The UK property market has taken a significant hit this year, with a 6% drop in the proportion of homes securing offers within six months. According to Connells Group data, just 52% of properties listed on the market in January received an offer within half a year, down from 58% in January last year.
Mid-market homes, particularly two- and three-bedroom properties, remain in high demand – 55% and 53% respectively secured offers. These types of homes often appeal to first-time buyers and families who are driven by necessity rather than choice. In contrast, the luxury end of the market has seen a sharper decline, with five-bedroom properties experiencing a steep drop from 59% to just 41%. This downturn is largely attributed to elevated mortgage costs, which disproportionately affect those requiring larger loans for more expensive homes.
Regional variations are also playing out across the country. The Midlands and North lead the way in terms of transaction speed, with Bury identified as having the quickest times overall. Scotland remains the fastest regional market, with 68% of January-listed properties receiving offers within six months – a trend attributed to relative affordability compared to the more expensive South.
Connells Group's Research Director Aneisha Beveridge noted that while the housing market is still active, buyers are exercising greater caution. She highlighted that mid-market demand remains strong, driven by life changes rather than purely discretionary choice. However, she warned that higher-value homes face a tougher environment due to mortgage costs – an issue felt most acutely in expensive regions.
The data also reveals a marked decline in the performance of leasehold homes, where just 48% received offers compared to 57% last year. This drop is more pronounced than the overall market trend and may indicate increasing buyer caution following recent scrutiny of leasehold terms and ground rent arrangements.