The property market is anticipated to gather momentum after the festive season, with early 2025 poised for heightened activity.
- An analysis by GetAgent.co.uk indicates robust mortgage approvals and buyer demand in the initial months of the year.
- Bank of England’s data shows the first quarter leading in mortgage approvals over the past four years.
- GetAgent’s insights reveal a pattern of increased buyer activity in Q1 and Q2, supporting the approval data.
- The consistent yearly trend provides estate agents with predictability, facilitating better planning amid evolving interest rates.
The property market is anticipated to gather momentum after the festive season, with early 2025 poised for heightened activity. An analysis by GetAgent.co.uk, which examined historical mortgage approval and buyer demand data, suggests that the market is most lively in the early months of the year. This pattern is seen in both the securing of mortgages and offers being made.
According to data from the Bank of England, the first quarter has consistently seen the highest number of mortgage approvals from January 2021 to September 2024. On average, during the first three months of the year, there were 67,564 approvals per month over these years. The second quarter also showed strong activity, with monthly approvals averaging 66,503, whereas figures for the third quarter decreased to 61,398, and reached a low of 56,342 in the fourth quarter.
Further buyer demand analysis by GetAgent reveals that the demand for homes tends to rise at the start of the year. In the past four years, 55.4% of homes on the market found buyers in Q1, compared to 52.2% in Q4. Demand increases further to 58.2% on average in Q2, which marks the peak of buyer interest annually. This rise pairs with the earlier noted mortgage approval rate, demonstrating a conversion into offers by the second quarter.
Colby Short, CEO of GetAgent.co.uk, states, “The housing market usually follows a predictable seasonal pattern. Buyer demand metrics in recent years indicate a spike in mortgage approvals post-Christmas, with this surge translating into increased offers during the second quarter.” This consistent behaviour implies that estate agents can anticipate a busy first half of the year, allowing for strategic planning. Moreover, with interest rates expected to decline by the end of 2024, there might be a significant uptake in market activities in 2025, providing a sense of optimism after challenging years.
The predictable trends in the housing market offer a stable framework for planning future activities.
