Number of UK homes for sale at 8-year high - Zoopla

30th May 2024 08:56

(Sharecast News) - The number of homes coming to market has soared, industry research showed on Thursday, as the recovery in the UK housing market continued to gain pace.

According to the latest Zoopla UK house price index, the average estate agent had 31 homes for sale in April, up 20% year-on-year and the highest amount in eight years.

The number of agreed sales was also higher, up 13% year-on-year.

The greater number of homes coming to market meant annual house price inflation was largely flat, however, at 0.1%.

The average house price in the UK is now £264,300.

Richard Donnell, executive director, research, at Zoopla, said: "There is a record high supply of homes for sale, which shows renewed confidence among sellers, many of whom are also buyers."

But he warned: "Greater choice will keep prices in check over 2024. The general election is likely to dampen the number of sales agreed in the run up to summer."

Zoopla noted that elections traditionally meant "increased uncertainty and some stalling in market activity".

It continued: "Overall, we don't see the election having as big an impact as in previous years, as there is not a huge divide in policy between the two main parties.

"There are also few specifics on housing, other than a focus on reforming the private rental sector and boosting housing supply.

"However, sales completions over 2024 may now fall slightly short of the 1.1m we expected for 2024."

The UK housing market was hit hard by the disastrous mini budget of 2022, which sent mortgage rates soaring.

Although mortgage rates have moderated in recent months, the cost of living crisis, the high cost of borrowing and a supply squeeze have continued to weigh on the market.

With inflation now close to 2% again, however, the Bank of England is widely expected to start cutting interest rates later this summer.

The general election will be held on 4 July.