In contrast, activity is increasing at a slower pace, primarily for first-time buyers and second-steppers who heavily rely on mortgages.
The number of new sellers in both segments has risen by 10%, while the increase in agreed sales is more modest, up by 9% and 13%, respectively, compared to last year. This slower growth is likely influenced by persistently high mortgage rates, which have remained elevated longer than anticipated earlier this year, particularly affecting those looking to move within these sectors.
Despite the more challenging conditions for buyers, the total number of agreed sales has reached the same level as in 2019. However, this comes amidst significantly higher mortgage rates, averaging 4.84% compared to 2.45% in April 2019 and a notable 22% increase in average property prices. Nonetheless, average wage growth of 27% over this period has somewhat offset the affordability challenge, slightly outpacing house price growth.
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Bannister continues: “The summer holidays are typically a time of distraction for some home-hunters, as they temporarily pause their search and head abroad or to the British seaside.
“In addition, the Euro 2024 football tournament and the Olympics this summer, likely followed by a General Election during the second half of the year, will add more buyer distractions than usual. There appears to be a tempting window of opportunity for those who are considering a move to act now before these distractions arrive.
“While affordability is still very tight, property and mortgage market conditions remain stable, buyer choice is good, and many sellers will recognise that it is the right time to negotiate on price to agree a deal. The boost in activity suggests that many home movers are already springing into action to make their move.”
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