According to data from Zoopla’s latest House Price index, the UK housing market is set for a positive second half of the year.
Over the past 12 months, house prices have increased by just 0.1%, although house prices across al regions of the UK have increased in the first half of 2024.
Zoopla expects to see a continued rise for UK house prices over the second half of 2024, anticipating a rise of around 2% by the close of the year.
There is also an increased number of homes available for sale, which is higher than at any point in the previous six years.
And with the more sellers on the market, this will lead to more buyers – including those who are looking to upsize.
The number of sales agreed is up 16% compared to a year ago, which covers all regions and countries in the UK. Sales agreed are now 22% above pre-pandemic levels.
Buyers in the UK are also currently paying 96.8% of the asking price – the highest figure for 18 months.
Commenting on the latest report Zoopla executive director Richard Donnell said: “The housing market is starting to hot up after a stone cold 2023. There are clear signs of growing confidence amongst buyers and sellers with many more homes for sale and buyers paying an increased proportion of the asking price. We expect to see more sales but house price inflation will be kept in check by more supply and affordability pressures keeping a lid on buying power, especially across southern England.”
He added: “The housing market is essentially an extension of the UK economy. Government policies focused on economic growth that feeds into income growth will help support both home buyers and renters. The Bank of England will have more impact on the market in the short term and much depends on the timing of the first base rate cut.”
Propertymark chief executive Nathan Emerson commented: “It is fantastic to see further positivity and confidence returning to the housing market, and now that the general election is out of the way and we have a promise of 1.5m new homes across the next parliamentary term, we should start to see even more confidence and affordability across the sector.”
Emerson added that it was vital that the new UK Government takes supply issues seriously, as this would help stabilise house prices in the long-term. He is also keen to see a: “Connected communities’ approach applied with the supply of new homes and one that delivers the right homes in the right areas at the right time, while paying extreme attention to ensuring available land is utilised ahead of any move on greenbelt areas.”
