The UK housing market has seen early signs of recovery in 2024, e.surv has said, after buyer demand increased by a third (33%) across the country since December.

e.surv’s latest property watch report also revealed that 30% of surveyors in London and the South noted an increase in the number of homes coming to market in the same period.

Although the pace of annual house price falls continues to slow, most regions continue to see property selling below the initial asking price. The South of England and Wales experienced the steepest declines in this period, with three in five (60%) of areas were selling below the asking price.

However, over half (52%) of surveyors in London reported sales which met or exceeded the asking price.

Head of research at e.surv, Rob Owens, said: "After a challenging year for the UK housing market, it's encouraging to see such strong homebuyer demand return at the start of 2024, coupled with an increasing number of homes hitting the market, particularly in London and the South. Despite this, however, some regions are still seeing many properties sell below the asking price, indicative of the market's ongoing recovery."

Despite this demand for housing, surveyors have reported a "sluggish market" for new-build homes, with a third selling below asking price and with longer sales cycles.

e.surv said that this has led to a heavy reliance on buyer incentives, with around 60% of new homes relying on them to attract and retain buyers, often addressing upfront cost concerns.

Over a quarter (26%) of respondents said they have seen a rise in the use of deposit contribution incentives, followed by payment of legal fees (18%) and stamp duty (18%).

The latest report also revealed that the UK private rental market continued to walk the line between resilience and constraint.

While recent data portrays a landlord community securing favourable refinancing rates, easing pressure on landlords backed by mortgage finance, investor demand for buy-to-let remains negative on a net balance basis (-48%) compared to December.

e.surv found that this supply imbalance is acute in Scotland, London and Northern Ireland, where rent caps, economic factors and a rise in international students in these regions are fuelling demand, pushing asking prices upwards.

Owens added: "We're also seeing a testing market for new-build homes, which continues to be impacted by affordability challenges following the end of Help to Buy. Many developers now rely on buyer incentives geared towards reducing the upfront cost of purchasing a new home.

"Overall, the market shows signs of recovery, but challenges remain. While buyer demand and supply are increasing, regional price disparities and sluggish new-build sales persist.

"The upcoming spring budget holds potential policy interventions such as cuts to stamp duty rates, extended first-time buyer schemes, or even a Help to Buy revival. However, the scale and impact of these measures will be dictated by the heavily constrained fiscal environment the Government finds itself in."

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