In a notable upswing, buyer demand has witnessed an 11% surge this month in comparison to February of the previous year, according to the latest analysis by Zoopla. The driving forces behind this boost are identified as declining mortgage rates and a release of pent-up activity within the market.
Zoopla’s examination, based on the number of prospective buyers reaching out to agents regarding properties listed on their platform, indicates a nationwide uptick in demand. The most substantial increases were observed in London, followed closely by the North East and North West regions.
The report highlights the prolonged challenge of affordability in the capital, which has resulted in the housing market trailing behind the rest of the UK for the past seven years. Zoopla’s data reveals a modest 13% increase in the average value of a flat in London since 2016, compared to a more robust 33% across the entire UK and an impressive 50% in Wales during the same period.
Despite this disparity, Zoopla points to a positive trend in the form of a noteworthy rise in the number of agreed-upon sales – up by over a fifth compared to the same period last year. This is interpreted as a positive indicator of the overall improvement in the health of the broader UK housing market.
The surge in sales agreements is evident across all regions and countries of the UK, with at least a 10% increase in six regions, including London, the South East, and Yorkshire and Humber.
In a further positive development for market competitiveness, the average duration from listing a property to reaching an agreement for a sale, subject to contract, has marginally decreased from 34 days last year to the current average of 33 days. This reduction is seen as a favourable sign, indicating increased efficiency and potentially fostering a more dynamic real estate environment.