The UK’s housing market currently boasts a staggering £230 billion ($293 billion) worth of properties for sale, marking the highest supply of homes in eight years. This surge in availability is anticipated to stabilize house prices throughout the remainder of 2024.
According to data from Zoopla, the supply of homes for sale has increased by 20% compared to this time last year, representing a £45 billion rise. Estate agents are now managing an average of 31 homes each, the highest level of supply seen in almost a decade.
“The growth in the supply of homes for sale is evidence of renewed confidence amongst homeowners, some of whom delayed moving decisions in 2023. The quarterly rate of house price inflation has picked up in recent months as more sales are agreed and prices firm,” said Richard Donnell, executive director at Zoopla.
Sales agreements have surged by 13% year-on-year, with many properties entering the market for the first time. Notably, about a third (31%) of the homes currently for sale were initially listed in 2023.
The increase in supply is largely driven by a rebound in listings of three and four-bedroom homes. Existing owners are returning to the market with greater confidence following a period of subdued demand caused by rising mortgage rates.
Despite an impending snap general election in early July, the property market is expected to remain resilient. Currently, there are 392,000 homes in the sales pipeline, set to complete over the course of 2024.
An uptick in transaction fall-throughs due to the election announcement is unlikely, as there is minimal policy divergence between the two main political parties, according to Zoopla.
“The announcement of the election will slow the pace at which new sales are agreed while greater choice for buyers will keep house prices in check over 2024. It’s essential that those serious about moving in 2024 price their homes realistically if they want to achieve a sale,” Donnell added.
However, the pace of sales agreements is expected to decelerate in the coming weeks, potentially reducing the total number of sales for 2024 below 1.1 million.
Regionally, house prices are declining in the South of England, particularly in coastal cities and areas where prices surged during the pandemic’s “race for space.” Conversely, cities with below-average house prices are witnessing price increases, as the impact of higher mortgage rates is less severe in these areas.