All measures of sales market activity continue to improve as pent-up demand returns to the housing market, according to the February 2024 UK House Price Index by Zoopla, which added that buyer demand is 11% higher than a year ago.

However, Zoopla reported: ‘A better indicator of market health is sales agreed which are 15% higher than a year ago – evidence of greater buyer confidence and more realism on pricing by sellers. The North East (+17%) and London (+16%) have led the rebound in sales.

‘Growing confidence amongst sellers is boosting the number of homes for sale, which are 21% higher than a year ago. More supply is increasing choice for would-be buyers and supporting sales.’

While increased activity levels are welcome news, it’s important to note that a small proportion of sellers continue to reduce asking prices to attract buyer interest. Asking price reductions are lower than a year ago but remain above average, evidence of continued price sensitivity amongst buyers. Asking price reductions of 5% or more are greatest in the South East and East of England.

Rate of house price falls slow on rising sales
The average estate agent is agreeing 6 new sales a month, up from 5.2 a year ago. Zoopla says: ‘This is evidence that house prices don’t need to fall to support growing sales volumes. This is feeding through into our house price index, which continues to record a slowdown in the rate prices fall. Annual house price inflation is currently -0.5%, up from the recent low of -1.4% recorded in October 2023. The average UK house price is 1.5% below the peak of £268,000 in October 2022.’