Double-digit growth in sales market activity

Home buyers are benefitting from the lowest average mortgage rates for 15 months, which is supporting double-digit growth in all key measures of sales market activity says Zoopla in its latest housing market report. Nationally, home buyer demand is 26% higher than a year ago and there are more buyers in the market as a result of more homes for sale as many sellers are also buyers looking for a new home. UK house price inflation is positive but remains below 1%.

Rising sales volumes and modest house price inflation are positive for the housing market says Zoopla. There are sufficient levels of market activity to keep drawing in new buyers who are prepared to make sensible offers on competitively priced homes. Sellers remain keen to get the best price for their home to unlock their next move, but buyers remain price-sensitive and have a greater choice of homes to buy.

While sales prices have firmed, Zoopla found that almost 2 in 5 sales (37%) are agreed at more than 5% below the initial asking price. It highlights how a high proportion of buyers continue to make offers below the asking price. This proportion has improved from a year ago but is at a level suggesting that low, single-digit house price growth lies ahead.