UK Property Market Update: A Festive Slowdown?
As we head into the festive season, the UK property market is showing some signs of slowing down, although it remains strong compared to previous years. Let’s take a closer look at the key trends from the latest data
Listings
New listings saw an expected dip this week, down 4,000 to 17,000. However, it’s worth noting that year-to-date figures are still significantly higher than both 2023 and the 2017-2019 average, up 8.5% and 7.4% respectively. This suggests a healthy level of activity despite the seasonal slowdown.
Price Reductions
The percentage of residential sales stock being reduced continued its downward trend in November, falling to 11.1% from 13% in October and 14% in September. While this might seem positive at first glance, it’s important to consider the context of falling stock levels in the lead up to Christmas. This could indicate a slight hesitancy among sellers to adjust their pricing expectations in a less active market.
Sales Activity
Gross sales remain robust, with 19,100 homes sold subject to contract (STC) this week. This represents a 21% increase compared to the same week last year and a 9.1% rise compared to the 2017-2019 average. Year-to-date sales are also up an impressive 15.4% on 2023.
Sales Through Rate & Fall-Throughs
The monthly sales through rate dipped slightly to 14.9% in November. While lower than the 2024 average and the long-term average, it’s crucial to remember the exceptionally high rates seen during the pandemic boom. Meanwhile, sale fall-throughs remained relatively stable at 25.1%, in line with the long-term average.
Net Sales & Market Dynamics
Net sales came in at 14,300 this week, still significantly higher than the same period in 2023 and 2022. Interestingly, only 53.7% of homes leaving estate agents’ books since January 1st have actually exchanged and completed. This highlights the ongoing challenges in the market, with a significant proportion of properties failing to reach a successful sale.
House Prices
Early indications suggest that house prices continued their upward trajectory in November. The £/sqft figure, a reliable predictor of Land Registry data, reached £344, marking a 4% increase since January.
Stock Levels
Residential sales stock on the market stood at 677,000 at the end of November. This is slightly higher than the same period last year but considerably lower than the levels seen during the pandemic.
Sales Pipeline
The residential sales pipeline remains strong, with 487,000 homes sold STC at the end of November. This indicates continued demand in the market, although it’s essential to monitor how this translates into completed sales in the coming months.
Overall
The UK property market is navigating a period of adjustment as we approach the end of the year. While activity remains strong compared to historical trends, there are signs of a seasonal slowdown and some hesitancy among buyers and sellers. As we head into 2025, it will be crucial to keep a close eye on these trends and adapt marketing strategies accordingly.
Frank Marketing is here to help you stay ahead of the curve. Contact us today to discuss how we can support your property business in the new year.
