15% jump in number of largest homes for sale
We’re always keeping an eye out for emerging trends and changes in activity in the housing market. Our real-time data lets us see behavioural shifts as they play out, and in the last week, we’ve seen a big spike in the number of larger homes for sale.
There’s been a 15% increase in the number of ‘top-of-the-ladder’ homes (that’s all properties with 5 bedrooms or more, as well as 4-bed detached houses) being added to Rightmove, when compared to the same period a year ago. We’re seeing the trend play out most prominently in some of the nation’s most popular coastal and countryside hotspots, with larger home sales jumping by 21% in the East of England, and by 20% in the South West.
Throughout this year, we’ve seen increased activity in the top of the ladder sector, with more choice available for movers than there was in 2023. But, since The Bank of England announced it would reduce the Base Rate to 5% on the 1 August, we’ve seen smaller and mass-market homes lead the way in terms of new properties coming to market. This trend has flipped back in the last week, with the most activity happening in the top of the ladder sector.
Our property expert, Tim Bannister, says: “Throughout this year we have typically been seeing more activity at the top-end compared with last year, when movers in this sector were hit with peak mortgage rates and lower availability of homes to choose from. Some of the lowest mortgage rates since before the mini-Budget are now available for those with a large deposit, and a mooted increase in capital gains tax is also likely to be contributing to decision making right now.”
| Region | Larger properties coming to the market w/c 9th September |
|---|---|
| East of England | +21% |
| South West | +20% |
| North West | +19% |
| West Midlands | +19% |
| North East | +16% |
| Great Britain | +15% |
| Wales | +14% |
| London | +14% |
| South East | +13% |
| East Midlands | +12% |
| Yorkshire and The Humber | +4% |
| Scotland | +3% |
Why is this happening?
A wider choice of homes for sale can often tempt other home-owners to put their properties up for sale, and this year, we’re seeing better availability of larger homes compared to this time last year.
We’ve seen mortgage rates trend downwards recently, particularly for those with larger deposits, and drops have gathered pace in the last few weeks. Our weekly mortgage rate tracker shows that average 5-year fixed mortgage rate for someone with a 40% deposit (60% Loan-to-Value) is now 3.97%, compared with 5.27% at this time last year.
There is also the rumoured change to Capital Gains Tax as part of the government’s Autumn Statement, which we’ve already seen have an impact on the rental market. Second home-owners, particularly those of larger properties, could be particularly impacted by any upcoming changes to legislation. The Autumn Statement will be announced on 30 October 2024.
What if I’m thinking of moving?
If you’re thinking of putting your home on the market soon and aren’t sure where to start, you can get a quick estimate of your home’s value using our instant valuation tool, or take a look at our 12-step guide to selling a home. Plus, our guide to buying takes you everything you might want to consider when you’re looking for your next home.
The header image for this article was provided courtesy of Tracy Phillips Estates, Standish
READ MORE: Check the current average UK mortgage rates
