Residential property prices are rising slowly, up by just 1% over the last 12 months, compared to a fall of 0.9% a year ago, according to Zoopla.
The property portal says price inflation is being held back by a large choice of homes for sale and affordability pressures which are keeping buying power in check.
Overall, the total value of residential properties in the sales pipeline has hit a four-year high.
New data from the property porta shows that the total value of homes in the sales pipeline is up 30% year-on-year to £113bn, with first-time buyers on track to be largest buyer group at 36% of sales in 2024.
The pipeline of property sales agreed hits a four-year high – London Wallet
Property industry reactions:
Nathan Emerson, CEO of Propertymark, commented: “We have seen an encouraging transformation across the year in terms of a resilient trend of house price growth. Affordability and overall confidence in the sector have also seen a boost throughout the year so far.
“Considering the UK government has an ambitious aim to deliver growth following what has been a turbulent few years, we hope that this week’s Autumn Budget will be used as a springboard to improve housing supply. Propertymark has long argued that Stamp Duty reform is one way to do that, especially for those wishing to downsize.
“When the Bank of England’s Monetary Policy Committee meet on Thursday next week, we hope to see further progression on potentially cutting interest rates as this will continue to improve the overall health of the economy.”
Chris McLaughlin, director at Ocean Estate Agents, said: “The housing market is experiencing significant variation across districts and price bands. In some areas volume has grown by over 50% but on average year-on-year growth has reached approximately 30%, largely driven by lower interest rates, which have spurred a resurgence of first-time buyers. Furthermore, many sellers, who had transitioned to rental accommodation during the period of higher interest rates, are now re-entering the market, often mortgage-free or with substantial deposits.
“Buy-to-let activity has notably declined as smaller or accidental landlords exit the market, influenced by less favourable financial conditions and increasing regulation. Consequently, much of the new housing stock now comprises former rental properties. Additionally, transaction completions have risen in the last couple of months, particularly within the investment property sector, as sellers seek to conclude deals ahead of potential changes anticipated in the upcoming budget.”
Matt Thompson, head of sales at Chestertons, added: “The property market has been extremely active this year and we currently have 17% more properties under offer than in 2020. Pent-up demand, improved mortgage deals and people’s desire to find a property ahead of the Autumn Budget have been key motivators for house hunters to finalise their search.”
The pipeline of property sales agreed hits a four-year high
