0:01 AM, 30th May 2024, About 7 months ago 2
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The UK’s housing market is experiencing a surge in the number of homes for sale, with Zoopla reporting the highest levels in eight years.
This influx of properties is expected to dampen house price growth for the rest of the year while offering more choice for buyers.
The platform’s research highlights that while sales are increasing, they haven’t kept pace with the rise in available homes.
The firm’s executive director, Richard Donnell, said: “The growth in the supply of homes for sale is evidence of renewed confidence amongst homeowners, some of whom delayed moving decisions in 2023.
“The quarterly rate of house price inflation has picked up in recent months as more sales are agreed and prices firm.”
He added: “The announcement of the election will slow the pace at which new sales are agreed while greater choice for buyers will keep house prices in check over 2024.
“It’s essential that those serious about moving in 2024 price their homes realistically if they want to achieve a sale.”
The boom in numbers is being driven by a rebound in larger properties being put up for sale, with homeowners regaining confidence to move.
The average estate agent now holds 31 properties compared to 26 last year.
The South West has witnessed the most significant rise in properties for sale, with a third more compared to 2023.
This is probably down to changes in tax and planning rules for holiday lets, impacting a region with high second-home ownership.
Zoopla also says that the upcoming General Election will have a minimal effect on housing activity.
While the pace of agreed sales might slow, strong underlying motivations to move will likely see many continue their search in 2024.
The total number of sales for the year could fall below 1.1 million.
Also, the disparity in house price growth between northern and southern England persists.
Southern cities are experiencing modest price drops, while Belfast, Burnley and Bolton are seeing the strongest growth.
Propertymark’s chief executive, Nathan Emerson, said: “It’s extremely positive to see such a sizable uplift in the market across the last 12 months.
“However, with a General Election now confirmed, until there is full clarity on the direction any new government intends to take regarding housing, we expect there to be a temporary slowing across the summer months of both people choosing to sell their property and those actively looking to buy.
“We do have the positive news that inflation is now firmly tracking downwards and would be keen to see interest rates follow.
“We are hopeful across the coming months that lenders will bring both competitive and targeted deals to the marketplace at the first opportunity.”
Matt Thompson, the head of sales at Chestertons, said: “We have seen a clear uplift in the number of homeowners putting their property up for sale to benefit from the heightened buyer demand associated with the spring market.
“Despite the influx of sellers, demand still outweighs supply.”
He adds: “The property market will therefore continue to be competitive but as supply levels increase, some sellers may be more willing to reduce their asking price in order to secure a sale.”
Cider Drinker
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Sign Up9:49 AM, 30th May 2024, About 7 months ago
Most of those properties that are for sale will result in another person or family seeking somewhere to live. They can’t all be dying, emigrating or going into care homes.
The weather is improving. People like to move over the summer months.
Some people will be looking to buy their first home or will be hoping to move to a larger property because it looks like interest rates may dip ahead of the election.
More homes for sale doesn’t mean the housing crisis is easing. House building, death rates and immigration control would all ease the crisis.
DC
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Sign Up11:20 AM, 30th May 2024, About 7 months ago
I am currently searching for a home in the UK and I don't see any surge in properties coming to the market at all in the areas that I'm hoping to buy in. In fact, what I do see everyday, is many over priced properties being reduced or removed from the market, only for some of those to reappear weeks later at a slightly lower price.