Zoopla is urging critical sellers to hunt recommendation to cost their house appropriately so as to obtain a well timed sale, after its newest Home Worth Index revealed that UK home worth progress has slowed to 1.4% following a leap within the variety of properties on the market, which is boosting purchaser selection.
Affordability can be a drag on worth progress in larger priced markets – there are modest home worth falls (-0.2%) in markets with values of over £500,000.
In the meantime, the typical time to promote is 45 days, though over one in 5 (22%) properties has been in the marketplace for over six months with out attaining a sale.
Home worth progress falls as market loses momentum – Property Trade Eye
Trade reactions:
Nathan Emerson, CEO at Propertymark, commented: “It’s encouraging to see additional home worth progress, as folks proceed to strategy the shopping for and promoting course of with improved certainty. Though we’re nonetheless seeing elevated base charges at the moment sitting at 4.25 per cent, we’re beginning to see some excessive avenue lenders providing sub 4 per cent mortgage offers.
“We have now witnessed the current announcement of a Nationwide Housing Financial institution which hopes to mix a public funding of £16bn and a possible non-public funding of £53bn to assist make 500,000 new properties a actuality, which can doubtless be universally useful to all on the subject of homeownership.
Tom Invoice, head of UK residential analysis at Knight Frank, mentioned: “The present provide glut has put downwards stress on asking costs, which sellers should take note of if they should transact sooner reasonably than later. Geopolitical and tariff dangers seem like fading, which factors to a smoother trip for the housing market within the second half of the 12 months, which must be boosted by not less than two price cuts. Nonetheless, the federal government’s non-existent monetary headroom means tax rise hypothesis is more likely to intensify forward of the autumn Funds in a re-run of final 12 months.”
Sarah Cartlidge, department Supervisor at Fraser Reeves, commented: “We’re delighted to be seeing elevated vendor confidence this 12 months, with extra properties approaching to the market than 2024, nonetheless, property worth stays key to agreeing a sale.
“We’re all the time eager to emphasize to potential distributors that they do want to cost positively and realistically from the get-go, so as to safe a great 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 worth, taking into consideration the native competitors and the actual traits of every particular person house.”
Adam Feather, head of Robert Anthony Property Brokers, added: “Zoopla’s newest information confirms that it stays a purchaser’s market and that indicators of elevated warning amongst homebuyers will preserve worth progress in test throughout the second half of this 12 months.
“Extra properties on the market have boosted selection, and gross sales have grown year-on-year. However sellers should think about that consumers are way more price-sensitive when valuating their properties.
“The outlook for the housing market in H2 2025 might be dictated by the power of the economic system and employment market, together with the trajectory for mortgage charges, all set inside the context of the relative affordability of properties throughout the nation.”
Home worth progress falls as market loses momentum
