Property demand dropped in 2023 but is it set to rebound?

Buyer demand across England crept up during the final months of 2023 but remains down annually, research has revealed.

Analysis has revealed that demand rose 0.3% in the final quarter of 2023, although it remained down 6.7% versus the fourth quarter of  2022. 

The figures came from GetAgent’s Hotspots Demand Index, which monitors homebuyer demand across England on a quarterly basis based on the proportion of sale stock listed as sold subject to contract or under offer.

Just one area of England saw positive movement year on year. Across the City of London, buyer demand climbed by 2.4% during the fourth quarter on an annual basis. 

Durham saw the largest annual decline in buyer demand levels, down 15.7%, followed by Suffolk and Cheshire.

While overall demand only crept up by 0.3% on a quarterly basis, there are far more prominent signs of growing market momentum at county level, GeAgent said.

Rutland saw buyer demand increase by 3.8% on a quarterly basis while both Buckinghamshire and Berkshire also showed strong signs of growth at 3.4%. 

Colby Short, co-founder of GetAgent, said: “Our latest index very much echoes wider industry data on market performance during the closing stages of 2023. 

"While the landscape remains largely subdued, there are green shoots of positivity starting to show and in some areas, these shoots are growing at a far swifter rate than the national picture alludes to. 

"Although the market is yet to spring back into action when viewed on an annual basis, there’s no doubt that things are improving and this puts us in a great position as we enter the new year.”

It comes as Propertymark members reported a fall in both supply and demand during November.

There were on average just six new homes placed for sale per member branch in November, a 26% drop on October’s figure, according to the agency trade body's latest Housing Insight Report. 

Meanwhile. the number of buyer registrations reduced from 53 in October to 49 in November.

Nathan Emerson, chief executive of Propertymark, said: “Economic uncertainty continues to pervade the UK economy and housing markets. In the residential sales sector, seasonal trends are undoubtedly weighing on market performance. 

“However, there are also strong indications that the market is cooling in general. Demand, as measured by new buyer registrations, is trending downwards and though offset by a reduction in existing stock levels and new supply, price pressures are increasing. This is evidenced by the majority of members reporting that properties continue to sell for less than asking price.”