Flats help to drive sales agreed back to pre-pandemic levels

• The number of sales being agreed is back to its pre-pandemic level for the first time since September, now standing at just 1% behind March 2019:
  • The recovery is being driven by sales of flats which are now 10% higher than March 2019, improving from being 11% down at the start of the year, and is most pronounced in London
  • The total number of agreed sales has improved from being 21% behind 2019 at the start of the year
• Overall sales agreed have recovered most in London, with agreed sales now 11% higher than March 2019, while sales are taking longest to catch up in the East Midlands which is still 11% below 2019
• Across Great Britain agreed sales are still 18% below the exceptionally busy market of this time last year
• Average mortgage rates have been edging down, with a 5-year fixed, 15% deposit mortgage now 4.63%, a drop from 5.89% in October
• The average size of price reduction is also back to its pre-pandemic level of 6%, the equivalent of £22,000 based on the current national average asking price of £365,357

New data from the UK’s biggest property website Rightmove reveals that the number of home sales being agreed is now back to its pre-pandemic level for the first time since September, before the mini-budget.

Sales agreed between sellers and buyers are now just 1% behind March 2019’s levels. The recovery is being driven by sales of flats with agreed sales now 10% above 2019 after being 11% down at the start of the year.

This is most pronounced in London, where agreed sales of flats are now 23% higher than March 2019.

The total number of sales agreed have recovered from being 21% behind 2019’s levels in January.

Overall sales agreed have recovered the most in London and are now 11% higher than March 2019, while sales agreed in the East Midlands are taking longest to catch up and are still 11% below 2019.

Across Great Britain, agreed sales are still 18% below the exceptionally busy market of this time last year.

Average mortgage rates have been edging down this year. The average mortgage rate for a 5-year fixed, 15% deposit mortgage was 4.63% in March, down from 5.89% in October.

Meanwhile the average size of price reduction from first to last listing price is also back to its pre-pandemic level of 6%, which is the equivalent of £22,000 based on the current national average asking price. It had dropped to 5% during the pandemic.

A third of properties see a price reduction, which is up from last year’s 19% during the frenetic market, but 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. The level and size of reductions has also returned to its pre-pandemic norm, though pricing right the first time can often lead to a quicker sale, so it’s important for sellers to speak to an agent about their local market so that they price realistically and give themselves the best chance of finding a buyer.”

Robert Sturges, Central London Area Director at Chestertons, says: “Our offices carry a high proportion of flats and we have noticed a significant upswing in buyer demand for apartments of all sizes. This demand for flats is driven by professionals who wish to shorten their commute, parents who invest for their children but also overseas buyers who are taking advantage of favourable currency exchange rates.

“In the face of rising living costs, some buyers may also decide that a flat is financially more viable than a house at this moment in time. Another driving force behind the demand for flats are renters who review their finances amid rising rents and decide that, despite higher mortgage rates, buying presents a better option long-term. We are therefore seeing a number of first-time buyers entering the market.”

ENDS