The UK housing market is showing renewed strength as the number of sales agreed in May reached its highest level in four years, according to Zoopla. They attribute this surge to a 13% year-on-year increase in homes listed for sale and improved mortgage options. Easing mortgage affordability criteria now allow buyers to borrow 20% more than earlier this year, encouraging more transactions. Despite higher market activity, price growth remains modest. The latest house price index shows average UK property prices are just 1.6% higher than a year ago, now standing at £268,250.

Currently, the average home sells for 3% or £16,000 below the asking price, a figure that has remained consistent in recent months. Strongest price growth has been recorded in areas like Blackburn (5.8%) across the North West, driven by increased employment. In contrast, southern England is experiencing a larger supply of homes for sale, which is offering buyers more choice and keeping price rises limited to 1%.

Richard Donnell, executive director at Zoopla, explains:
“More homes for sale means more buyers looking to move home. This, coupled with more attractive mortgage deals and changes to how lenders assess affordability, is supporting an increase in the number of sales being agreed.”

“There are more sales and stronger house price increases in northern regions of England and Scotland, where homes are more affordable. In southern regions, affordability continues to weigh on price inflation and sales volumes.”

Donnell advises sellers to be realistic:
“Sellers and buyers need to adopt different tactics based on where they live across the UK; however, all sellers need to keep their feet on the ground and be realistic on pricing expectations.”

“We expect sales to keep rising over the second half of the year, with UK home values on track to be 2% higher by the end of the year.”

Toby Leek, president of Propertymark, comments:
“It’s encouraging to see the housing market at its busiest since May 2021 and stable house price inflation. This shows there’s still a strong appetite for property, even with broader economic pressures.”

Leek also highlights regional disparities:
“The North West’s popularity highlights the need for more balanced house pricing across the UK to ensure locals aren’t priced out of their communities.”

Tom Bill, head of UK residential research at Knight Frank, adds:
“Buyers are being more selective given the plentiful supply of homes. Recent stamp duty increases and economic concerns mean sellers must be realistic with asking prices to draw interest.”

Matt Thompson, head of sales at Chestertons, notes:
“Buyer activity resumed swiftly in May after the Easter lull, helped by the Bank of England’s interest rate cut to 4.25%, which attracted more first-time buyers. Sellers also remained highly motivated, resulting in a spike in agreed sales.”

According to Zoopla, homes in England and Wales are now spending an average of 36 days on the market before being sold.

Source: Becky Bellamy, Mortgage Strategy