New Data From Zoopla On The UK Housing Market
After what felt like a rather tumultuous period for many homeowners and potential buyers, the UK housing market has shown remarkable resilience, with significant improvements seen across the board in the first quarter of 2024, according to Zoopla’s latest House Price Index. The newly released report paints a promising picture of heightened sales activity, robust house price growth, and an encouraging surge in the supply of homes for sale. In this blog we will examine some of the data released in the Zoopla housing market report today.
Zoopla Housing Market Update
Newly released data indicates that sales activity surged by 9% compared to the same period in 2023, with a notable 7% increase in home sales agreed over the first quarter of 2024 compared to Q1 2023. This surge in activity seems to have been a bit of a catalyst for more sellers to enter the market, with a surprising 20% increase in homes listed for sale compared to this time last year.
The positive trend in sales activity was particularly obvious in regions with more affordable housing options. Areas such as Yorkshire and The Humber where properties are much more affordable than areas like London witnessed an 11% increase in sales, with the average house price standing at a modest £185,600. Similarly, the North West experienced a 13% surge in sales, with an average house price of £194,500.
Increase In New Sellers Listing Homes
According to the report, there has also been a substantial increase in new sellers listing homes, notably in the South West (+28%) and North East (+26%). This surge in listings reflects growing confidence among homeowners in the buoyancy of the market and also in mortgage products and rates remaining fairly stable so far.
Louis Mason, Content and Communications Director at Oportfolio Mortgages, commented on the recent findings: “The latest data from Zoopla’s House Price Index really highlights to me the remarkable resilience and vitality of the UK housing market. The significant increase in sales activity, coupled with a surge in listings, reflects a renewed sense of confidence among buyers and sellers alike. Since the beginning of the year we have spoken to a lot of first-time buyers looking for a mortgage, and after speaking to some local South West London estate agents, it seems they have too!”
The Asking Price/Agreed Price Gap Is Closing
One particularly encouraging sign of market recovery is the narrowing of the gap between asking price and agreed purchase price. The data from Zoopla reveals that the average discount from asking price to agreed purchase price has decreased from 4.5% in November to 3.9% in March 2024 – the lowest level since July 2023.
“This narrowing in the discount signifies a return to pre-pandemic norms and is indicative of a healthier, more balanced market,” says Mason. “Buyers are increasingly willing to meet asking prices, signalling strong demand and a more competitive landscape.”
The data also highlights a significant reduction in the average discount, equating to a £10,000 decrease compared to November’s £14,250 discount. This narrowing gap is a positive indicator for both buyers and sellers, suggesting a more equitable negotiation process and a strengthening market landscape.
Speak To A Mortgage Broker
As the housing market continues to show signs of recovery and resilience, all eyes remain on the trajectory of these trends in the coming months. With ongoing economic stability and favourable market conditions, the outlook for the UK housing market in 2024 appears increasingly optimistic.
As mortgage brokers, we are always on top of the latest market news and trends so that we can offer the most up to date guidance to all of our clients. If you are looking to purchase or remortgage a property in 2024, please feel free to give our team a call today.
