Priming agents for success by unveiling local market trends

As we move into the second half of the year, the property market is looking buoyant. Demand and supply are most definitely up, 13% and 17% higher than last year, respectively, while the doom-laden headlines predicting a market crash appear to have subsided or are less sensationalist for now. Thankfully, even with a looming General Election, the data shows the market is resilient and determined sellers are pressing ahead with their moves.
 
As always, there are nuances cropping up within the market and by harnessing the power of data, both sales and lettings agents can prime themselves for success with an accurate and complete picture of their marketplace. Tracking market activity with over 99.6% of all residential listings in real-time gives agents the chance to discover how they, their competitors and the national market are performing. These are important insights for agents if they are to launch effective business strategies and direct their marketing towards the right audiences.
 
This streamlined approach allows agents to allocate the correct budget to different types of targeting based on marketplace activity. For example, 82% of instructions in the last year came from properties that were not on the market (we call these off-market instructions), so targeting these homes are a key priority for agents. This is because off-market instructions are significantly more likely to be sold than switched or multi-agent instructions. Predicting which homeowners want to move before they put their home on the market is the million-dollar question but one which has become easier to predict following the advent of AI and automation. Our Forecast tool uses both techniques and consistently predicts over 50% of all new instructions. It also regularly generates 60% of all valuation leads for one of our largest estate agency clients.

Higher than last year
 
Data insights will undoubtedly help agents to determine what’s likely to sell and what’s less likely - ultimately allowing them to channel their marketing budgets efficiently in relation to their local market. In terms of further national market trends, our data shows that in 2024, 38% of all concluded listings had at least one price change - up 14% compared with 2022. This suggests sellers are continuing to expect unrealistic prices and has become a feature of the market which is consequently affecting the number of price changes. Looking on a more granular level, we can see this price change rate has grown most in lower price bands of £0- 200k and £200k to £350k during the year to date. The data also tells us that while both demand and supply have risen for all property types, there are still changes happening in 2024. Houses are in demand and getting more popular, which is particularly the case with detached houses, while flats are slightly less likely to convert. However, in the North East, demand is rising relative to supply in every property type including flats, so understanding each local marketplace is paramount.

 In the lettings sector, the supply of properties in the UK is higher than last year but much of this growth has been in London. Overall, nationally, there are still nearly 130,000 less homes to rent than in 2019. Although nearly 520,000 properties have come on to the market in 2024, growth in supply has been mostly among the higher end where we’ve seen a 21% rise in the number of £1,500pcm+ properties. Lower priced homes (£800pcm or less) have fallen by 18% compared to 2023. In terms of demand (lets agreed), volumes are 11.5% higher than in 2023 and continuing to outstrip supply across all price points and in all regions of the UK. The strongest growth in demand by far is in the Capital where it is currently 27% higher than in 2023. What’s more, online agents have a market share of 16.8% of all new instructions 'To Let' which is 18% higher than last year and 86% higher than pre-pandemic. This shows how it’s never been more important for agents to communicate the advantages of using a letting agent among landlords, supported by data, to demonstrate why they’re the best person to market a property.
 
Despite the ongoing affordability pressures following the rise in interest rates in recent months, the market is looking upbeat. By taking the time to interrogate relevant data, agents will be well-poised to understand their local marketplace and position themselves ahead of their competition.