The UK property market continues to show resilience and some upward momentum as the latest figures from Dataloft indicate a 1.5% increase in the average property price for March 2024. This month’s growth, bringing the average property value to £368,118, outpaces the historic March average of a 1% rise, demonstrating a healthy demand in the housing sector.
A Robust Uptick in Prices
March’s figures represent a notable £5,279 increase on average, marking the largest monthly price rise in nearly a year. This is the third consecutive month where property prices have seen an increase, fuelled predominantly by heightened demand among buyers. The sustained growth trajectory, while impressive, still leaves the average property price £4,776 shy of the May 2023 peak, suggesting that despite recent rises, there remains a potential window of opportunity for buyers.
Buyer Demand vs. Supply
The current market dynamics are characterised by a significant mismatch between supply and demand. According to a Dataloft poll, nearly two-thirds (64%) of estate agents report that there are three or more prospective buyers for every available property. This competition is a key factor driving up asking prices as buyers vie for a limited number of available homes.
The Importance of Realistic Pricing
Despite the uptick in prices, the market remains sensitive to overvaluation. Realistic pricing continues to be paramount in achieving sales. Properties priced accurately and in line with market expectations are likely to attract more interest and convert more readily into sales, even in a competitive market. Estate agents and sellers must carefully evaluate their pricing strategies to ensure they are aligned with current market conditions to maximise their chances of success.
Regional Trends
While the national average provides a broad picture, regional variations can be significant. Certain areas may be experiencing higher than average price increases due to local demand spikes, new infrastructure developments or other regional economic factors. Conversely, some regions might be lagging, offering even greater opportunities for buyers. Prospective buyers and investors should consider these regional market conditions when making purchasing decisions.
Future Market Outlook
Looking ahead, the property market’s trajectory will likely be influenced by several factors including economic conditions, interest rates and ongoing housing policy changes. The current trend of rising prices may encourage more homeowners to consider selling, potentially increasing the supply of available properties and stabilising prices. However, as long as demand remains strong, the market is likely to continue its upward trend.
A Good Time to Act
With prices still below last year’s peak, now might be an opportune moment for both buyers and sellers to make their move. Buyers have a window to secure properties before prices potentially climb further, while sellers can benefit from the strong demand driving up asking prices.
Whether you are looking to buy your first home, invest in property, or sell your current home, Belvoir is here to guide you through every step of the process. Contact us today to discuss how we can help you navigate this dynamic market to achieve your property goals.
