More choice for buyers as 'solid rise' in sellers putting homes on the market

14 March 2024 , 09:43

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There has been an increase in sellers putting their homes on the market (Image: PA Archive/PA Images)

There was a "solid rise" in the number of houses being put up for sale in February.

This is the biggest increase since autumn 2020, say surveyors. The Royal Institution of Chartered Surveyors (RICS) reports that 21% more property professionals saw houses being listed for sale rather than coming off the market. That's the most since October 2020.

This is pretty different from the mostly gloomy picture painted throughout 2023, RICS noted. Estate agents had an average of 42 properties on their books. Thats the most RICS has seen since February 2021. Those surveyed also spoke of a jump in market appraisals compared to this time last year.

Across the country, new buyer inquiries grew for the second straight month, with 6% more professionals reporting an increase instead of a decrease. Most areas of the UK have seen more interest from buyers over the past two months, the report revealed.

But home sales stayed pretty much the same in February, with 3% more professionals witnessing a drop rather than a rise. The report concluded that these latest findings paint a slightly more positive picture for the sales market than we saw for most of last year.

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The report added: "Nevertheless, the near-term outlook is still somewhat cautious reflecting, in part, the suspicion that the recent easing in mortgage rates is likely to stall on the back of ongoing uncertainty about the timing and speed of interest rate reductions."

Looking forward, surveyors think the market will pick up even more as the year goes on. Simon Rubinsohn, the top economist at RICS, said: "The February RICS survey provides some grounds for encouragement around the sales market with not just buyer interest staying positive for the second successive month, but also the uplift in new instructions to agents."

"Whether the increase in stock coming back to the market will be sustained is likely to be a critical factor in explaining how things play out over the balance of the year, especially with new build likely to remain constrained. Significantly, the rise in the number of appraisals taking place points in the right direction."

The Government will be hoping that changes to CGT announced in the Budget will give things a lift. Meanwhile, there are signs that the relentless rise in private rents is slowing down but there are still more people looking for properties to rent than there are properties available which suggests tenants are unlikely to get any significant relief.

Tom Bill, head of UK residential research at estate agent Knight Frank, said: "The economic data has fluctuated since Christmas but the direction of travel for the housing market is up."

Sarah Coles, head of personal finance, Hargreaves Lansdown, said: "On the one hand, a well-stocked estate agent is one of the cornerstones of a healthy market. However, on the other, sellers could find it acts as a drag on prices."

"There's also less positive news from the mortgage market in recent weeks. Many of those agreeing sales at the moment will have agreed their mortgages back when rates were slightly lower. Since then, the market has reassessed the chances of an imminent rate cut, and put mortgage rates up."

The report also quoted the views of property professionals. One, based in Newcastle upon Tyne, said: "A continued lack of supply means demand for all property types is still strong. Vendors are more realistic with asking prices."

One expert from Newark in the East Midlands shared: "More positivity about in the residential sales market, with increased applicant activity and viewings slowly filtering through into increased sales activity."

A specialist in Anglesey, Wales, mentioned: "It's a market that rewards precision in pricing and patience from sellers." And an Edinburgh insider observed: "Market seems to be busy, considering it is only February. Hope to see this continue later into the year."