Property sales return to pre-pandemic levels amid greater interest in flats says Rightmove

Flat out? Property sales return to pre-pandemic levels as buyers show renewed interest in apartment living

  • Number of property sales agreed is 1% below the levels seen in March 2019
  • Rightmove said rise in agreed home sales is due to a boost in the sale of flats
  • Across Britain, agreed property sales are 18% below this time last year

The number of home sales agreed is back to pre-pandemic levels for the first time since September, just before the mini-Budget.

New research by Rightmove found agreed sales numbers are now only 1 per cent behind the levels seen in March 2019. 

Rightmove defined ‘sales agreed’ as a home listed for sale on its website that has found a buyer and been marked ‘sold subject to contract’ by the estate agent. 

However, the final sold price between a seller and buyer can sometimes be different from the final listing price on Rightmove, which is recorded on Land Registry several months later.

The number of property sales agreed is 1 per cent behind the levels seen in March 2019, according to Rightmove

Rightmove attributed the rise in agreed sales to a rise in the number of agreed sales on flats, where levels are now 10 per cent above 2019 after being 11 per cent down at the beginning of the year.

The trend is the most pronounced in London, where agreed sales of flats are now 23 per cent higher than in March 2019.

The total number of sales agreed has recovered from being 21 per cent behind 2019’s levels in January.

Overall, sales agreed have recovered the most in London and are now 11 per cent higher than March 2019, while sales agreed in the East Midlands are taking longest to catch up and are still 11 per cent below 2019.

Across Britain, agreed sales are 18 per cent below the red-hot property market of this time last year.

Average mortgage rates have been edging down this year. The average mortgage rate for a five-year fix, with a 15 per cent deposit mortgage, was 4.63 per cent in March, down from 5.89 per cent in October, according to Rightmove data sourced from Podium Solutions.

Rightmove has revealed the level of sales agreed across different regions in Britain

Rightmove has revealed the level of sales agreed across different regions in Britain

The average price reduction has increased and is now back to its pre-pandemic level of 6 per cent, the equivalent of £22,000, based on the current national average asking price. This is up from 5 per cent during the pandemic.

A third of properties now see a price reduction, which is up from last year’s 19 per cent during the frenetic market, but in line with the pre-pandemic level of 34 per cent.

However, the final sold price between a seller and buyer can sometimes be different from the final listing price on Rightmove, and is only recorded on the Land Registry several months later. 

Tim Bannister, of Rightmove, said: ‘The market is remaining surprisingly robust given the economic headwinds that have affected movers in the last six months.

‘While the market is by no means at the exceptional level it has been in the last couple of years, it is a positive sign for agents that sales at a national level are being agreed at the same rate as the last more normal market of 2019, though there are regional differences across Britain.

‘The level and size of reductions has also returned to its pre-pandemic norm, though pricing right the first time can often lead to a quicker sale, so it’s important for sellers to speak to an agent about their local market so that they price realistically and give themselves the best chance of finding a buyer.’

The average price reduction has increased, says Rightmove, bringing joy to many homebuyers

The average price reduction has increased, says Rightmove, bringing joy to many homebuyers

The average asking prices of flats 

Rightmove has revealed a 2 per cent increase in the average asking price of a flat from 2022 to 2023, and a 10 per cent jump from 2019 to march 2023.

Its findings are based on the average asking prices of listings on Rightmove, rather than the final sold prices which appear in Land Registry some months later.

• Average asking price of a flat in March 2023 – £291,985 

• Average asking price of a flat in March 2022 – £285,596 

• Average asking price of a flat in March 2019 – £265,757 

Robert Sturges, of estate agents Chestertons, said: ‘We have a high proportion of flats for sale and we have noticed a significant upswing in buyer demand for apartments of all sizes.

‘This demand for flats is driven by professionals who wish to shorten their commute, parents who invest for their children but also overseas buyers who are taking advantage of favourable currency exchange rates.

‘In the face of rising living costs, some buyers may also decide that a flat is financially more viable than a house at this moment in time.

‘Another driving force behind the demand for flats are renters who review their finances amid rising rents and decide that, despite higher mortgage rates, buying presents a better option long-term. We are therefore seeing a number of first-time buyers entering the market.’