The UK property market is showing signs of a remarkable recovery, according to new data from Rightmove. In fact, the number of home sales being agreed has now returned to pre-pandemic levels, marking a significant milestone for the industry.
Rightmove’s figures revealed that sales agreed between buyers and sellers are now just 1% behind March 2019 levels. This recovery is being driven by flats, which have seen agreed sales climb to 10% above 2019 levels, after being 11% down earlier this year. In London, the recovery of flats is even more pronounced, with agreed sales now up by 23% compared to March 2019.
The total number of sales agreed has also bounced back, recovering from being 21% behind 2019 levels in January, according to the research. Overall, sales agreed have recovered the most in London, now standing 11% higher than in March 2019. However, sales agreed in the East Midlands are still lagging behind, with figures still 11% below 2019 levels.
While agreed sales are still 18% below last year’s levels across Great Britain, the fact that they have caught up with those seen during the “more normal” market conditions of 2019 is a significant achievement, particularly given the economic headwinds that have affected the industry over the last six months.
In addition, the average size of price reduction from first to last listing price is also back to its pre-pandemic level of 6%, which is equivalent to £22,000 based on the current national average asking price. This figure had dropped to 5% during the pandemic. While a third of properties have seen a price reduction, this is in line with the pre-pandemic level of 34%.
Rightmove’s property expert, Tim Bannister, said: “The market is remaining surprisingly robust given the economic headwinds that have affected movers over the last six months. While the market is by no means at the exceptional level it has been over the last couple of years, it is a positive sign for agents that sales at a national level are being agreed at the same rate as the last more normal market of 2019, though there are regional differences across Great Britain.”
However, Bannister stressed that while the market is recovering, pricing right the first time can often lead to a quicker sale, and it’s important for sellers to speak to an agent about their local market so they can price their property realistically and give themselves the best chance of finding a buyer.
Overall, the recovery of the UK property market is great news for buyers and sellers alike, with the industry showing strong signs of resilience and a determination to bounce back after a difficult period.
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