Housing market rebounds with £88bn surge as first-time buyers lead the way

The UK housing market has bounced back, with £88.3bn spent on property purchases in the second quarter of 2024, according to Savills.

This pushed total spending over the past year to more than £350bn, slightly above pre-pandemic levels.

The £88bn figure represents an 8% jump compared to the same time last year.

Expect to see size of housing market expand further

The increase in spending was driven by a 22% rise in mortgage lending as stability returned to the mortgage market.

First-time buyer activity made up 24% of all spending, the highest proportion in eight years, according to Savills.

Lucian Cook, head of residential research at Savills, said: “As interest rates continue to ease, we can expect to see the size of the housing market expand further over the next 12 months. Lower mortgage costs will encourage a wider range of buyers back to the housing market.

“In particular, we should see an increase in upsizers who put plans to trade up the housing market on hold in the face of higher mortgage costs. This cohort is likely to be at the forefront of that growth, although some may wait until after the government’s October budget before taking the leap.”

Meanwhile, spending by cash buyers, which accounted for 43% of the total market in 2023, has dropped by around £2bn to 39% in Q2 2024.

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