'Pent-up demand' leads to surge in December transactions: haart

Additionally, its data shows that the number of new instructions increased by almost 30% on the year in the first two weeks of 2019.

The surge in activity comes as house prices across England and Wales fell by 0.8% and by 3.3% on the year.

The number of first-time buyers registering onto the market has dropped by 18.7% on the month and by 12.8% on the year.

However first-time buyers are capitalising on low prices and are putting down larger deposits, which rose by 2.8% in December.

Paul Smith, CEO of haart, said: “2018 was dictated by depressed market activity as would-be buyers and sellers took stock in uncertain times. But this has created huge pent-up demand in the market, and we saw buyers return to in the usually quiet final weeks of the year, despite ongoing Brexit drama.

“Over the Christmas and New Year period we experienced higher than usual footfall in our branches and phone activity was also up – a very reliable indicator of where the market is headed. The number of applications in the first two weeks of January is already up 4% on the year, and the number of listings is up by almost 30%. This increased interest in the market is already transferring into meaningful activity – transactions spiked in December by a very significant 14% on the month, and 18% on the year. A trend that I expect will only grow over the next couple of weeks.

“The Brexit negotiation period is being drawn out longer than we anticipated, but evidently, buyers are not prepared to put their lives on hold forever. Clearly – the market is starting to move on.

“In December we also saw a 17% jump in sales to landlords across England and Wales. This was matched by a 16% fall in sales to landlords in London. Savvy investors continue to head to pockets of the west and east midlands, and the north-west, where more favourable yields can be achieved. Aspiring landlords should remember that parts of the UK experienced price growth as high as 12% in 2018, there are 34% more tenants registering to rent on the year, and rents are up by almost 4% across the country. Now is the time to act whilst mortgage rates stay at rock bottom and lock themselves into a great deal.”