Gross mortgage advances saw a notable rise during Q3 2024, reflecting renewed activity in the housing sector, Propertymark’s latest Housing Insight Report has revealed.
The report, covering November 2024, revealed that sales volumes in October 2024 were 23% higher compared to the same period in 2023, indicating a strong year-on-year performance.
Similarly, November 2024 witnessed the highest sales agreement figures for the month in three years, demonstrating continued buyer interest despite economic uncertainties.
The average number of homes listed for sale per member branch stood at 11.3, with stock levels reaching a two-year high of 44 properties per branch.
Prospective buyer registrations remained robust, averaging 108 per branch, although the figure saw a slight dip to 92 in November compared to 93 in October.
Market appraisals also maintained momentum, averaging 20 per branch in November, suggesting sustained seller confidence.
Despite this, only 11% of properties achieved their asking price during the month.
The rental market was more complex. Average rents increased by 9.1% year-on-year in November 2024, reaching £1,362 in England, £990 in Scotland, and £772 in Wales.
Compared to October 2024, rents rose by 1%.
This occurred alongside a static void period and an uptick in rental arrears, underlining affordability pressures for tenants.
Despite a slight reduction in new rental property instructions, the average number of properties available for rent per branch hit a two-year high of 13.
However, the lettings market remained under strain due to an enduring shortage of rental stock and increasing demand, with only nine new tenancies agreed per branch in November.
Nathan Emerson, CEO of Propertymark, said: “The next few months are likely to prove busy for the sales market, with stock coming to the market and consumers showing they are keen to stay ahead of Stamp Duty threshold changes due in England and Northern Ireland in April 2025.
“Across the last 12 months, we have witnessed the economy stabilise and a much greater degree of confidence and affordably return.
“There are still challenges ahead and much will depend on inflation remaining within targeted boundaries and the Bank of England having the confidence to potentially lower the base rate further when conditions permit.
“The entire housing sector is about to embark on some of the biggest changes seen in over thirty years with new planning reform for England and Wales working its way through Parliament, which will pave the way for the UK Government to start delivering their ambition of over 1.5 million new homes before 2029.”
He added: “Similarly significant legislation that will impact the lettings market across England is also moving at pace through Westminster in the form of the Righters’ Rights Bill.
“This will fundamentally change key rights for both renters and landlords and it remains imperative that this new Bill strikes a workable and fair balance for all involved.”
“The lettings market remains extremely challenging, with long-running issues regarding an intense lack of rental stock across the UK.
“Throughout the last 20 years, we have seen renting more than double in popularity and there needs sensible support that encourages long-term investment within the sector.”
