sales, a fact that underscores the importance of informed seller education. 

Knowing all of the above information and presenting it to sellers in the correct way will help you to convert more business, justify higher fees, and increase your chances of selling properties at the premium end of the market.

In summary, Q1 2024 has seen a promising start for the UK premium property market, yet it also serves as a reminder of the ongoing imperative to educate sellers on the importance of pricing precision in a competitive market. 

Thank you for reading.

Simon Gates - Opening The Gates

P.S. You can CLICK HERE to watch my Q1 2024 UK property market update on YouTube.