Agency stock hits eight-year high but many are relisted homes - Zoopla

Property supply has hit its highest level for eight years, Zoopla data shows.

The latest Zoopla House Price Index shows the average estate agent has 31 homes for sale.

The research suggests that as of 19 May, the level of property stock for sale is up 20% annually and 25% higher in value terms.

However, almost a third of the stock is from agents and sellers relisting their property.

Two-fifths of these homes that had been on the market in 2023 have had their asking price cut by more than 5% to attract demand, Zoopla said.

The South West of England has recorded a 33% increase in homes for sale compared to last year, with an above-average increase in the expansion in four-bed homes, the research shows.

This is attributed to holiday home owners selling up ahead of tax changes for furnished holiday lets and the prospect of double council tax for second homes.

Meanwhile, sales agreed are also running 13% higher than this time last year, according to the index

There are regional variations though. The level of sales agreed have grown 22% across the North East but are up by just 1% in Wales.

Zoopla’s latest index found that prices fell 0.1% annually in April 2024 to £264,300 and it expects average values to remain flat over the year.

Richard Donnell, executive director at Zoopla, said: “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. “

“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.”

Commenting on the report, Tom Bill, head of UK residential research at Knight Frank, said: “Growing supply is one reason that UK house price growth this year will be limited to low single digits.

“However, the main obstacle for buyers is stubborn services inflation, which is keeping mortgage rates high.

“Asking prices therefore need to reflect the fact that buyers have more choice and tighter budgets. General elections don’t tend to impact mainstream property markets and if anyone is attempting to guess what happens next to house prices, I would suggest looking closely at the next inflation data rather than the manifestos.”

Nathan Emerson, chief executive of agency trade body Propertymark, added: “It’s extremely positive to see such a sizable uplift in the market across the last twelve months. However, with a General Election now confirmed, until there is full clarity on the direction any new government intends to take regarding housing, we expect there to be a temporary slowing across the summer months of both people choosing to sell their property and those actively looking to buy.

“We do have the positive news that inflation is now firmly tracking downwards and would be keen to see interest rates follow. We are hopeful across the coming months that lenders will bring both competitive and targeted deals to the marketplace at the first opportunity.”