The UK’s housing market is starting to look a lot more positive than it once did, with a notable increase in sales and buyers paying closer to asking prices, according to the latest data from property website Zoopla. The first half of 2024 has seen house prices increase across every region, setting the stage for a potential 2 per cent rise by the end of the year compared to January. I have worked in the mortgage and property industry for almost 10 years, and I have never been more confident in the potential of property investment that I am right now. We are coming off the back of COVID uncertainty, interest rate hikes, and high inflation. People have been chomping at the bit to, waiting for the opportunity to buy property. For people looking to sell, 2024 leading into 2025 is shaping up to be a great period for making a profit.
Zoopla House Price Report Reveals Interesting UK Property Data
As part of my job as Content and Communications director here at Oportfolio mortgages, I specialise in research property and mortgage trends in the UK. Whenever there is a notable shift in the UK property market, you had better believe that I will be straight on it. That is why this new data from the Zoopla house price index report is so interesting to me. Zoopla attributes this potentially positive tide change in the UK property market to a surge in the number of homes being put on the market, providing buyers with more options and more opportunity to buy the home they have dreamed of owning.
This increased availability has not led to a drop in prices. Quite the contrary really, as more sales are successfully closing. According to Zoopla, the average estate agent now has 33 homes for sale, a record high for the past six years. After speaking to local London estate agents earlier in the year myself, the common concern that they had was always the availability of stock. Many spoke to me about the perceived lack of available property on the market, and ‘unrealistic’ new home building that the previous government proposed. It is great to see that this has somewhat changed in recent months, and that all figures are pointing toward a more fruitful property market in the UK.
Property Market Boost
Going back to the data released by Zoopla, it seems that the number of sales agreed upon has climbed significantly too, up 16 per cent from a year ago and 22 per cent above pre-pandemic levels. As I have already mentioned, my research as a property expert at Oportfolio had already led me to conclude that the end of the COVID pandemic has given the property market a much needed boost. Even if it has taken a couple of years to kick into action! This resurgence in activity indicates, in my eyes, a robust market recovery. However, as always, we can’t count our chickens before they hatch.
What Does This Mean For People Looking To Buy And Sell Property?
So what do these newly released figures mean for buyers and sellers? Of course, everything is looking a lot more rosy for people looking to sell, with nice profits potentially on the horizon for millions of property owners. But it does mean that buyers will inevitably be paying more for their properties. Buyers are now paying 96.8 per cent of the asking price, the highest proportion seen in 18 months. And that is merely an average. In our industry we regularly see buyers paying over 100% of asking prices to compete against other bidders. This has become a common occurrence, and isn’t just with property purchases. Many renters are having to offer above asking price on rents too, in order to secure a property contract. This trend revealed by Zoopla clearly shows a narrowing of discounts available to buyers in 2024 and moving into 2025, with the average home selling for £16,600 below the asking price, compared to £23,000 below in October of last year.
Will Increasing House Prices Mean That Property Becomes Unaffordable?
With house prices increasing, is anyone actually going to be able to afford a property? Zoopla’s data interestingly reveals that economic factors such as growth and rising household incomes are major contributing factors to the property market’s strength. Average incomes are projected to increase by 4.5 per cent this year, with expectations that income growth will outpace house prices in 2025, further benefiting homebuyers. What does that mean to the layman? Essentially your income will go up and won’t be overshadowed by property values increasing. Meaning that properties are not getting any further out of reach for people looking to buy. But as always, you should seek professional mortgage advice if you are considering buying your first home.
Speak To A Property Expert For Your New Purchase
My years of experience in the property and mortgage industry has meant that I can predict positive shifts in the market quite accurately, and this news from Zoopla is certainly a good indicator that the market is looking up over the next 12 to 18 months. I am seeing a lot more interest and activity in the property world recently, especially from first-time buyers. Which is fantastic to see! I believe that there are some really positive things happening with property availability and mortgage interest rates that should give new buyers a lot more confidence in the market. But any property purchase can’t be a one man job. It needs to be a team effort. With a strong team behind you to fight your corner and get the best outcomes, your property purchase journey is sure to succeed.
That’s why you need the support of a specialist experienced mortgage advisors like our team at Oportfolio. If you or anyone you know is interested in purchasing a new property now or in the future, give our team a call today or drop us a message to arrange a fee free initial mortgage consultation. We are here to help.
Content and Communications Director Louis Mason has been working in the mortgage industry since 2016
