Zoopla: Serious sellers needed as house price growth dips
Home sellers and estate agents are being urged to price homes realistically as a glut of supply continues to push down house price growth.
Zoopla’s latest House Price Index shows sales activity continues to run at the fastest rate for four years, with more homes for sale meaning more buyers looking to secure a sale
The level of sales agreed is up 6% annually, according to Zoopla.
Pricing remains key though, with the average time to sell at 45 days but 22% of listings have been on the market for more than six months and remain unsold, while just under a quarter have been on the market for three to six months.
The average time on the market for an unsold home is 75 days, Zoopla said.
But this extra choice has contributed to a dip in house price growth.
UK house price inflation has slowed to 1.4%, down from 2% earlier this year with home values falling in parts of London and southern England. The average UK house price is £268,400, which is still £3,960 higher than a year ago, according to the index.
Affordability is also a drag on prices growth in higher priced markets, with modest house price falls of 0.2% in markets with values above £500,000.
That is particularly hitting London and the South East, accounting for 8% of UK homes.
Prices are more than one per cent lower over the past year in the West Central London (WC, -4.3%) and West London (W, -1.35) postal areas alongside Torquay (TQ, -1.7%) and Truro (TR, -1.3%) in the South West.
In contrast, house prices are 2.7% higher in more affordable markets with average house prices below £200,000, and 1.9% higher in markets priced between £200,000 and £250,000. Together, these markets cover 50% of homes.
House price growth is currently fastest, at more than 3.5% per year in parts of the North West of England and Scotland.
Commenting on the report, Richard Donnell, executive director at Zoopla, said:
“The number of buyers and sellers agreeing home sales continues to increase year-on-year, demonstrating a continued desire of more households to move home in 2025. Improving mortgage affordability will support buying power in the second half of the year.
“However, buyers remain price-sensitive, especially in higher-value markets where the number of homes for sale has grown the most in the last year, boosting choice for home buyers. Serious sellers need to be realistic on where they set their asking price in order to achieve a sale and secure a home move in 2025.”
Donnell predicts that the market remains on track for 5% more sales in 2025 but said house price inflation will remain between 1% and 2%
Tom Bill, head of UK residential research at Knight Frank, said:
“The current supply glut has put downwards pressure on asking prices, which sellers must take into account if they need to transact sooner rather than later.
“Geopolitical and tariff risks appear to be fading, which points to a smoother ride for the housing market in the second half of the year, which should be boosted by at least two rate cuts. However, the government’s non-existent financial headroom means tax rise speculation is likely to intensify ahead of the autumn Budget in a re-run of last year.”
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