Asking prices have risen by 1.4% since the start of the year, but are only 0.5% higher than a year ago, according to Zoopla’s latest index.
Their latest findings shows that the average asking price in the UK increased to £266,400 in July, after starting at £263,600 in January.
There was positive price growth in eight regions and negative in four, which covered the South West, South East, East of England and East Midlands.
London saw a slight increase of 0.2% compared to last year, managing to avoid the negative trend seen in surrounding regions.
One in five sellers had to cut their asking price by 5%, which often meant that they took twice as long to sell – increasing from an average of 28 to 73 days.
Zoopla executive director Richard Donnell said: “Momentum in the sales market continues to build as mortgage rates drift lower and more and more sellers gain the confidence to list their home for sale.
“Buyers have much greater choice which will support sales numbers, but this will keep prices rises in check.
“Buyers have less purchasing power than two or three years ago and remain price-sensitive, meaning sellers can’t afford to get ahead of themselves on where to set the right price for their home.
“If you need to cut the asking price by 5% or more then your home will take twice as long to sell or may not sell at all.”
Hargreaves Lansdown head of personal finance Sarah Coles says: “There’s plenty to cheer in this data, with house prices up 1.4% since the beginning of the year, buyer demand booming and more sales being agreed.
“The Bank of England interest rate cut has boosted sentiment significantly, and helped persuade buyers that now is a decent time to get stuck in.
“It didn’t have a dramatic overnight impact on average mortgage rates, but they’ve continued drifting southwards, and the fact they have been falling for a couple of months is starting to really add up.”
Propertymark chief executive Nathan Emerson said: “There is a real positivity within the housing market now that the economy seems to have stabilised.
“This is the UK government’s chance to take advantage of current market confidence by clarifying a more precise timeframe for enacting the Planning and Infrastructure Bill as this will build the homes desperately needed in order to keep up with ever-growing demand and start to form a plan of action if the government wants to meet its target of building nearly two million new homes across the next parliamentary term.”
