July Zoopla House Price Index
Get the latest insights on the housing market with our overview of Zoopla’s latest House Price Index.
Get the latest insights on the housing market with our overview of Zoopla’s latest House Price Index.
Housing Market Most Balanced in 5 Years
The housing market continues to adjust to 4%+ mortgage rates with positive signs of increased activity. More sellers are listing homes for sale, more sales are being agreed, and buyers are paying a greater proportion of the asking price as confidence improves.
House Price Inflation Static, Still Negative in South
UK house prices edged 0.1% higher over the last 12 months, increasing by just £310 to £265,600. Annual price inflation ranges between -1.2% in the East of England to +3.9% in Northern Ireland. House prices have increased across all regions and countries of the UK over the first half of 2024. We expect house prices to continue to increase slowly over the second half of 2024.
Supply of Homes for Sale Continues to Grow
One important feature of the housing market at present is that there are more homes for sale than at any point in the last six years. This is improving choice for home buyers and supporting more sales. The average agent has 33 homes for sale, 16% higher than a year ago and above the longer run average of 25.
Buyers Paying a Greater % of the Asking Price
Buyers are paying a greater proportion of the asking price than they were last year when higher mortgage rates hit demand. UK buyers are currently paying 96.8% of the asking price, up from 95.4% last November. This is on par with the long-run average and points to continued house price inflation.
Outlook for H2
We expect continued modest growth in house prices, which will be greater outside the south of England where affordability is less of a constraint on price inflation. Sales remain on track for 1.1m in 2024, still 10% lower than the 20-year average. The timing of the first base rate cut is important as it will boost consumer confidence and market activity.
For more detailed insights, visit Zoopla's House Price Index.
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