House sales are forecast to rise by 10 per cent as a growing number of buyers and sellers return to the property market.
Activity across the housing market was higher in February, according to Zoopla data which confirmed a 15 percent jump in agreed sales 11 percent increase in buyer demand.
These figures put the housing market on the trajectory for 1.1 million transactions in 2024, up from one million in 2023.
UK prices fell by 0.5 per cent year on year, although rates varied widely across regions.
Mortgage holders are enjoying stable tariffs for the first time in months
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Data suggests areas in Southern England, outside of London, have seen the biggest annual price falls in the country. The average home now costs £344,000 in this area, which is 30 per cent higher than the UK average.
Conversely, prices increased across Scotland, Northern Ireland, Wales, the Midlands and the north of England.
Belfast recorded a 4.3 per cent rise in prices, while there was a drop of 2.1 per cent in the east of England.
London has seen house prices average around £534,000, despite seeing slight improvements in affordability over the past seven years.
Zoopla executive director Richard Donnell, said: “The housing market has proved very resilient to higher mortgage rates and cost of living pressures.
“More sales and more sellers show growing confidence amongst households and evidence that four to five per cent mortgage rates are not a barrier to improving market conditions.
“The momentum in new sales being agreed has been building for the last five months and the sales market is on track for 1.1m sales over 2024 supported by new sellers coming to the market. “
Mortgage holders are enjoying lower tariffs as lenders anticipate a decline in the base interest rate at the end of this year.
However, borrowers should still expect four per cent to five per cent rates over much of 2024, Zoopla warned.
Buyers and sellers are returning to the housing market
PA
The increase in activity has been described as good news for sellers, but Sara Coles, head of personal finance at Hargreaves Lansdown, warned that “serious hurdles” may still emerge.
“Falling mortgage rates at the end of 2023 and the beginning of 2024 made the key difference in boosting market optimism and rates are starting to rise again.
“They’re still only roughly where they were a year ago, and the average two-year rate is still under 5.75 per cent, but a rise may persuade some buyers to press pause.”
It comes as Rightmove discovered that the average house price had jumped by £3,000 in February on the previous year. The increase was put down to mortgage rates remaining stable following a surge that caused uncertainty at the beginning of 2023.
