UK Housing Market Transactions Up 30%
The number of homes across the UK for sale has hit a 7-year high, with almost 500,000 properties listed for sale in the second quarter of this year, according to figures from TwentyEA. This is a 4% rise on last year, marking the highest level since 2018.
With the number of homes with sales agreed also growing by 7% in the past year, overall, residential transactions have surged to a whopping 30% higher than Q2 of 2024.
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The UK housing market is strong and is holding sustained momentum at the moment, with the potential to see further increases in activity with the expectation of interest rate falls being announced in the coming months.
Manchester: The Most Buoyant Market
The North West of England has recorded the largest growth in sales agreed, according to TwentyEA's report, showing a rise of 10% annually. On a city level, Manchester was the top-performing location with a 15% surge in sales in the most recent results, compared to 11% in Cardiff, 11% in Edinburgh, and 10% in Birmingham.
London reported a slowdown of -3.6%, showing the struggle that the capital is facing. According to the report, these are some of the main factors affecting the city -
'This decline is due to a combination of economic, policy and market-specific factors. Increasingly, the capital is becoming “decoupled” from the rest of the UK housing market.'‘‘’’
UK Housing Market Spurred On By Mortgage Rate Reductions
The UK housing sector had to adapt to the higher mortgage rates that have become the norm in the past few years, resulting in a boost in more affordable areas. While it has taken time, the rates are slowly improving, with the base rate now sat at 4.25% - down a full percent from the highest rate of 5.25%.
Lenders have been dropping rates to entice borrowers, but they have also relaxed borrowing criteria, offering more opportunities for buyers who previously would not have been accepted. This has created more momentum in the UK housing market, with the expectation that this will be further reinforced by a steady mortgage reduction rate.
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