As we move past the holiday season, the UK property market is expected to regain momentum, according to recent analysis.
- Mortgage approvals historically peak in the first quarter of each year, signalling increased buyer activity.
- Data reveals that more than half of homes find buyers in the first quarter, with demand rising into the second quarter.
- Estate agents anticipate a busy first half of the year as buyer demand and mortgage approvals align.
- Interest rates are likely to drop further, paving the way for heightened market activity in 2025.
Traditionally, the UK housing market experiences notable activity in the early months of the year. The latest insights show that mortgage approvals tend to reach their zenith in the initial quarter, aligning with a surge in buyer interest post-Christmas. Over recent years, the data indicates an average of 67,564 mortgage approvals monthly in the first quarter, underscoring the activity levels following the festive period.
The analytical data from GetAgent.co.uk highlights a typical trend; buyer demand hits a notable high as the year begins, with 55.4% of properties securing buyers during this period, an increase from the preceding quarter’s 52.2%. The demand doesn’t stagnate but further intensifies during the second quarter, peaking at an average of 58.2% – the pinnacle of the year’s quarterly demand.
This pattern of increasing demand and mortgage approvals creates a conducive environment for estate agents, who can expect a vibrant market through the first half of the year. The conversion of mortgage approvals into property offers during this time illustrates a dynamic housing market.
In a statement, Colby Short, co-founder and CEO of GetAgent.co.uk, commented on this predictable seasonal pattern of the market. He noted that the uptick in activity observed post-Christmas typically results in more offers by the mid-point of the year. This outlook supports estate agents in planning strategically, mitigating the quieter periods usually observed in the year’s final months.
The predicted decline in interest rates before the end of 2024 further fuels optimism for market activity. Such economic shifts are set to invigorate the property sector as 2025 approaches, offering hope after challenging times experienced in previous years.
With interest rates set to drop and buyer demand on the rise, the UK housing market is poised for a renewed surge in 2025.
