October 2024 marks a new high point in the UK housing market, with property sales activity reaching levels not seen since the peak of the pandemic in 2020. Recent data highlights a significant increase in buyer demand, alongside a robust supply of homes entering the market, driven by stabilized mortgage rates and improved affordability. As property transactions continue to rise, industry players like Build Warranty are stepping up to support the growing demand for new homes and the home warranties that will be required for new builds.
Buyer Demand on the Rise
According to Zoopla’s latest House Price Index, buyer demand has surged by 22% year-on-year, largely due to recent reductions in mortgage rates, which are now more stable than in the previous two years of volatility. Although rates remain above pre-pandemic levels, they have moderated enough to encourage new buyers, with first-time purchasers now making up 36% of total sales in 2024. Rising incomes have also helped, allowing potential buyers to re-enter the market with renewed confidence.
Modest Price Growth and Regional Variance
Even with demand climbing, house price growth remains relatively subdued, largely due to an increase in housing supply that has helped moderate price inflation. Nationally, house prices have increased by about 1% year-on-year, with an average UK home now valued at approximately £267,500. Regional data shows more pronounced growth in areas like Northern Ireland, the North East, and Scotland, while prices have declined slightly in the South East and East of England, highlighting significant regional differences driven by local affordability and employment factors.
Record Value of Transactions
Zoopla estimates the total value of homes currently being processed at around £130 billion, representing the highest level in four years. This includes a variety of transactions, from first-time buyers to existing homeowners moving up the property ladder. Additionally, a noticeable increase in landlord sales, especially in London, is providing first-time buyers with more options, as homes previously rented tend to be priced below the market average, creating an entry point for those struggling with affordability.
Build Warranty Poised to Scale in Response to Demand for New Homes
As sales continue to soar, Build Warranty, a leading provider of new-build home warranties, is positioning itself to scale up in response to the surge in demand. With the government’s push to increase housing supply and the market’s shift towards new homes, Build Warranty’s role is critical to ensuring quality and reliability in the home-building sector. Their home warranties provide essential protection for new homeowners against construction defects and structural issues, enhancing buyer confidence and supporting long-term market stability.
Future Outlook and Economic Factors
Looking ahead, the Bank of England’s next decision on interest rates could significantly impact the market. Industry experts are optimistic that a potential rate cut may further ease the path to homeownership. Richard Donnell, Zoopla’s Executive Director, has pointed out that the recent growth in sales reflects market resilience and growing economic stability.
In addition to supporting individual homebuyers, industry insiders are urging policymakers to focus on sustained economic growth and policies that bolster housing supply, essential for meeting the nation’s demand for affordable homes.
With the property market’s current momentum, the UK housing sector shows strong potential for continued growth, supported by players like Build Warranty, who are dedicated to meeting the warranty and protection needs of a rapidly expanding pool of new homebuyers.
