Property Market Activity

Up in All Areas

All key market activity indicators are currently higher than they were in 2023, largely driven by economic growth and increased buyer confidence. Notably, housing demand has surged by 20% compared to last year. This significant growth comes from the summer of 2023 when rising mortgage rates caused a sharp drop in demand.

Sales agreed have also increased by nearly 25%, further strengthening the increasing flow in sales from earlier in 2024. Additionally, the number of new sellers entering the market is now an impressive 5% higher than this time last year.

The supply of homes for sale has continued to rise, reaching a 7-year high with an average of 33 properties per estate agent, giving buyers more choices. This increased supply is expected to keep price inflation stable throughout 2024, encouraging more market activity. Sellers in the current market should ensure their properties are competitively priced to achieve a timely sale.

Higher Prices for

Sustainable Properties

An analysis of energy efficiency in the UK property market is also conducted in Nationwide’s index. The recent index showed that there is a growing demand for energy-efficient homes, increasing what buyers will pay for a home that meets the criteria. Based on the report, homes with higher EPC ratings usually offer a price premium. 

Data indicates that properties with an EPC rating of A or B usually are bought for 2.8% more compared to similarly valued properties rated a D. Additionally, there is a significant disparity with the lowest-rated properties, with F or G-rated homes being valued 4.2% lower than similar D-rated properties.

The value of energy-efficiency properties is likely to continue to grow, especially since the government has introduced legislation to ensure rental properties achieve an EPC rating of C or above and tenants are now releasing the benefits of sustainable properties. 

Upgrading property to be more energy efficient now will help investors achieve many long-term goals, and also create security in the changing market. As sustainability is a rising deciding factor for many tenants, having a property to reach the requirements will ensure demand keeps rising and the property increases in value over time.