Housing market surges with record-breaking agreed sales

Great Britain’s property market saw a big lift in agreed sales in May, marking the most active month since 2021 – and the highest since March 2022.

According to Rightmove’s latest data, the surge reflects improved conditions, with home-movers undeterred by the recent stamp duty increase.

Nationwide, the number of sales agreed rose by 6% compared to the same period last year.

Agreed sales hotspots

The platform’s property expert, Colleen Babcock, said: “This month’s hotspots reflect broader market trends driven by affordability and attractive property prices.

“With mortgage rates higher than the lows we saw post financial crisis, and affordability stretched, many buyers are continuing to look for value, which is likely reflected in the lower than average prices of some of the current hotspots.”

She added: “With the overall number of sellers continuing to run at a decade-high, sellers need to also be mindful of the competition they might face from other sellers trying to secure a buyer in their area.”

Wales saw the best improvement

However, regional variations in sales were stark with Wales seeing a 15% jump in agreed sales, while London lagged with just a 1% uptick.

The standout area was Heywood in Manchester, where buyer agreements soared by 88%, nearly doubling last year’s figures.

Other notable hotspots included Pudsey in West Yorkshire, with an 85% increase, and Wilmslow in Cheshire, up by 66%.

Affordability appears to be a key driver, with nine of the top 10 sales hotspots featuring average property prices below the national average.

The decline in mortgage rates has also played a role, with the average five-year fixed rate now at 4.61%, down from a high of 6.11% in July 2023.

Moving the market forward

Nathan Emerson, the chief executive of Propertymark, said: “With house prices adjusting, mortgage products improving, and overall confidence from buyers and sellers on the up, this is evidently creating the perfect combination and propelling the housing market forward.

“Alongside this, the country’s increasing population and rise in the number of people looking to buy a home are playing a key part in this growing trend.”

He adds: “Despite rises in Stamp Duty commencing across England and Northern Ireland from April, those serious about moving home have not let this dampen their home moving plans.

“As we move into summer, which is a traditionally busier time of the year, we expect to see more properties on the market, ultimately providing movers with more choice, which can lead to easier negotiations.”