The latest Zoopla House Price Index has found that UK house prices could be up to 1.5% higher by the end of 2024, with higher mortgage rates finally being steadied.
The property portal’s report also highlights that buyers are not being influenced by the pending election, with new sales agreed 8% higher, whilst demand is up 6% and there are 19% more homes for sale compared to 2023.
Although the rate is slower than in recent months, the overall stock of homes in the UK continues to grow, despite agreed sales being slightly down in the West Midlands (-5%) and the North East (-6%) due to usual seasonal changes.
Zoopla data reveals that an estimated 1.1 million sales will be logged in 2024. Whilst a quarter of the sales are yet to be agreed, 75% of the sales expected to close this year are either agreed, completed or working towards a completion.
Zoopla Executive Director, Richard Donnell, said: “The housing market continues to adjust to higher borrowing costs through modest house price falls and rising incomes. Buyers using mortgages are also relying on longer mortgage terms to gain that extra few percentage points of buying power to afford a home.”
He added: “The general election campaign has had a limited impact on market activity although the seasonal summer slowdown is arriving. Sales agreed continued to increase and more homes for sale means more buyers looking to move in the second half of the year. The timing of the first cut in the base rate is a key moment and will give a boost to both market sentiment and sales activity. Overall, we expect house prices to be 1.5% higher over 2024”
Responding to the Zoopla HPI, Propertymark chief executive Nathan Emerson commented: “It’s been a positive year so far for the housing market, and it’s extremely upbeat to see confidence returning, despite some of the challenges people have faced such as high inflation and interest rates.”
He continued: “With the general election now less than a week away, we are keen to see any incoming government lay down their full plans to further support current homeowners on aspects such as energy efficiency, but also to fully get behind key groups like first-time buyers as they set out on their property journey.”
