Strong demand for home purchases persists, yet a further decline in interest rates is needed
In Q3 2024, the housing market in England is experiencing a shift in homebuyer demand, with several key patterns emerging, according to GetAgent's Hotspots Demand Index.
The index reveals that many buyers are seeking properties in suburban locations and towns within commuting distance of major cities. This trend is driven by the desire for more space and better value compared to city centers.
Certain regional areas outside London and the South East are also experiencing elevated demand. Improved transport links and more affordable housing are attracting buyers looking for lifestyle changes and investment opportunities.
There remains strong buyer demand in more affordable markets, where first-time buyers and downsizers are active. This reflects ongoing affordability pressures in the housing market.
Another notable trend is the increased demand for new build homes and modern properties with energy-efficient features. Environmental concerns and lower running costs are influencing this shift.
Despite economic uncertainties, such as interest rates and inflation, homebuyer interest remains resilient in many localities, supported by a shortage of available homes.
October marks the start of the energy price cap increase, which could potentially impact the housing market. However, Colby Short, Co-founder and CEO of GetAgent.co.uk, expects demand to strengthen following the rate cut.
Notably, nationwide buyer demand is looking stronger than ever, with 2.6% more homes sold subject to contract across England. Bristol has the highest level of homebuyer demand, with 61.4% of all for sale properties sold subject to contract in Q3 2024.
Bedfordshire recorded the largest quarterly increase in sales demand, with an uptick of 1.8% compared to Q2 2024. Somerset and Oxfordshire also saw a rise of 1.1% in the number of homes sold subject to contract.
However, Colby Short expressed disappointment at the drop in demand following Q2's boost. He noted that while the impending tax hikes have not deterred London's property industry, interest rates have not decreased as quickly as many buyers may have hoped, causing buyer hesitation across the market.
The research on homebuyer demand was conducted by GetAgent's Hotspots Demand Index, which monitors homebuyer demand across England on a quarterly basis. The demand for homes stood at 43.9% in Q3 2024.
In conclusion, the Q3 2024 GetAgent's Hotspots Demand Index highlights a competitive market with focused demand in commuter belts, regional hubs, and affordable segments. This information can help sellers and developers strategize effectively in the current market conditions. For more specific data or rankings of particular towns or cities from the index, please let me know.
Investors seeking real-estate opportunities might find potential in suburban locations and towns with improved transport links, as demand for such properties is on the rise due to more affordable housing and the desire for more space. In the realm of housing finance, the resilience of buyer demand in many localities, despite economic uncertainties, indicates the importance of staying informed about market trends and adjusting investment strategies accordingly.
