Zoopla’s latest House Price Index shows the busiest May for home sales since 2021, which the property website attributes to buyers tempted back to the market by attractive mortgage deals and an increase of up to 20% in borrowing.
The analysis reveals a 13% increase in the number of homes on the market since this time last year, with sales agreed up 6%. The fastest growing markets are outside southern England, according to Zoopla, with the strongest price gains in cities across the North West ‘as employment growth boosts demand and house prices’.
Higher home values and rents in large cities such as Manchester and Liverpool, where prices have increased by 2.5% and 3% respectively, are pushing demand into adjacent areas. Blackburn has seen an increase in home values of 5.8%, prices in nearby Wigan are up 4.4%, with Birkenhead at 4.1%.
Richard Donnell, executive director at Zoopla, commented:
“More homes for sale means more buyers looking to move home. This, coupled with more attractive mortgage deals and changes to how lenders assess affordability, is supporting an increase in the number of sales being agreed.
“There are more sales and stronger house price increases in northern regions of England and Scotland, where homes are more affordable. In southern regions of England, affordability continues to weigh on price inflation and the number of sales being agreed.”
“We expect sales to keep rising over the second half of the year, with UK home values on track to be 2% higher by the end of the year.”
Martin Bennett, owner of Crown Estates and Lettings Agents in Blackburn, said ‘business is booming’ in the North West town.
He added:
“[There is] increased demand for properties both at the lower and top end of the market. This is being reflected in house prices, with an entry-level property in Blackburn having an average asking price of approximately £75,000 compared to approximately £50,000 two years ago.
“From my experience, properties that are priced correctly are going under offer within two weeks of being listed, while it’s not uncommon to have 10+ potential buyers on the first day of viewings.”
Toby Leek, NAEA Propertymark president, said Zoopla’s report is encouraging. He commented:
“Even during a time of economic turbulence, it is encouraging to see that the housing market is the busiest it has been since May 2021, and that house price inflation remains stable. This news demonstrates that there is still an appetite for housing as inflation in general continues to impact the wider economy.”
