According to survey data released by Zoopla, the number of UK homes up for sale is at an 8-year high, with £230bn worth of houses currently in the market, which could see house prices remain in check for the remainder of the year.
The supply of homes for sales is 20% higher than this time last year (an increase of £45bn), with the average estate agent overseeing the sale of 31 homes.
Richard Donnell, Executive Director at Zoopla, said: “The growth in the supply of homes for sale is evidence of renewed confidence amongst homeowners, some of whom delayed moving decisions in 2023. The quarterly rate of house price inflation has picked up in recent months as more sales are agreed and prices firm.”
There has been a 13% year on year increase in agreed sales, and while the majority of homes available for sale are new to the market, approximately 31% of homes were made available in 2023.
A rebound in the number of three and four + bedroom homes has been cited as one of the causes, with existing owners gaining confidence and returning to the market after mortgage rises affected demand.
There are currently 392,000 homes in the sale pipeline working towards completion in 2024, so it is not expected that the snap general election in early July will hit the property market.
Donnell also said that: “An increase in fall-throughs is unlikely due to the election announcement as there is not a huge divide in policy between the two main parties.
The announcement of the election will slow the pace at which new sales are agreed while greater choice for buyers will keep house prices in check over 2024. It's essential that those serious about moving in 2024 price their homes realistically if they want to achieve a sale.”
Guy Gittins, Chief Executive of Foxtons, is also confident that house sales will not be hurt by the general election, saying:
“Despite last week’s announcement of a general election, we’ve not seen a dampening of sentiment from buyers and sellers; in fact, last week we saw more sales than we have done at any point during the same period in the past six years," he said.
"The prospect of a change in government hasn’t deterred new buyers from entering the market either, last week we also had a record number of new applicant enquiries compared with the past five years. As buyers and sellers await the next interest rate decision, they should take some confidence from the fact that homeowners and prospective buyers are acting with confidence, despite the uncertainty of the election ahead.”
However, it is anticipated that the pace is likely to slow over the next 5-6 weeks, which could see the total number of sales for 2024 fall below 1.1 million.
Zoopla’s survey also reveals that sales agreed have grown 22% across the North East but are up by just 1% in Wales.
