Recent data indicates that house sales were 15% higher in the past few weeks compared to the same period last year, as mortgage rates have begun to decrease
UK property sales are expected to increase by 10% this year, according to Zoopla. The company foresees selling 1.1 million homes in the current year.
Recent data indicates that house sales were 15% higher in the past few weeks compared to the same period last year, as mortgage rates have begun to decrease.
Zoopla’s findings reveal a surge in agreed sales due to an 11% rise in buyer demand, with the number of homes for sale being 21% higher than a year ago.
The survey, covering the four weeks up to February 18, shows a mere 0.5% decline in house prices compared to the previous year, marking a decrease from the 1.4% drop recorded in October nationwide.
The housing market has proved very resilient to higher mortgage rates and cost of living pressures, said Zoopla executive director Richard Donnell.
More sales and more sellers shows growing confidence amongst households and evidence that 4-5% mortgage rates are not a barrier to improving market conditions, he said.
The momentum in new sales being agreed has been building for the last five months and the sales market is on track for 1.1 million sales over 2024 supported by new sellers coming to the market, he said.
While sales are set to increase we don’t expect house price growth to accelerate further in 2024, he added.
Despite the anticipation of a base interest rate cut by the Bank of England later this year leading to falling mortgage rates, Zoopla advises borrowers to expect rates hovering around 4% to 5% for a significant part of the year.
Southern regions of England, excluding London, have witnessed the most significant annual price declines. The average home price in this area now stands at £344,000, 30% higher than the national average.
In contrast, average prices in London are £534,000, although affordability in the capital has gradually improved over the past seven years according to Zoopla.
While house price growth has decelerated across the rest of the UK over the past year, regions where prices are at or below the average have generally avoided declines.
