The property portal said that buyers are being ‘enticed by some attractive mortgage deals and the ability to borrow up to 20 per cent more.’ That’s due to some lenders relaxing their affordability criteria, boosting borrowing power.
However, the increased market activity not resulting in faster price rises, which average 1.6% over the last year, said Zoopla. The average price is now £268,250, an increase of £4,330 over 12 months.
Homes are currently selling for an average of £16,000 below asking price, making it particularly important for home sellers to price their homes realistically.
This is due to an increased number of homes for sale, with 13% more homes on the market than a year ago, meaning it’s a buyer’s market.
Regional split
House price growth varies widely at a city level, from small price falls in Aberdeen at -1.4%, Brighton at -0.4% and Bournemouth at -0.4%, to prices increasing by in Blackburn by 5.8% and Belfast at 6.1%.
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The strongest price gains are being registered in towns and cities across the North West as employment growth boosts demand and house prices.
Higher home values and rents in large cities like Manchester and Liverpool, where prices have increased by 2.5% and 3% respectively, are pushing demand into adjacent and accessible areas, boosting house prices. In addition to Blackburn, home values are rising fast in other North West towns, including Wigan (4.4%) and Birkenhead (4.1%).
The increased number of homes for sale in southern England is significantly boosting buyer choice and, in turn, keeping price growth in check at less than 1% across all regions of southern England, from 0.5% in the South East to 0.9% in the South West.
Richard Donnell, executive director at Zoopla, provides an outlook on the market: “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.
“Sellers and buyers need to adopt different tactics based on where they live across the UK; however, all sellers need to keep their feet on the ground and be realistic on pricing expectations.
“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.”
