That’s according to Zoopla, which noted that house prices are still up by around £4,750 over the last 12 months, reaching an average of £267,500 in February.
But the property portal predicted that growth in prices could slow further in the coming months, as the growth in the number of homes for sale outpaces the increase in the number of sales being agreed.
Zoopla said there are 11% more homes for sale compared to this time last year, while sales agreed are just 5% higher, strengthening the buyers’ market. The average estate agent has more homes for sale too, at around 33 compared to 29 last year.
Supply set to rise
The number of homes on the market for sale is set to rise even further as we enter the ‘spring selling’ period, said Zoopla, which will boost buyer choice. Around 30% of all homes listed for sale in a year are put on the market from March to May.
The increase in stamp duty from April will also impact how much buyers are willing and able to pay.
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Richard Donnell, executive director at Zoopla, said: “We expect the growth in sales agreed to continue rising at a steady pace over 2025 as more sellers, most of whom are also buyers, enter the market in the coming months. House price growth is set to moderate further as supply grows and the extra costs of stamp duty in England feed through into house prices.
“A slowing in house price growth is not a major concern although the market needs some growth in prices to encourage sellers to come to market and buyers to make realistic offers on homes for sale.
“There is plenty of demand for homes but also lots of choice. Households looking to sell their home in 2025 need to be careful when setting their asking prices if they are to attract sufficient demand to agree a sale. It’s important to seek the advice of local estate agents to inform the most suitable pricing strategy for every home.”
Regional split
Zoopla has also spotted different trends in supply and demand between southern England and the rest of the country. Buyer demand in southern England is higher than a year ago, but it is failing to keep pace with the increase in homes for sale. This explains why house price growth is low across southern England, running at +1% or lower across London, the South East, South West and Eastern regions.
This compares to price growth of 3% in the North West of England and 2.5% in Scotland, where lower house prices mean better affordability for home buyers and greater potential for house prices to increase at a faster rate.
