UK home worth inflation has slowed to 1.4%, led by falling values in London and the South, Zoopla’s home worth index has revealed.
This represents a discount from 2% earlier this 12 months, with common costs standing at £268,400.
Tom Invoice, head of UK residential analysis at Knight Frank, mentioned: “The present provide glut has put downwards strain on asking costs, which sellers should bear in mind if they should transact sooner reasonably than later.
“Geopolitical and tariff dangers look like fading, which factors to a smoother journey for the housing market within the second half of the 12 months, which ought to be boosted by not less than two fee cuts.
“Nevertheless, the federal government’s non-existent monetary headroom means tax rise hypothesis is more likely to intensify forward of the autumn Funds in a re-run of final 12 months.”
The common property agent has 37 houses on the market, in comparison with 32 final 12 months.
In London, the South East and South West areas of England the variety of houses on the market is 16-19% increased than a 12 months in the past, whereas home costs are barely rising, with underneath 0.5% development over the previous 12 months.
Home worth development is at the moment quickest, at over 3.5% every year, in components of the North West of England and Scotland together with Wigan (4.3%), Falkirk (3.8%) and Blackburn (3.6%) postal areas.
Along with affordability components, tax and coverage modifications aimed toward second householders and landlords are resulting in weaker demand and extra gross sales by these house owners, which is compounding the impression on home worth development at a localised stage.
In the meantime there’s a 6% improve in gross sales agreed in comparison with a 12 months in the past.
Richard Donnell, govt director at Zoopla, mentioned “The variety of consumers and sellers agreeing dwelling gross sales continues to extend year-on-year, demonstrating a continued want of extra households to maneuver dwelling in 2025. Bettering mortgage affordability will help shopping for energy within the second half of the 12 months.
“Nevertheless, consumers stay price-sensitive, particularly in higher-value markets the place the variety of houses on the market has grown essentially the most within the final 12 months, boosting selection for dwelling consumers. Critical sellers should be reasonable on the place they set their asking worth as a way to obtain a sale and safe a house transfer in 2025.
“The market stays on monitor for five% extra gross sales in 2025 however home worth inflation will stay between 1 and a couple of%.”
Sellers should be reasonable on pricing if they’re severe about discovering a purchaser and transferring dwelling in 2025.
The common time to promote is 45 days, broadly in keeping with this time final 12 months. This ranges from 35 days within the North East to 57 days in Wales, whereas all of the southern areas within the UK common over 50 days because of a better selection of houses on the market.
Over one in 5 houses (22%) at the moment listed on the market have been available on the market for over six months and stay unsold, whereas slightly below 1 / 4 (23%) have been available on the market for 3 to 6 months and are but to discover a purchaser. The common time available on the market for an unsold house is 75 days.
Sarah Cartlidge, department supervisor at Fraser Reeves property agent primarily based within the North West, mentioned: “We’re delighted to be seeing elevated vendor confidence this 12 months, with extra properties approaching to the market than 2024, nonetheless, property worth stays key to agreeing a sale.
“We’re at all times eager to emphasize to potential distributors that they do want to cost positively and realistically from the get-go, as a way to safe purchaser in good time, and to make the most effective first impression doable when their property hits the market.
“We all know that any property can promote for the appropriate worth, bearing in mind the native competitors and the actual traits of every particular person dwelling.”
