The real estate market is recovering; the increasing number of buyers and sellers led to more sales in February.
According to Zoopla, agreed house sales in London have increased by 16 percent year-on-year, more than double the UK average. Only the North East of England has a high number of sales, at 17 percent.
Zoopla’s latest house price index shows that the number of homes for sale is a fifth (21%) higher than a year ago, with buyer demand also up 11% and – crucially – sales figures 15% higher than the same period last year.
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Agreed sales jumped as buyer demand rose 11% and the number of homes for sale was 21% higher than a year ago. House prices fell 0.5% year-on-year.
The average house price in London is currently £534,600, more than double the national average of £263,600.
In the Southern England regions – which include the East, South East and South West regions outside London – the average house price is currently £344,000, 30% above the UK average.
Across the rest of the UK, house price growth has slowed sharply over the past year, but in areas with average or below-average house prices, prices have generally not fallen.
“The property market has proven to be very resilient to higher mortgage rates and cost of living pressures,” said Zoopla managing director Richard Donnell.
“More sales and more sellers show growing household confidence and are proof that mortgage rates of 4-5% are not an obstacle to improving market conditions.”
“Momentum in agreeing new sales has increased over the past five months and the sales market is on track for 1.1 million sales in 2024, supported by new sellers entering the market.
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“Although sales will increase, we do not expect home price growth to accelerate further in 2024.”
Zoopla said the 1.1 million homes it expects to sell this year are about 10% more than in 2023.
While mortgage rates are falling amid expectations that the Bank of England will cut its base rate later in the year, borrowers can still expect interest rates of between 4 and 5 percent for most of the year, Zoopla said.
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