According to Zoopla’s property market index, sellers are showing ‘renewed confidence’ as they return to the market. The report reveals that the supply of homes for sale in the UK has reached its highest point in eight years, with a 20 percent increase compared to last year. There is an estimated £230 billion worth of housing for sale across the four countries.
Richard Donnell, Executive Director at Zoopla, commented on the report, stating that the growth in supply indicates increased confidence among homeowners. The number of house sales agreed has risen by 13 percent from last year, with supply growing even faster, providing more options for home buyers.
The average real estate agent now has 31 homes for sale, according to Zoopla’s property market index. The analysis also shows that existing homeowners delayed moving decisions in the second half of last year due to uncertainty about the impact of higher borrowing costs on house prices and buyer demand. While most homes for sale are new to the market, around a third of currently listed homes were listed in 2023 but remained unsold.
Mr. Donnell expects that the greater supply of homes for sale will likely keep UK house prices flat throughout 2024. He emphasized the importance of pricing homes realistically for those looking to sell and achieve a sale.
Consumer sentiment in the UK has improved in recent months, with inflation dropping to its lowest point in two and a half years. The report indicates that a rising supply will help keep house price inflation in check, with the annual UK house price remaining slightly negative at -0.1 percent. Despite a slight increase in house price inflation over the last quarter, the trend has shown signs of slowing down in the past month.
Tom Bill, head of UK residential research at Knight Frank, highlighted that growing supply is expected to limit house price growth to low single digits this year. He also mentioned that high services inflation is keeping mortgage rates elevated, posing a challenge for buyers.
The report from Zoopla also noted the upcoming general election on July 4th, which could introduce uncertainty and stall the market. However, the impact of the election on the market is expected to be minimal, given the lack of significant policy differences between the main parties.
In conclusion, the housing market in the UK is showing signs of resilience despite affordability pressures. Consumer confidence has improved, supported by wage gains and lower inflation. The average house price has risen, and the annual rate of house price growth has more than doubled. The market is expected to remain stable, with potential interest rate cuts by the Bank of England and easing inflation contributing to a positive outlook for buyers and sellers alike. Please rewrite the following statement for me.
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