introduction
The UK real estate market experienced a remarkable upswing in Q3 2024, with sales subject to contract jumping by 23% compared to the same period last year. Data from TwentyEA shows that 332,200 real estate transactions were agreed upon during the quarter, up from 269,225 in Q3 2023.This significant increase indicates strong potential for continued growth into 2025, with demand remaining robust despite the recent parliamentary election. The East of England and East Midlands saw the largest regional boosts, with major cities like Southampton, Peterborough, and Birmingham also experiencing substantial increases in agreed sales.
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Q3 2024 saw the UK’s largest supply of real estate in six years, with 456,902 properties listed for sale—up 9% from Q3 2023. Additionally, exchanges rose by 10.9%, reflecting a steady recovery in the market.
Katy Billany, Executive Director of TwentyEA, attributes this growth to falling mortgage rates, which have reignited demand. The Bank of England’s decision to maintain the base rate has further stabilized the market, giving buyers more confidence. However, financial strain from fixed-rate mortgages is forcing some homeowners to sell due to affordability concerns.
Real Estate Prices: Modest Increases with Widespread Reductions
In Q3 2024, the average asking price for residential properties across the UK rose to £436,000—an increase of just 0.4% from the same period in 2023. However, this figure marks a £20,000 decrease from Q2 2024, reflecting changes in the types of properties being listed.
Price reductions remain a key trend, increasing by 8.6% from 2023, as sellers continue to adjust to market realities. While Inner London saw only a 1% reduction, Scotland experienced a notable jump in price cuts, rising from 18% in 2023 to 21% in 2024.
Buy-to-Let Opportunities: UK Sees a Surge in Former Rentals on the Market
The UK has seen a sharp rise in the number of buy-to-let properties hitting the market. In Q3 2024, 11.3% of newly listed properties had been rented within the last three years, up significantly from 6.8% in Q3 2023.
A total of 51,684 previously rented properties were listed for sale in Q3 2024, compared to 28,507 during the same period last year. Inner London has seen the largest concentration of these properties, with 47.2% of new listings previously rented, up from 27.1% in 2023.
This trend is not limited to London; every region in the UK experienced an influx of former rental properties entering the sales market in Q3 2024.
Self-Employed and Hybrid Real Estate Agents on the Rise
Self-employed real estate agents have gained significant market share, with an 8.1% increase in property exchanges in Q3 2024 compared to last year. The self-employed model has been particularly successful in properties priced over £200,000, and is even making strides in the £1 million+ segment, with a 44% year-on-year growth.
Regions like the South West, Scotland, and the West Midlands have seen more than 50% growth in self-employed agent exchanges. Brands such as eXp, The Agency UK, and Keller Williams have paved the way for this model, which has now outgrown traditional agencies like Purplebricks and William H Brown.
conclusion
Looking to invest in the UK real estate market? With lower mortgage rates and a surge in supply, now is an excellent time to explore investment opportunities. Visit our website to learn more about how we can assist UAE investors in making the right decisions for their UK property investments.
