The housing market in the UK is currently experiencing a significant boom, with an estimated £113 billion worth of homes in the sales pipeline. This marks the highest level of new sales agreed since autumn 2020, according to the property website Zoopla.
There are approximately 306,000 homes in the sales pipeline, which is 26 percent higher compared to a year ago. This increase in sales activity is driven by first-time buyers and existing homeowners who have been waiting for mortgage rates to fall before making their moving decisions.
The rental market has also seen rapid growth in prices, making buying a more attractive option for many first-time buyers. This shift in the “renting versus buying” dynamics has further boosted sales in the housing market.
Richard Donnell, executive director at Zoopla, expressed optimism about the sustained increase in sales activity throughout 2024. He mentioned that the market is on track for a modest two percent price increase in 2024, with 1.1 million sales expected to take place.
First-time buyers have been able to take advantage of lower mortgage rates, but a substantial deposit is still required to purchase a home. Donnell emphasized the importance of economic growth and job expansion in ensuring the affordability of housing for individuals.
Chris McLaughlin, director at Ocean Estate Agents, highlighted that many sellers who had previously transitioned to rental accommodations are now re-entering the market, often with no mortgages or significant deposits. On the other hand, buy-to-let activity has decreased as smaller landlords leave the market due to less favorable financial conditions and increased regulations.
Overall, the housing market in the UK is thriving, with strong sales activity expected to continue into December. The combination of low borrowing costs, rising incomes, and a high supply of homes for sale is driving this positive momentum in the market.
