The amount of homes for sale across the country is at an eight-year high ahead of the general election, in a trend which experts say will limit house price rises for the rest of 2024.
Zoopla’s latest house price index has revealed that the UK is currently experiencing the highest supply of homes for sale since 2016, with the average estate agent having 31 homes for sale, which is up by 20 percent on this time last year.
This equates to around £230 billion-worth of homes on offer, as sellers continue returning to the housing market in growing numbers. The property site also predicts that the 4th July General Election will have less impact on the housing market than during previous election periods.
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According to Zoopla, many homeowners delayed moving in the second half of last year, as the impact of higher borrowing costs on house prices and buyer demand knocked confidence.
Just below one-third of homes for sale were also listed for sale in 2023 but failed to find a buyer. But an expected fall in mortgage rates this year, combined with rising sales volumes over the last six months, has boosted morale.
Experts think the Bank of England is likely to cut interest rates in the coming months, after headline inflation eased to 2.3 percent in the 12 months to April 2024, down from 3.2 percent in the 12 months to March.
The number of house sales agreed also rose by 13 percent since this point last year, but stayed behind the level of supply giving buyers the pick of the market.
The trend is expected to keep house price inflation in check. Zoopla’s latest index found yearly house price inflation is minus 0.1 percent, meaning prices have fallen slightly over the last 12 months.
There has been an increase in house price inflation over the last quarter, at 0.4 percent up, in response to more sales and firmer pricing, but this quarterly growth rate has slowed over the last month. The property website said it expects inflation to be flat for the year.
The north and south divide in annual house price growth continues with modest house price falls across Southern England. This split in house price inflation is most evident at a city level with the the strongest house price growth in Belfast (+3.6 percent), Burnley (+2.5 percent) and Bolton (2.4 percent).
Zoopla expects this north/south divide in house price growth to continue for the remainder of 2024 as incomes and house prices re-align across the country.
Richard Donnell, executive director at Zoopla, says: “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.”
“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.”