Buyer demand rising amid hopes of rate cuts – research

Buyer demand levels climbed significantly between the first and second quarters of this year, research suggests.

GetAgent’s Hotspots Demand Index monitors quarterly homebuyer demand across England based on the proportion of stock listed as sold subject to contract or under offer as a percentage of all stock listed for sale. 

The agency comparison website’s analysis has identified the largest quarter to quarter jump in demand since interest rates started to climb in December 2021 and the third consecutive quarter of positive growth.

The latest index shows that 44.2% of all homes listed for sale across England had found a buyer in the second quarter of this year. This marks a 2% increase in buyer demand levels when compared to the first quarter of 2024 and it is largest quarterly increase seen since interest rates first started to increase in the fourth quarter of 2021 when demand stood at 65.6%.

On a regional level, demand increased the most over the past quarter in Northumberland, with a 5.4% increase.

South Yorkshire has also seen a considerable increase at 4.2%, with Bedfordshire (4%), Leicestershire (4%) and Northampton (3.8%) also ranking within the top five largest quarterly increases.

However, national demand remains down marginally on a yearly basis by 0.4%.

Colby Short, chief executive of GetAgent, said: “We’ve seen numerous industry indicators suggest that the property market is very much on the up in 2024 and our latest buyer demand index further supports the narrative that buyers are returning to the fold, reassured by the market stability that has come from a hold on the base rate since last September.

“With a potential rate cut on the horizon, the likelihood is that buyer market activity will only increase as the year plays out and this presents a great opportunity for agents to capitalise on this improving sentiment to the benefit of their sellers.

“Appropriate pricing for current market conditions remains one of the biggest challenges facing agents. Although buyer interest is building, they remain restricted by higher borrowing costs and it’s the job of the nation’s agents to manage seller expectations to prevent them from getting ahead of themselves and setting unrealistic asking prices.

“In doing so they will play a pivotal role in the returning health of the housing market in the mid to long-term."