2024 in Review Hertfordshire Property Market
As we step into 2025, several indicators point to continued growth
Property Stock Levels at a Ten-Year High
Recent figures indicate that current stock levels in Hertfordshire have reached a ten-year high, reflecting both more sellers returning to the market and a rise in new listings. In North East Hertfordshire, for instance, 1,792 homes are currently available to buy, representing a nearly 99% increase compared to the three-year average—slightly lower than the East of England figure of 116.2% but still a significant jump.
Despite the notable upswing in available properties, there isn’t a sign of rampant oversupply. Over the last decade, supply and demand have mostly stayed in balance, preventing significant house price falls. While unsold stock has grown—partly due to longer selling times and some sellers returning to the market—many predictions of a ‘flood’ of desperate sellers in 2023 simply did not materialise.
More Choice for Buyers, But Realism Needed for Sellers
The positive side to this heightened supply has been increased choice for buyers. As interest rates eased slightly towards the latter part of 2024, buyer demand rose accordingly. In fact, the number of sales agreed in 2024 across the country nearly doubled the increase in new listings, illustrating how improved mortgage availability and stabilising rates can boost transaction volumes.
However, realism around asking prices remains crucial. Data from the past year shows that homes which undergo a price reduction are less likely to sell promptly and are at higher risk of sales falling through. In 2024:
• 41.35% of properties had a price reduction
• 54.30% of properties ended up selling
• 23.41% of sales fell through
These figures highlight that correct pricing at the outset, coupled with exceptional marketing and the expertise of a reputable estate agent, can help ensure a successful completion.
A Return to Growth in 2024
After a challenging 2023, where buyers and sellers often found themselves at odds, 2024 became a year of recovery. According to the latest Land Registry data:
• The average UK property price is £292,000, up 3.4% year-on-year
• Prices are now 1.25% above their previous peak in September 2022
This upward movement follows a modest dip between September 2023 and February 2024, after which the market began rallying. Comparing 2024’s transaction levels with the previous five-year average reveals that sales are just under 1% higher—remarkable resilience given the economic and political turbulence of late.
Spotlight on North East Hertfordshire
Alongside national indicators, local data¹ provides valuable insights into how the market in areas like Stevenage, Hitchin, Baldock, and surrounding towns has evolved:
• Annual listings (last three full years):
NE Herts average: 5,718
East of England: 178,999
• Listings in the last full month:
NE Herts: 414
East of England: 11,586
• Homes currently available to buy:
NE Herts: 1,792
East of England: 66,648
• Availability ratio (months of transactions available):
NE Herts: 7.43
East of England: 8.96
This data shows a busy local market but one that remains in relatively stable territory, especially when compared to broader regional trends.
Meanwhile, monthly figures on average asking vs. achieved sales prices—tracked from January 2023 to December 2024—show some price adjustments along the way, but no dramatic falls. The gap in North East Hertfordshire is narrowing, suggesting that more accurately priced properties tend to sell faster.
Early Signs for 2025
Positive Predictions
As we step into 2025, several indicators point to continued growth:
• Interest Rates & Mortgage Approvals: Rates have been gradually edging down, and November 2024 mortgage approvals were
32.14% higher than the same time last year. This bodes well for buyer confidence in early 2025.
• Increased Buyer Demand: Leading portals such as Rightmove reported record-breaking Boxing Day traffic, with a 26% rise in
newly listed properties and a 20% jump in buyer enquiries compared to the previous year.
Potential Headwinds
While the overall outlook is positive, certain factors could temper the pace:
• Stamp Duty Changes (end of March 2025): Historically, any alteration to stamp duty brackets causes a short-term rush followed by a quieter period as the market adjusts. However, since these changes simply revert to pre-Covid norms, any major disruptions to property values are unlikely.
• Ongoing Price Sensitivity: If stamp duty increases or interest rates fluctuate again, sellers may need to allow greater room for negotiation.
What to Expect
Barring any unforeseen economic shocks, most forecasters predict:
• Stable or modestly falling inflation
• Further small cuts to the Bank of England base rate
• A slow but steady drop in mortgage rates
• House price growth of around 3%
• A 5% rise in transactions, to around 1.15 million
Looking at the Hertfordshire market specifically, the higher volume of new listings and returning buyer confidence should foster a healthy number of transactions. At Putterills, we anticipate steady movement throughout 2025, underpinned by realistic pricing and diligent buyer qualification.
Final Thoughts
In summary, 2024 has been a year of recovery and renewed optimism in Hertfordshire’s property market, with stronger transaction levels and modest house price growth. The return of buyer confidence, enhanced by slightly lower interest rates, has already carried momentum into 2025.
If you are considering a sale or purchase this year, setting an accurate asking price and choosing an experienced local agent will be key to achieving a successful outcome. Our team here at Putterills is always on hand to offer expert guidance tailored to the Hertfordshire market.
For more insights on North East Hertfordshire, St Albans, Welwyn Garden City, or any other local areas, get in touch with your nearest Putterills branch. We look forward to helping you navigate what promises to be an exciting 2025 for property across our region.