Homebuyer demand stays robust, yet a persistent decline in interest rates is crucial
The latest research by GetAgent.co.uk has shed light on the current trends in homebuyer demand across England, painting a varied picture depending on region and property type.
According to the findings, major cities like London, Manchester, and Birmingham continue to experience strong buyer interest, particularly for well-priced homes in commuter-friendly locations. This trend is echoed in suburban areas and commuter towns outside of major city centers, where there is a notable increase in demand driven by buyers seeking more space and affordability while maintaining access to urban jobs.
Regions offering more affordable housing, such as parts of the North East and the Midlands, are seeing heightened buyer activity as affordability pressures mount in the South. The demand is increasingly focused on family-sized homes with gardens, reflecting preferences shaped by remote or hybrid working patterns.
Interestingly, buyer activity remains sensitive to mortgage rate changes. While a rate cut in August is expected to lead to a strengthening of demand, particularly as we head into Q4, some overheated markets have seen a slight cooling due to the interest rates not falling as quickly as many buyers may have hoped, causing a sense of buyer hesitation across the market.
Bedfordshire recorded the largest quarterly increase in sales demand, with an uptick of 1.8% compared to Q2 2024. Durham and Tyne & Wear also saw an increase of 1.2% in the number of homes sold subject to contract. Somerset and Oxfordshire also experienced a rise of 1.1%.
Nationwide buyer demand is looking stronger than ever, with the number of homes sold subject to contract across England increasing by 2.6%. This is despite the impending tax hikes and the start of the energy price cap increase in October, which some may have anticipated would scare the property industry.
Colby Short, Co-founder and CEO of GetAgent.co.uk, commented on the findings, expressing disappointment at the drop in homebuyer demand in Q3 2024. However, he expects demand to now begin to strengthen. He noted that the research suggests that buyer appetite is better today than it was last year, indicating the market is headed in the right direction.
The GetAgent's Hotspots Demand Index monitors homebuyer demand across England on a quarterly basis, providing valuable insights into the housing market trends. For the most precise and detailed breakdowns by locality and property type, consulting the full GetAgent Hotspots Demand Index report for Q3 2024 would provide the most comprehensive insight.
- The current trends in homebuyer demand across England indicate an increased interest in investing in well-priced homes in commuter-friendly locations within major cities like London, Manchester, and Birmingham, as well as in suburban areas and commuter towns, due to the demand for more space and affordability.
- Buyer demand in regions offering more affordable housing, such as parts of the North East and the Midlands, is rising as affordability pressures mount in the South, with a focus on family-sized homes with gardens due to the influence of remote or hybrid working patterns.
- Personal finance considerations, such as mortgage rates, continue to play a significant role in the housing market. A rate cut in August is expected to lead to a strengthening of demand, particularly as we head into Q4, but some overheated markets have seen a slight cooling due to the interest rates not falling as quickly as buyers had hoped, causing a sense of buyer hesitation in the real-estate market.
