According to the data that Zoopla has put out this week, property supply has hit its highest level for eight years.
The research suggests that as of 19 May 2024, the level of property stock for sale is up 20% annually and 25% higher in value terms. This is a combination of new homes coming to the market, and those unfortunate sellers who just missed their sale in the turbulent times we had at the end of 2023, coming back to the market for the summer months with improved marketing or amendments to meet the current price demands.
Markets in the South West of England recorded a 33% increase in homes for sale compared to last year. This is attributed to holiday home owners selling up ahead of tax changes for furnished holiday lets and the prospect of double council tax for second homes.
Meanwhile, sales agreed are also running 13% higher than this time last year, according to the index
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. “
“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.”
Commenting on the report, Tom Bill, head of UK residential research at Knight Frank, said: “Growing supply is one reason that UK house price growth this year will be limited to low single digits.
“However, the main obstacle for buyers is stubborn services inflation, which is keeping mortgage rates high.
“Asking prices therefore need to reflect the fact that buyers have more choice and tighter budgets. General elections don’t tend to impact mainstream property markets and if anyone is attempting to guess what happens next to house prices, I would suggest looking closely at the next inflation data rather than the manifestos.”
Nathan Emerson, chief executive of agency trade body Propertymark, added: “It’s extremely positive to see such a sizable uplift in the market across the last twelve months. However, with a General Election now confirmed, until there is full clarity on the direction any new government intends to take regarding housing, we expect there to be a temporary slowing across the summer months of both people choosing to sell their property and those actively looking to buy.
“We do have the positive news that inflation is now firmly tracking downwards and would be keen to see interest rates follow. We are hopeful across the coming months that lenders will bring both competitive and targeted deals to the marketplace at the first opportunity.”
*Data Taken from Reports from Estate Agents Today
