The property market appears to be swinging away from being a seller’s market toward being a buyer’s market, buoyed by rising stock levels and greater choice for home movers; a trend reflected in the latest UK house Price Index for November 2924.

Growth in the number of properties for sale begun to drive average prices down with November 2024 (£289,707) 0.4 percent lower than October 2024 (£290,959).

The trend is reflected in the last three months from September 2024 (£291,263), although the annual change from November 2023 to November 2024 is 3.3 percent up. 

On the same day, the latest inflation figures were published which showed the rate of inflation had slowed slightly in December, down from 2.6 percent in November to 2.5 percent in December. 

With the Bank of England’s stated objective of 2 percent inflation any movement on a base rate reduction in the early part of 2025 may now be put back.

But with many commentators and organisations presenting a positive picture at the start of the year, there is confidence in the property sector. 

Commenting on the latest ONS figures Nathan Emerson, CEO at Propertymark said “With many political and economic challenges currently dominating the news, the housing market has proven again that it can deliver growth despite the challenges faced. With keenness from many across England and Northern Ireland to complete before Stamp Duty increases take effect in April, it is imperative there is a strong sense of confidence for people to approach the market”.

“Across the last quarter, our members have witnessed a positive uplift in the number of prospective buyers registering and an increase that represents a three-year high for the housing market. In addition, we have clarity that the Planning and Infrastructure Bill will be introduced to Parliament in March, which will empower the UK Government to make a start on their promise to deliver 1.5 million new homes before 2029. It does, however, remain imperative that there is clarity on where new homes will be built, together with how supporting infrastructure will be delivered,” added Emerson.

The latest Residential Property Survey covering December 2024 from the Royal Institution of Chartered Surveyors (RICS) is similarly positive with sentiment amongst professionals showing a continued positive trend around new buyer enquiries, new properties coming to market, and sales.

House sales continue to see an upward trend with +5 percent (net balance) of respondents reporting an increase in new buyer enquiries. While this is down from the +11 percent readings posted in November and October, sales volumes have picked up with a net balance of +7 percent of respondents indicating sale growth, compared to a figure of +1 percent in November. 

New instructions, which measures properties placed for sale, saw a bounce, potentially due to stamp duty changes in March, with a net balance of +14 percent reported. This is the sixth consecutive month where respondents have indicated an increase in houses being listed for sale.

The report goes on to outline how sentiment around near-term sales expectations are ‘mildly positive, albeit the latest net balance of +16 percent has been scaled back from readings of +19 percent and +29 percent submitted over the two months prior.’ 

But the overall outlook for the next 12 months remains steady with a net balance of +37 percent of contributors saying they see sales rising, a figure which has remained unchanged over the past three months.

RICS Chief Economist, Simon Rubinsohn, said:  “The latest results from the RICS Residential Market Survey points to a further improvement in sentiment in the housing market despite concerns about the potential impact of rising bond yields on borrowing costs. Buyer enquiries rose once again, albeit at a slower pace than in November, and the headline price indicator also moved higher.

He added;“More significantly, the signals from the survey around expectations over the next twelve months also remain solidly positive for now. However, the resilience of the uplift in market mood could be tested if the mortgage rates do begin to climb in a material way over the coming months. That, critically, would also be a concern for developers who will want to see a solid market as a backdrop for ramping up house building to help meet the government’s ambitious 1.5 million homes target for this parliament.”