Buyers and sellers appear determined to press ahead with their moves despite the looming general election, according to research from TwentyEA.
Not only has real estate market activity proven stable since the May 22 elections, but it has also remained higher than last year in terms of supply and demand.
TwentyEA examined the data for the 14 days after May 22 (May 23 to June 5) and found that the number of contracts sold (SSTCs) was 51,025, up 9% from 46,802 over the same period in 2023.
At the same time, the supply of new instructions amounted to 70,049 – an increase of 3.4% compared to the 67,753 last year. Both supply and demand metrics are more in line with the same fortnight in 2019 – the last normal market before the pandemic.
This is a continuation of activity since the beginning of the year, with the market performing well overall and closely comparable to 2019. The supply of new instructions for the first five months of 2024 was at a six-year high 763,651. This figure increased by 13% compared to the same period last year and by 5% in 2019. Demand (the number of SSTCs) increased by 17% to 529,172 between 2023, an increase of 5.5% compared to 2019.
The supply/demand ratio between January and May 2024 was 69.3%. This was slightly higher than last year’s 67.1%, but back in line with the more normal 2019 market when it was 69%.
In all regions of Great Britain, supply was higher than last year. The table below shows the five areas where these have increased the most.
TwentyEA managing director Katy Billany said: “With activity remaining stable despite the upcoming elections, the market is looking quite optimistic and comparable to 2019, the period prior to the pandemic.
“There is a healthy balance in the number of deals closed compared to the number of new instructions coming to market.
“From the start of the year to the end of May there was a 17.2% increase in the number of price changes compared to last year, but this was most likely a sign of sellers becoming more realistic that the frenzied markets of 2021 and 2022 were firmly behind us .
She added: “Foreclosures have increased by 11.5% since 2023 and we believe this is closely linked to affordability issues such as the rise in mortgage rates, which have left some buyers cold feet or circumstances have changed. As interest rates fall, stability will increase.”