Analysis shows long term rebalancing housing market

The average volume of UK properties listed for sale month-on-month rose by 58% in 2023 compared to a year previously, underscoring the rebalancing of supply and demand.

According to new analysis by estate agency Jackson-Stops, the Isle of Wight was the front runner of this trend, seeing an 83% increase of homes on the market in one year alone, closely followed by Norfolk (78%), Somerset (75%) and Shropshire (75%).

Jackson-Stops, who analysed average volumes of new listings on Rightmove’s website from 2022 to 2023, say the figures are representative of market resilience.

Nick Leeming, Chairman of Jackson-Stops, comments: “We are at last observing a rebalancing of supply and demand in out-of-market hotspots, as the influx of available properties bridges the demand gap and underscores commitment from movers to make big life changes. A boost in volume gives sellers the reassurance that there are good houses to move on to, one of the main barriers for house hunters in 2022 due to chronic lack of supply.

“With the probable reduction in interest rates as inflation cools, the current market not only favours sellers but also benefits potential buyers, particularly with fixed-rate products improving and a higher rate of mortgage approvals.”

The top three counties for new property listing volumes are all waterside locations, and typical destinations for downsizers. 

Leeming explains: “The Isle of Wight, Norfolk and Somerset all have waterside markets that absolutely thrived during the post-lockdown ‘race for space’ as buyers sought their country idyll, leading to a sustained shortage of supply. As sellers in these locations are on the rise, it is likely downsizers looking for their last-time buyer homes are heavily impacting market trends, as well as those ready to switch back to urban life, steadying the pendulum of supply to align with demand for properties in these areas. Whilst this may take the heat out of some further flung locations, the South East and London markets are likely to see demand only increase.”

Leeming continues: “After a frenzied start to the decade for the housing market, where heightened competition and pent-up demand resulted in significant house price growth, the proof that greater stock is entering the market will help to create a more balanced housing market moving forward.

“Across the Jackson-Stops network, we are seeing an uptick in new properties being listed, bubbling in key hotspots such as Norfolk, Cornwall and Northampton. While this isn’t being driven by one reason in particular, lifestyle changes, downsizing, or seeking a change of pace, are all popular reasons we are hearing from sellers. It’s positive to see sellers adopting a pragmatic approach after an extended period when many were waiting to see what mortgage rates would do, encouraged by a steadier economic picture.

“While buyer preferences may change from open plan living to more separate spaces to accommodate home working, gyms and playrooms, popular property styles such as Georgian and Victorian homes always endure.”

Whilst nationally, Norfolk was the county to have seen the second highest increase in sellers in 2023 according to Jackson-Stops’ analysis of Rightmove listings, it was Chelmsford that came out ‘top of the stocks’ for new listings according to its internal branch data.

Across the Jackson-Stops network, in 2023 Chelmsford in Essex saw a 79% increase in the number of listings, closely followed by Sevenoaks (70%) and Chester (54%).

 Source: Jackson-Stops’ analysis of internal branch data