UK Housing Market Update: Insights from Rightmove's November 2024 Report

Current Market Dynamics

The average asking price of properties listed in November 2024 fell by 1.4% (£5,366) to £366,592. This seasonal decrease is larger than the typical November drop of 0.8%, likely due to uncertainty stemming from recent budget announcements. Despite this, annual growth remains positive at 1.2%, aligning with predictions of a 1% rise for 2024.

Sector-Specific Insights

First-Time Buyers

Average asking price: £225,340
Monthly change: -0.7%
Annual growth: +0.9%

Second-Steppers

Average asking price: £340,319
Monthly change: -0.8%
Annual growth: +2.1%

Top of the Ladder

Average asking price: £653,290
Monthly change: -3.3%
Annual change: -0.8%

The largest decrease was observed in the "top of the ladder" segment, highlighting continued affordability challenges in the higher end of the market.

Buyer and Seller Activity

Sales Agreed: Up by 26% compared to the same period in 2023, reflecting a rebound in buyer confidence post-Bank Rate cuts.
New Sellers: 6% more properties were listed for sale than last year, showing increasing willingness to sell despite affordability challenges.

Seasonal patterns are emerging as expected, with activity slowing as Christmas approaches. However, post-rate-cut optimism has sparked a temporary boost in demand.

Regional Variations

The market remains price-sensitive, with seller competition at its highest in a decade. Regions like London show mixed trends, whereas boroughs like Camden reported annual price growth of 4.6%. In comparison, areas like Brent experienced declines of -3.1%. This underscores the fragmented nature of price movements across the UK.

Affordability Trends

First-time buyers continue to face affordability hurdles. Mortgage costs for this group are closely tied to the Bank of England's two-year fixed-rate averages. Despite slight relief from rate cuts, affordability remains challenging due to stagnant wage growth.

2025 Market Outlook

Rightmove forecasts a 4% rise in average asking prices for 2025, driven by lower mortgage rates and pent-up demand expectations. This would mark the highest annual growth rate prediction since 2021. However, affordability constraints and a slower-than-expected pace of rate reductions could temper this growth.

The number of completed sales is projected to surge ahead of the stamp duty deadline in March, creating potential short-term market turbulence.

Key Takeaways for Buyers and Sellers

Buyers: Those ready to move before Christmas may find greater price flexibility.
Sellers: Competitive pricing and well-presented properties remain critical to attracting buyers in an affordability-stretched market.

The UK housing market is going through a complex time, influenced by economic policy changes and seasonal factors. While 2024 has shown resilience compared to the previous year, 2025 offers cautious optimism, with potential for price growth contingent on improved buyer affordability. Staying attuned to these evolving dynamics will be crucial for buyers and sellers.

Local estate agents like Farrell Heyworth play a significant role in navigating these market complexities. With offices across the North West, we offer tailored support to buyers and sellers, leveraging their local expertise to provide insights into regional trends and pricing strategies. Our commitment to delivering excellent customer service ensures clients are well-informed and supported throughout their property journey in these dynamic times.