The number of agreed UK property sales until Saturday, 22nd November 2024, is 18% higher than a year ago.
Breaking those stats down even further, as of 22nd November 2024, 1,009,340 UK homes had been sold subject to contract (STC), an 18% increase from the 855,083 homes sold STC in the same period of 2023. The average UK selling price has risen significantly, reaching £362,017 in 2024, compared to £326,125 in 2023 (a rise of 11%).
That doesn’t mean UK house prices have risen 11%; more higher-valued properties have sold in 2024 than in 2023. The £ per square foot is a better judge of house price changes. The pound per square foot has risen only by 2.7% over the last year, climbing from £331 to £340 (which is in line with the major house price indicators).
Every UK region saw an increase in the number of properties selling (STC) in 2024 compared to 2023 in that January to November window:
- East Anglia: Up 22.2% (highest growth in the UK)
- East Midlands: Up 21.5%
- South East: Up 19.6%
- North West: Up 18.5%
- London: Up 18.3%
- West Midlands: Up 18.2%
- Yorkshire & Humber: Up 17.6%
- North East: Up 15.7%
- South West: Up 15.6%
- Wales: Up 14.6%
- Scotland: Up 12.9%
- Northern Ireland: Up 12%
Whilst we have had increased properties sold STC, the supply of UK properties on the market is very similar to last year, (643,327 for sale in November 2024 versus 630,307 for sale in November 2023).
Buyers Have the Advantage, but Challenges Remain
The current market presents opportunities for Portsmouth home buyers but also lingering challenges. While mortgage rates are improving, they are still higher than many prefer. However, affordability is reasonable, with some banks and building societies offering rates below 4% for those with larger deposits.
Buyers today have more choice than a few years ago, and in some parts of Portsmouth, properties are spending longer on the market. This allows for more time to consider options and even negotiate favourable terms. That said, competition still exists for highly desirable Portsmouth homes, and properties in prime locations or with unique features may still attract multiple offers.
Securing a mortgage agreement, in principle, is vital to give any Portsmouth buyers an edge in these competitive scenarios. Having that mortgage agreement in place not only streamlines the property buying process, but also makes a strong impression on sellers, particularly in situations where speed is of the essence.
Portsmouth Sellers Must Focus on Pricing and Presentation
On the other hand, sellers face a market where realism is key.
As of 22nd November 2024, 3,026 Portsmouth homes had been sold STC, an 18.1% increase from the 2,563 homes sold STC in the same period of 2023. The average Portsmouth selling price has dropped slightly, to £279,915 in 2024, compared to £280,922 in 2023 (a fall of 0.4%).
The £ per square foot on the homes sold STC for Portsmouth has been £303 per square foot in 2024, compared to £301 per square foot in 2023.
In 2023, 51.15% of Portsmouth homes that came to market were successfully sold (completed and exchanged). In 2024, that figure has risen slightly to 52.05%. Even though the saleability has slightly increased, still only around 1 in 2 Portsmouth homes are selling, emphasising the need for careful pricing strategies. (Portsmouth PO1-PO6 – 1st Jan to Nov 22nd).
National figures showed that 52.96% of properties were sold (exchanged and completed) in 2023, only slightly improving to 53.62% in 2024.
If you think about it, you have just over one in two chances of selling if you put your home on the market; therefore, accurate pricing is more important than ever, but it isn’t the only factor. Homes that stand out in today’s market often do so because of exceptional marketing. For sellers looking to maximise interest and achieve a strong price, presenting their property in the best possible light is a non-negotiable step.
The Local Perspective: Portsmouth’s Unique Market Dynamics
Portsmouth’s property market has always had its quirks, and 2024 is no exception. Different postcode areas are experiencing varying levels of activity. In some areas of the city (and villages), homes are selling quickly, while in others, buyers have more room to negotiate, whether on price, fixtures, or even completion dates.
This means that flexibility can be an asset for buyers. Expanding your search radius or considering properties slightly outside your initial criteria could reveal opportunities that others have overlooked. For sellers, understanding these local variations is critical to setting the right price and crafting an effective marketing plan.
A Balanced Perspective: The Seller-Buyer Dynamic
It’s worth remembering that over four out of five sellers are also buyers. This dual role often means that what might be perceived as a loss on one side of the transaction can be recouped on the other. A slightly lower sale price on your current property may open the door to negotiating a better deal on your next purchase.
External Factors Shaping the Portsmouth Market
No property market operates in isolation, and Portsmouth is no exception. National and global trends will inevitably influence it.
That said, Portsmouth’s property market has shown resilience in the past, which is likely to continue. While challenges remain, stabilising mortgage rates and a steady economy offer hope for a more active market in the coming months.
Final Thoughts
As Portsmouth’s property market moves into 2025, success will hinge on understanding the current dynamics and being prepared to adapt. For buyers, this means having your finances in order and being ready to act quickly when the right property comes along. For sellers, setting a realistic asking price for your Portsmouth home ensures your property is effectively marketed from day one.
The journey requires a thoughtful approach, whether buying, selling or keeping an eye on the market. There are both opportunities and challenges ahead – but with the right strategy, the path forward is clear.
What’s your perspective on Portsmouth’s property market? Have you noticed similar trends, or do you see things differently?
