The number of British properties up for sale has hit its highest level in seven years and buyer demand is rising as a recovering economy boosts consumer confidence, according to Zoopla.
The property website said each estate agent had an average of 33 properties on their books in the four weeks to Aug 18, up 14 per cent from a year earlier. It predicted that growing supply will lift sales in 2024, in a boon for realtors, but also keep prices in check – good news for those struggling to get onto the housing ladder.
The findings suggest sellers are growing more confident about being able to shift their property after a spike in mortgage costs in 2023 squeezed affordability. Now the cost of borrowing is easing, living standards are rising, and the economy appears set for steady growth after outpacing its Group of Seven peers so far in 2024.
The end of election uncertainty with Labour’s win on July 4 and the Bank of England’s first interest rate cut in more than four years, with the prospect of more reductions to follow, are expected to support the market in the coming months, industry experts say.
Other property market indicators have also pointed to an upturn. Halifax’s indicator showed prices in July rising by the most since January, while rival mortgage lender Nationwide Building Society also reported gains in July.
However, Zoopla warned sellers not to “get ahead of themselves” when it comes to setting prices. Buyers have less purchasing power than they did two or three years ago, and many are still demanding hefty discounts, it said.
One in five homes for sale in August had seen their asking price reduced by 5 per cent or more, a higher than average share.
“Market conditions continue to improve as the outlook improves, but buyers remain price sensitive,” said Mr Richard Donnell, Zoopla’s executive director for research. “Rising disposable incomes are as important as mortgage rates for the future health of the sales market.”
Zoopla said that house prices were up 0.5 per cent on a year earlier, with some regions including the south-east and east of England reporting declines. Prices in London have risen by just 0.2 per cent year on year. BLOOMBERG
