Sales volumes boom despite interest rates soaring - new Zoopla figures

UK house prices may be broadly static but sales volumes are up 12% year on year according to Zoopla data out this morning.

House price inflation is unchanged from last month - down 0.2% on average across the country - as higher mortgage rates continue to impact buying power and drag on price growth.

But the portal insists that the market is on track for 1.1m sales in 2024, up 10% on last year.

The squeeze on housing affordability from higher mortgage rates, lower income growth and rising living costs is keeping house prices in check across southern England. 

Analysis of Zoopla’s local authority house price indices reveals that 64% of all homes are in markets still registering annual price falls. 

This is lower than the 82% recorded last October with the scale of these price falls being relatively modest - in most cases between 0% and -3%.

The coverage of homes in markets with price falls is greatest across southern England where almost 100% of homes are now in local markets with annual price falls. The East Midlands also has a high proportion of markets with price falls at 93%.

Across the rest of Britain there are signs of improvement in pricing, with a decline in the proportion of homes in local markets with annual price falls across six regions.  

Scotland has pockets of lower prices but at a national level, prices haven’t fallen year on year. As the UK’s most affordable region with an average price of £142,000, the North East now has no areas with annual price falls. 

Richard Donnell, Executive Director at Zoopla says: “The rebound in sales being agreed continues for a fourth month as mortgage rates have fallen, consumer confidence improves and home buyers have much greater choice of homes for sale.  The pipeline of sales is growing and we expect 100,000 more people to move home in 2024 than last year. 

“There is clear evidence that house prices are firming and the pace of price falls is slowing. We don't believe that prices will start to rise as buyers face much higher mortgage repayments than in the recent past. 

“The market is adjusting to higher borrowing costs and what we need is continued price stability which will create the environment for continued growth in sales and home moves. It’s important sellers remain realistic on what they can achieve for their home. ”