There’s no denying that the UK property market has experienced a difficult few years. Rising interest rates and a cost of living crisis have forced lots of families to downsize – and this means there has been a shift in the types of properties sold.
So, if you want a clear overview of the UK housing market, you are in the ideal place.
You can click here to see our blog about problems with the UK housing market, or you can keep reading to find out: Which types of properties are selling? How active is the market? And is now the right time to sell? Keep reading for all the answers you need.
How active is the UK property market currently?
There has been a significant decrease in the number of house sales completed in late 2023 and early 2024 compared to the same periods in 2021 and 2022.
For example, February 2021 saw 96,081 house sales completed in the UK – but two years later, in February 2023, this figure fell to 48,821. The Guardian also reported that 2023 may have had the lowest quantity of house sales in a decade.
This year, many economists expect that the interest rates will start to go back down. Buyer activity will likely increase if this happens since mortgages will be less expensive. Lower interest rates are also usually a sign of reduced levels of inflation, which means the average person has more money to spend.
Are large properties still selling?
Larger properties are being listed on the market just as frequently as people seek to downsize due to no longer being able to afford the house. However, these properties sell in smaller numbers since fewer people have the budget and are typically completed at noticeably less than the asking price.
Are flats and terraced houses selling?
Flats and terraced represent a greater proportion of sales than large, detached properties, as they are on the lower end of the market, and people are downsizing into these.
For more information about which types of properties are selling, read our blog about 2023’s most popular sold properties.
Have property prices gone up or down over the past year?
On average, house prices have decreased across the UK over the past 12 months.
In Wales, the average property sells for roughly £215,000; in Northern Ireland, this figure is slightly lower at approximately £180,000. In Scotland, a typical house sells for around £195,000, and in England, the average sale price is £310,000. These figures are a slight reduction from the same time last year.
Dozens of major towns and cities across the UK have experienced price deductions. These include Manchester, Cardiff, Birmingham, Edinburgh, and more.
Is now the right time to sell a property?
Whether you should sell your house right now depends largely on your circumstances.
Although property prices have decreased slightly in the past twelve months, if you cannot afford your current house and need to downsize immediately, then it could be the right time to do so. Likewise, the proportion of UK house sales that are flats and terraced houses has gone up – so if you are trying to sell one of these, you may still find plenty of interested parties.
Keep in mind that if you initially purchased your house within the past few years, it may have slightly decreased in value in that time. Once you factor in the legal fees and estate agency commission associated with selling a house, you will need to budget for this.
Economists generally do not know when interest rates will go down or when the housing market will increase in activity again. Therefore, if you are waiting for market conditions to improve, you may be waiting indefinitely, making it difficult to plan ahead.
When is the most popular time of year to sell a house?
Spring is generally considered the most popular time of year to sell a house since people want to complete the deal before their summer holidays.
By extension, August tends to be one of the quieter months of the year since lots of families are on holiday – or have their kids at home every day and are preparing for the new school year – and, therefore, don’t want the hassle of selling their home.
Christmas is another quieter time of the year for similar reasons.
Average house prices based on property type
The average house price will vary significantly depending on the location but also based on the property type.
Detached houses are almost always the most expensive, followed by semi-detached properties. Terraced houses are usually the third most costly, while flats are the least expensive on average.
In major cities, house prices tend to be higher. For example, in Edinburgh, a detached property sells for £571,501, a terraced house goes for £402,824 and a flat averages a selling price of £311,098. By contrast, in a rural area like Moray, a detached property costs £304,286, a terraced property sells for £108,500, and a flat costs around £84,429.
How long does it take to sell a house based on property type?
Even in a major city like London, where millions of people dream of living, there is a significant discrepancy in selling time depending on the type of property. For example, in Islington over the past year, detached houses are taking 460 days on average to find a buyer, while flats are selling in 266 days. Semi-detached properties take 168 days to sell, and terraced properties take 248 days.
Should I purchase a ‘fixer-upper’?
When housing market conditions are bad, it may make sense to purchase a house that isn’t currently in the best state. You will get this property at a reduced price, which could help to put it in your budget. Furthermore, if you are skilled with ‘handyman’ activities, then you may be able to make many of the fixes yourself.
What happens if I can’t find a buyer for my house?
With market conditions currently difficult in the UK and the number of sales being completed going down, it is possible that you are unable to find a buyer for your property. If you find yourself in this position, don’t panic – you still have options.
Firstly, reducing your asking price for the property may attract more buyers. However, it may also result in you selling the house for much less than you had intended. You should speak to an estate agent or property expert about what similar houses are selling for in the area to see how yours compares. If in doubt, you may want to wait a few months to see if market conditions pick back up.
As a second option, a trustworthy cash house buyer can purchase your property for an up-front sum of cash, in any condition, anywhere in the country. You can complete the deal and the funds in your account within 7 days – which may prove invaluable if you are working on a short timeframe or don’t want your property chain to break down.
While other options are available to you, such as selling the property at auction, thousands of sellers consider using a cash buyer as the best way to go.
