Rightmove saw a RECORD number of new property advertisements on Boxing Day

According to Rightmove, a record number of sellers have put their property up for sale this Boxing Day.

Britain's largest online property portal said the number of new sellers has risen by 26 percent compared to the previous record set last year.

The number of buyers who contact real estate agents on Boxing Day about homes for sale was also 17 percent higher in 2022 than on the same day.

Meanwhile, visits to the Rightmove website were up 8 percent on last year.

Boxing Day traditionally marks the start of home moving activity which begins to increase after the usual Christmas lull.

But Tim Bannister, a property expert at Rightmove, believes the recent rise in activity could be a sign of things to come and that mover activity will start to increase early this year.

He said: 'The scale of the Boxing Day rebound this year is an early positive sign at the start of the year that buyers and sellers are active and taking action, including likely some movers who had put their plans on hold last year.

“Although it is still early days, it will be critical to monitor activity as it develops in late winter and spring, especially to determine whether sellers are pricing attractively enough to quickly close a sale with a buyer, as buyers now have more options. choice than last year and are still very price sensitive.'

Will there be a recovery in activity in 2024?

Last year saw a significant decline in the number of homes sold across the country as higher mortgage rates and fears of a drop in home prices caused some homebuyers, movers and real estate investors to pause.

According to the latest HMRC figures, the number of property transactions has fallen by 22 per cent year-on-year.

As we enter 2024, there is reason to believe that the market could see an uptick in activity as buyers and movers who postponed their plans last year decide to move forward with their plans.

Financial markets now expect the Bank of England to start cutting base rates and mortgage lenders have cut rates in anticipation of this happening.

HSBC and Halifax have already cut rates in January, with the cheapest fixed deals falling below 4 per cent for the first time since May.

Many people within the mortgage industry expect further rate cuts to follow in the coming weeks.

While mortgage rates will still be much higher than before rates started rising in late 2021, some market commentators believe the rate cuts will be enough to stimulate activity.

Catherine Merrett, sales manager at estate agency Antony Roberts in Richmond, said: 'There is a lot more optimism in the air about 2024 and the likelihood of it being a better year for the market as mortgage rates start to fall.

“Many suppliers have been waiting for rates to move in the right direction before going to market, and now that that's happening, we're optimistic about the year ahead.”

Anthony Codling, head of European housing and building materials at investment bank RBC, said: 'The housing market is still challenging, but with inflation falling the prospect of a bank rate, and therefore further cuts in mortgage rates, is getting closer.

'The temperature in the UK housing market was frigid in 2023, but early indications are that the housing market may warm up in 2024.'

However, some within the real estate industry are less optimistic about 2024 and believe we will see a continuation of 2023.

Iain McKenzie, CEO of The Guild of Property Professionals, said: 'As we enter the new year, we expect much of the same, at least in the first half of the year.

'If inflation continues to fall in 2024, interest rates will also fall in the long term and more people can end up on the property ladder.

'It is still too early to say whether this will be enough to stimulate house price growth next year, but a recovery for the market is certainly on the horizon.'