Following a modest rise in home sales for the second consecutive month, the UK property market may be on the cusp of recovery, fueled by economic optimism and increasing buyer confidence.
In February, the UK witnessed a modest rise in home sales for the second consecutive month, as reported by HM Revenue and Customs (HMRC). While there was a 6% decrease in property transactions compared to February 2023, an estimated 82,940 homes were sold during the month. This represents a 1% increase in sales from January 2024, hinting at the beginnings of a potential recovery in the property market.
Industry insiders have shared a cautiously optimistic outlook, anticipating a further increase in sales during the spring and summer, which are traditionally peak seasons for the property market. Nathan Emerson, the CEO of Propertymark, suggested that the coming months could witness a boost in transactions, buoyed by potential economic factors such as decreasing inflation rates and possible interest rate cuts by the Bank of England.
Estate agents are observing a trend towards increased buyer confidence and affordability in the market. For instance, the Yorkshire Building Society has introduced a 95% mortgage product aimed at supporting first-time buyers. This move, among others, has been noted by Mark Harris of SPF Private Clients as indicative of a healthier competition among lenders, offering better pricing and product options for buyers.
Additionally, stabilising property prices and the prospect of improving mortgage affordability have been highlighted by experts as key factors contributing to the renewed confidence among potential buyers. Stuart Cheetham, CEO of MPowered Mortgages, underscored the significance of these developments in the overall market sentiment.
Despite the current comparisons to last year showing a decrease in transactions, there is an overarching sense of optimism regarding the property market’s direction. Industry professionals are particularly optimistic about the upcoming months, banking on improving economic indicators and increasing consumer confidence to drive a rebound in the housing market activity levels.
