New data from Rightmove reveals that the number of people sending a request to an estate agent to value their home was 23% higher in January 2024 than the previous record of January 2023. January’s figure was also 27% higher than the third highest month on record for valuation requests in July 2020, when the housing market had reopened during the pandemic.
One of the factors contributing to confidence among many sellers and buyers to get their 2024 moving is the more stable mortgage market, which has remained calm at the beginning of the year. Average mortgage rates have continued to slowly trend downwards, and the average five-year mortgage rate is now 4.64%, compared to the peak of 6.11% in July 2023. The number of future buyers sending enquiries to estate agents is 7% higher.
The Bank of England has also revealed that net mortgage approvals for house purchases rose from 49,300 in November to 50,500 in December. Net approvals for remortgaging increased from 25,700 in November to 30,800 in December. It was the third consecutive monthly increase and the highest level since June 2023. The Bank also held the base rate at 5.25% this month, a move that is set to further boost to buyer and seller confidence.
RICS UK Residential Market Survey reveals it members views showing new buyer enquiries rose by 7% in January from a fall of 3% in December as demand fuelled by cheaper mortgage rates continued to swell to levels not seen since February 2022.
The number of sales agreed also swung into the positive from -5% to +5% with member agents believing sales will pick up between now and May and almost half (44%) believing that sales volumes will increase over the next 12 months.
