The UK housing market is enjoying its strongest spell of activity since the pandemic-era “race for space,” with estate agents reporting a surge in buyer interest and sales agreed reaching a four-year high, according to new data from property portal Zoopla.
Sales activity is up 6 per cent compared with this time last year, buoyed by improved mortgage rates, better availability of homes, and renewed buyer confidence. The revival is most pronounced in the north of England and Scotland, where estate agents are seeing heightened demand after years of subdued activity.
After a brief pause in April, blamed on the Easter holidays and a hike in stamp duty, the market rebounded strongly in May. Mortgage affordability has improved thanks to falling rates and easing lending criteria, while the supply of homes on the market is 13 per cent higher than a year ago.
“More homes for sale means more buyers looking to move home,” said Richard Donnell, executive director at Zoopla. “This, coupled with more attractive mortgage deals and changes to how lenders assess affordability, is supporting an increase in the number of sales being agreed.”
Sellers are also becoming more realistic, with homes selling for around 3 per cent below their initial asking price. Despite increased activity, price growth remains modest. The average UK house price has edged up by 1.6 per cent over the past year to £268,250.
Regional disparities persist. Prices in cities like Aberdeen, Bournemouth and Brighton have dipped slightly, while northern areas such as Blackburn and Belfast have seen rises of more than 5 per cent. A glut of properties in the south is keeping a lid on price growth there, with the southwest seeing a 21 per cent increase in listings, followed by 17 per cent in London and 15 per cent in the southeast. By contrast, listings in the northwest have risen by just 3 per cent.
Zoopla forecasts a 2 per cent increase in UK house prices by the end of 2025, with total sales volumes expected to rise by 5 per cent year on year.
As Donnell noted, “We expect momentum to build through the rest of the year. The mix of improved affordability, stronger mortgage product offerings, and sellers who are also keen to buy, is creating the healthiest market we’ve seen since the pandemic boom.”
Read more:
UK house sales hit four-year high as market momentum builds in May