Despite the doom mongers, the UK property market for the week ending Sunday, 25th February 2024 (Week 8) is doing rather well regarding transaction levels and prices achieved.
In this week’s UK property market weekly report with Chris ‘Property Stato’ Watkin and special guest, Ben Madden, the headlines are as follows:
+ House Prices on Sale Agreed homes in February £340/sq.ft (Jan ’24 – £331sq.ft)
+ Listings for last week (Week 8) are 10% higher than Wk 8 average (2017 to 2024).
+ Gross sales YTD are 10.7% than 2023.
+ Net sales last week – 13.7% higher than the 2023 Week 8 2023 level
+ Sale fall-throughs at 1 in 5 sales.
+ Chris’s In-Depth Analysis (Week 8) :
New properties to market: The UK saw 36,133 new listings (9.8% higher than the 8-year average for Week 8 is 32,002). This year’s YTD listings stand at 257,152, more than the historical 8 year YTD average of 237,035.
Average Listing Price: £442,980.
Listing vs Sale Agreed Prices: The difference stands at 26%. The long-term average is between 16 and 17%, so something is higher as this is slightly concerning GRAPH 11
Price Reductions: Last week, 19,240 properties saw price reductions, a significant number compared to the 8-year average of 13,528. This means 1 in 8 properties each month. That is not enough.
Average Asking Price for Reduced Properties: At £390,507, this shows me the lower to mid price properties are being reduced.
Gross Sales: Impressively, 25,437 properties were sold stc last week. Its was 22,654 for the same week in 2023. Average for 17/18/19 is 23,221 for Week 8.
Accumulative Gross Sales YTD: The total stands at 174,450, exceeding the average of 162,112 from 17/18/19 and 157,540 in the same week in 2023.
Average Asking Price of Sold STC Properties: Holding steady at £350,459, continuing to mirror the latter half of 2023.
Sale Fall Throughs: Back to normal medium levels this week at 5,179, still below than the 2023 average of 5,382 weekly fall-throughs and 7,590 weekly fall thrus in there 8 weeks after the Truss Budget GRAPH 14
Sale Fall Through Rate: Back to medium term levels of 20.36% GRAPH 15
Net Sales at 20,258 for the week, 13.7% higher than 2023 levels for Week 8 in 2023 and above the 17/18/19 average of 19,008 for Week 8.
Accumulative Net Sales YTD: The total stands at 135,867, 104.7% of the 17/18/19 average. The YTD figure for 2023 for Net Sales 117,598.
House Prices on Sale Agreed homes in February stand at £340/sq.ft (based on 99,454 UK properties sold stc / sale agreed). For comparison, it was £327/sq.ft in Q4 2023 and £329/sq.ft in whole of 2023. GRAPH 23
Number of Properties for Sale in Jan 24 compared to Jan 23 by region.
South West (26.4%)
East Midlands (23.8%)
Yorkshire and The Humber (24.1%)
South East (16.9%)
Wales (20.3%)
West Midlands (19.8%)
East of England (19.4%)
North East (19.4%)
North West (15.9%)
Scotland (8.4%)
Outer London (6.4%)
Inner London (4.49%)
Northern Ireland saw a decline (-7.65%)
UK Rental Growth between Jan ’20 to Jan ’24.
South West (45.2%)
East Midlands (39.5%)
Yorkshire and The Humber (38.5%)
North East (37.3%)
Scotland (35.0%)
Northern Ireland (34.6%)
Outer London (30.6%)
East Anglia (28.9%)
North West (28.4%)
West Midlands (29.2%)
South East (25.5%)
Inner London (23.4%)
Wales (22.1%)
NB – because of the Exodus in 2020 from London, because of the pandemic and the vast increase in elf rental stock in the capital, if we have done the same exercise from December 2020 to January 24, the growth in in London would be 59.7%
UK regions’ fall in available properties to rent between 2017 and 2023, biggest drop first:
North East (52.5%)
Wales (39.1%)
Northern Ireland (33.6%)
Outer London (29.7%)
South East (29.5%)
South West (27.2%)
East of England (25.8%)
Inner London (25.7%)
North West (25.2%)
Yorkshire and The Humber (25.1%)
Scotland (13.2%)
East Midlands saw a negligible increase (0.1%).
Watkin’s Thoughts ..
Let us all not forget that UK estate agents only got paid on 50% of their listings in 2023 (52.8% to be exact)
Estate agents need to grapple with the stark reality that only got paid on just over half of the properties that left their books of agents in 2023, (the other 47.2% were withdrawn)
Many of the reasons on why this is so low stem from within our own industry. From the competitive frenzy of winning instructions to the pitfalls of offering misguided over valuations to secure a listings bonus or get one over the competition, to ineffective dull marketing strategies,
Estate agents need to elevate their practices, adopt innovative marketing tactics, and provide unparalleled advice that truly resonates with sellers’ needs.
These stats show we need to be realistic with ours and our clients expectations and craft compelling marketing campaigns which can significantly increase your chances of success, ensuring you’re not just participating in the property market but leading it.
