Surge in Property Prices Driven by Increased Buyer Interest

The UK property market witnessed a significant surge in the average listing price, climbing by 1.5% to reach £368,118, marking a robust recovery from the subdued conditions of 2023, as revealed by data from Rightmove. This surge in prices is attributed to a notable increase in buyer interest, with estate agent inquiries and strong sales figures surpassing those of the previous year. Rightmove noted that the 1.5% rise exceeds the historical March average of 1.0%, signaling growing confidence among sellers.

Tim Bannister, Rightmove’s director of property science, highlighted the buoyancy in the market, stating that both buyer and seller activity levels typically rise during March, marking the beginning of the spring selling season. He noted that the stronger-than-usual price growth indicates newfound confidence among sellers, albeit some may be overly optimistic about achieving higher prices in their local markets. Despite this, Bannister suggested that this uptrend could present a window of opportunity for prospective buyers, indicating a positive shift in market dynamics.

The increase in buyer activity suggests a return to pre-pandemic norms rather than a sudden market surge, with buyers less affected by high mortgage rates leading the charge. Agreed sales are up by 13% compared to the same period last year, poised to surpass the one million mark set in 2023. Prime property segments are also performing well, with agreed sales showing an 18% increase from last year. London, in particular, has experienced a surge in buyer demand, attributed to the return of workers to offices, wage growth, and easing inflation.

Despite the positive momentum in the market, caution is advised due to the lingering challenges of stretched buyer affordability and higher mortgage rates. Sellers are encouraged to remain pragmatic and open to negotiation in navigating the spring market. Observers like Jeremy Leaf, a north London estate agent, note that while the market trends are promising, realistically priced properties are attracting the most attention, highlighting the importance of pricing strategy in capitalizing on increased demand.

Source: Property 118