Property & Construction Daily

The Property & Construction Daily provides a sector-specific comment from leading analyst Alastair Stewart. His daily perspective provides a round-up of market statements, news, economics and views from the property and construction sectors.

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February 23, 2024

Economic research – Housing demand recovers strongly in January, Zoopla | Fortnight ahead

Economic research

House prices fell 0.8% in the year to December, compared to a -1.4% Y/Y to October 2023, but demand and other measures of housing market activity have improved since the new year, according to the latest House Price Index report from Zoopla. The largest Y/Y price falls to December were in the East of England (-2.5%) and the South West (-2.2%). Northern Ireland and Scotland were the strongest regions, with prices up 3.2% and 1.8% respectively. There has been a strong seasonal uplift in buyer demand in the first three weeks of 2024 (see below), with buyer demand 12% higher than a year ago, although still 13% below the five-year average. New sales are 13% higher than a year ago and up across all countries and regions, most markedly in Yorkshire and the Humber (+19%) and the West Midlands (+17%). The number of homes listed for sale has increased by 22%. The report also highlights a potential return in demand in London, with house price to income multiples falling from a peak of 15x in 2016 to a still relatively high 13x. Looking forward to the rest of 2024, Zoopla concludes: “It seems unlikely that mortgage rates will fall much further in the near term, remaining in the 4% to 5% range and the best deals for big deposits. Lower mortgage rates are welcome news but will support sales [volumes] rather than price rises in 2024.

2024 Housing Demand

Fortnight ahead

23 Feb 24 - Fortnight ahead
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