Buyer demand rises as sellers become ‘more realistic’ - research

Buyer demand shot up in February, helped by a surge in ‘realistically priced’ property supply, research suggests.

Data from TwentyEA shows the number of listings marked as sold subject to contract (SSTC) jumped by 23% in February compared with the same month last year and was 9% higher than a relatively normal year in 2019.

The UK-wide data showed 105,878 sales were agreed in February, which was 23% above the level in February 2023 at 86,395, and 9.2% above the same month in 2019 at 96,950.

In February, there were 148,442 new instructions - 11.45% higher than the previous month and 14.9% higher than in February 2023, while the average asking price reached £426,076 and £349,187 for an exchanged property.  

The percentage of initial asking price achieved was 98.28% - up from 97.96% in February 2023.  

Fall-throughs were also down year-on-year from 27.14% in February 2023 to 24.66% in February 2024.    

Katy Billany, executive director of TwentyEA, said: ”While the year-on-year rise in deals being struck is significant, it’s also extremely encouraging to see a large increase compared with 2019 - the last ‘normal’ year within the market before it was affected by the pandemic and Liz Truss’ Budget.    

“Although mortgage rates have reduced, they are still much higher than they were two years ago, therefore our latest stats show buyer demand remains upbeat and sellers are determined despite the rate rises, an impactful cost of living crisis and a possible change of Government.  

“These numbers are indicative of sellers who have become more realistic around pricing as well as a market which is seeming much more positive overall.”

It comes as research by Jackson-Stops found the average volume of UK properties listed for sale month-on-month rose by 58% in 2023 compared to 2022, according to new analysis by estate agency Jackson-Stops. 

The Isle of Wight (83%), Norfolk (78%) and Somerset (75%) saw the biggest increases in property listings on an annual basis,

Jackson-Stops’ own branch data shows Chelmsford saw a 79% increase in the number of listings, closely followed by Sevenoaks (70%) and Chester (54%).

Nick Leeming, chairman of Jackson-Stops, said, “We are at last observing a rebalancing of supply and demand in out of market hotspots, as the influx of available properties bridges the demand gap and underscores commitment from movers to make big life changes. 

“A boost in volume gives sellers the reassurance that there are good houses to move on to, one of the main barriers for house hunters in 2022 due to chronic lack of supply.

“With the probable reduction in interest rates as inflation cools, the current market not only favours sellers but also benefits potential buyers, particularly with fixed-rate products improving and a higher rate of mortgage approvals.”