A recent survey indicates that property sales and demand in the UK witnessed a nearly one-fifth increase in the final weeks of 2023 compared to the previous year, driven by improved sentiment. Zoopla, the property website, reported a 17% rise in new sales agreements in December compared to the same period the previous year, which had seen reduced market activity due to higher mortgage rates.
Demand also surged by 19%, measured by prospective buyers contacting agents to inquire about and arrange viewings for specific properties listed on Zoopla. The increasing inventory of homes for sale is expanding choices and bolstering sales. Zoopla's data reveals an annual 1.1% decline in house prices across the country this month, with a more pronounced drop of 1.5% in London, bringing the average price to £536,800. Within the capital, prices in the City increased by 0.3%, while Croydon, Bromley, and Woking experienced the most significant price declines at 3.5%, 3.4%, and 2.8%, respectively.
Cash buyers constituted a third of all property sales, while transactions involving mortgages declined by a third due to higher mortgage rates. The Bank of England had raised its base rate in successive steps, reaching 5.25% by August to address persistent inflation. However, the rate has remained unchanged since then.