Zoopla: UK sales market at highest level since 2020
Property sales market activity running at the highest level since the 2020 boom during the pandemic, Zoopla data suggests.
The portal’s latest House Price Index for October shows the pipeline of sales agreed working through to completion is the largest for four years and 30% higher annually.
The total value of these homes £130bn, Zoopla said.
Zoopla suggests that lower mortgage rates and rising incomes are boosting the market.
Buyer demand is up 22% annually, while new supply and total stock are up 13% and 11% respectively, according to the report.
In contrast, house prices are up just 1% annually to £267,500, compared with a 0.9% decline during the same period last year.
Zoopla said house price growth is being held back by a large choice of homes for sale and affordability pressures which are keeping buying power in check.
In more affordable areas, house prices are rising at an above-average rate for example the North-East (2%), Yorkshire & Humberside (2%), North West (2.3%), Scotland (2.4 per cent) and Northern Ireland (5.6%). Conversely, house prices are down slightly in Eastern England by 0.3% and by 0.1% in the South-East.
UK house prices remain on track to be 2% higher over 2024 as price falls from this time last year drop out of the annual rate of price inflation, Zoopla said.
The report said first-time buyers are the largest buyer group so far in 2024, representing 36% of sales.
First-time buyer numbers are supported by landlords selling homes, as in these instances the average asking price tends to be lower.
Zoopla said 12% of homes listed for sale were previously rented, with an above average concentration of landlord sales taking place in London. The average asking price of a formerly rented home is £307,000, which is 16% lower than the average UK asking price of £365,000.
However, first-time buyers could be hit next year if the Government goes ahead with reducing the Stamp Duty exemption, Zoopla warns.
Currently, the property website estimates that 80% of first-time buyers pay no Stamp duty, with 14% paying a partial amount.
The impact of a return to previous thresholds would be more keenly felt in southern England where the average first-time buyer in London and the South East would pay £5,600 and £1,390 respectively, compared to nothing today, Zoopla said.
Richard Donnell, executive director at Zoopla, said:
“It is positive to see the sustained increase in sales activity over 2024 which reflects growing confidence amongst buyers and sellers supported by lower borrowing costs and rising incomes.
“Overall, the market remains on track for a modest 2% price increase in 2024 and 1.1m sales.
“First-time buyer numbers have recovered as mortgage rates have fallen but a sizeable deposit is still required to buy.
“Possible changes to stamp duty relief will only create further barriers to ownership for this group who already face significant affordability constraints.
“The housing market doesn’t need short term policy tweaks from the Budget.
“The health of the housing market and people’s ability to afford housing is linked to the health of the economy.
“It’s vital the Budget is focused on economic growth and expansion in jobs and rising incomes.
“The primary focus should be on providing the financial support and investment needed to help build the homes the nation needs for buyers and renters.”
Commenting on the report, Nathan Emerson, chief executive of Propertymark, said:
“We have seen an encouraging transformation across the year in terms of a resilient trend of house price growth.
“Affordability and overall confidence in the sector have also seen a boost throughout the year so far.
“Considering the UK Government has an ambitious aim to deliver growth following what has been a turbulent few years, we hope that this week’s Autumn Budget will be used as a springboard to improve housing supply.
“Propertymark has long argued that Stamp Duty reform is one way to do that, especially for those wishing to downsize.
“When the Bank of England’s Monetary Policy Committee meet on Thursday next week, we hope to see further progression on potentially cutting interest rates as this will continue to improve the overall health of the economy.”
Kindly shared by Estate Agent Today
