UK home value inflation has slowed to 1.4%, led by falling values in London and the South, Zoopla’s home value index has revealed.
This represents a discount from 2% earlier this yr, with common costs standing at £268,400.
Tom Invoice, head of UK residential analysis at Knight Frank, mentioned: “The present provide glut has put downwards strain on asking costs, which sellers should bear in mind if they should transact sooner quite than later.
“Geopolitical and tariff dangers look like fading, which factors to a smoother experience for the housing market within the second half of the yr, which ought to be boosted by at the very least two price cuts.
“Nevertheless, the federal government’s non-existent monetary headroom means tax rise hypothesis is prone to intensify forward of the autumn Price range in a re-run of final yr.”
The typical property agent has 37 houses on the market, in comparison with 32 final yr.
In London, the South East and South West areas of England the variety of houses on the market is 16-19% larger than a yr in the past, whereas home costs are barely rising, with beneath 0.5% development over the previous yr.
Home value development is at the moment quickest, at over 3.5% each year, in components of the North West of England and Scotland together with Wigan (4.3%), Falkirk (3.8%) and Blackburn (3.6%) postal areas.
Along with affordability components, tax and coverage modifications aimed toward second owners and landlords are resulting in weaker demand and extra gross sales by these house owners, which is compounding the impression on home value development at a localised stage.
In the meantime there’s a 6% improve in gross sales agreed in comparison with a yr in the past.
Richard Donnell, govt director at Zoopla, mentioned “The variety of patrons and sellers agreeing house gross sales continues to extend year-on-year, demonstrating a continued need of extra households to maneuver house in 2025. Enhancing mortgage affordability will help shopping for energy within the second half of the yr.
“Nevertheless, patrons stay price-sensitive, particularly in higher-value markets the place the variety of houses on the market has grown essentially the most within the final yr, boosting alternative for house patrons. Critical sellers have to be life like on the place they set their asking value with a purpose to obtain a sale and safe a house transfer in 2025.
“The market stays on observe for five% extra gross sales in 2025 however home value inflation will stay between 1 and a couple of%.”
Sellers have to be life like on pricing if they’re critical about discovering a purchaser and shifting house in 2025.
The typical time to promote is 45 days, broadly in keeping with this time final yr. This ranges from 35 days within the North East to 57 days in Wales, whereas all of the southern areas within the UK common over 50 days because of a higher alternative of houses on the market.
Over one in 5 houses (22%) at the moment listed on the market have been in the marketplace for over six months and stay unsold, whereas just below 1 / 4 (23%) have been in the marketplace for 3 to 6 months and are but to discover a purchaser. The typical time in the marketplace for an unsold house is 75 days.
Sarah Cartlidge, department supervisor at Fraser Reeves property agent based mostly within the North West, mentioned: “We’re delighted to be seeing elevated vendor confidence this yr, with extra properties approaching to the market than 2024, nonetheless, property value stays key to agreeing a sale.
“We’re at all times eager to emphasize to potential distributors that they do want to cost positively and realistically from the get-go, with a purpose to safe purchaser in good time, and to make one of the best first impression doable when their property hits the market.
“We all know that any property can promote for the fitting value, bearing in mind the native competitors and the actual traits of every particular person house.”
