Monthly sales agreed volumes for first-time buyers are now higher than in September when the ill-fated mini-Budget took place as soaring rents reach new records and make buying more compelling for those who can raise the deposit and obtain a mortgage, research from Rightmove reveals.

While the number of sales agreed is now on a par with the same period in 2019 Rightmove says agreed sales volumes are now just 1% behind March 2019 defying the expectations of many.

HEADWINDS

New seller asking prices have risen just 0.2% (+£890) to £366,247, lower than the average increase of 1.2% for this time of year and a sure a sign that many new sellers are taking note of the economic headwinds and a slower paced housing market.

Tim Bannister, Rightmove’s Director of Property Science, says: “The current unexpectedly stable conditions may tempt more sellers to enter the market who had been considering a move in the last few years but had been put off by its frenetic pace.

“The first-time-buyer sector typically accounts for over a third of all sales which are often the start of chains, so these positive sales agreed figures are good for the health of the whole market.

“More competition amongst lenders in the smaller deposit, higher loan-to-value ranges is positive news for those would-be first-time buyers who have saved up their deposit and can still afford to move.”

TURNING POINT

Karl Tatler, Managing Director at Heswall-based Karl Tatler Estate Agents, says: “The beginning of the spring market has been a real turning point, after a difficult start to the year and following the turbulence of the last three months of 2022.

“Listing figures are comparable with last year, while viewing figures are down only slightly, which given the exceptional market of last year is quite remarkable.”

And Ben Rose, Director at Chorley-based Ben Rose Estate Agents, adds:  We’re seeing locally that the number of new instructions and sales agreed is the highest it has been for several months.

“While this is not the very high level they were during the pandemic years, they are high compared to before the pandemic.

“This upturn also suggests the economy is far stronger than expected and this is reflected in the buyer’s confidence in the market.

“We’re hoping these increased numbers will now become the new norm, which appears to be the case given the consistency of them this year.”

The steep drop in property sales that followed the shock of the mini-Budget has bottomed out.”

Tom Bill, Head of UK Residential Research at Knight Frank, says: “The steep drop in property sales that followed the shock of the mini-Budget has bottomed out.

“The mortgage market has stabilised and buyers increasingly accept they are in a new lending landscape after 14 years of ultra-low rates.

“Buoyed by savings accumulated during the pandemic, record levels of housing equity and a strong jobs market, activity has been solid this year at all price points.

“The further we get from the mini-Budget, the stronger the market is performing. That said, homeowners will experience more financial pain as they roll off historical fixed-rate deals and UK prices should fall by a few percent this year.”