The supply of homes for sale is 20% higher than this time last year, up £45 billion on this time last year, according to Zoopla
The UK currently has £230 billion ($293 billion) worth of houses in the market, the highest supply of homes for eight years, which will keep house prices in check for the rest of this year.
The supply of homes for sale is 20% higher than this time last year, up £45 billion on this time last year, with the average estate agent handling 31 homes for sale – the highest supply in eight years, as per Zoopla.
The growth in the supply of homes for sale is evidence of renewed confidence amongst homeowners, some of whom delayed moving decisions last year. The quarterly rate of house price inflation has risen in recent months as more sales are agreed and prices firm, according to Richard Donnell, executive director at Zoopla.
Sales agreed are 13% higher year on year and while most homes for sale are new to the market, nearly a third (31%) of homes for sale were marketed in 2023.
The growth in supply has been driven by a rebound in the number of three and four+ bed homes for sale as existing owners return to the market and feel more confident to move after increasing mortgages hit demand.
The snap general election in early July is not expected to impact the property market, with currently 392,000 homes in the sales pipeline working their way through to completion over 2024.
A rise in fall-throughs is unlikely due to the election announcement as there is not a huge divide in policy between the two main parties, as per Zoopla.
The announcement of the election will slow the pace at which new sales are agreed while greater choice for buyers will keep house prices in check over 2024. It is essential that those serious about moving in 2024 price their homes realistically if they want to achieve a sale, Donnell added.
Guy Gittins, chief executive of Foxtons, also does not believe that the general election will hurt house sales.
Despite last week’s announcement of a general election, we have not seen a dampening of sentiment from buyers and sellers; in fact, last week we saw more sales agreed than we have done at any point during the same period in the last six years, he said.
He added: The prospect of a change in government has not deterred new buyers from entering the market either, last week we also had a record number of new applicant enquiries compared with the last five years. As buyers and sellers await the next interest rate decision, they should take some confidence from the fact that homeowners and prospective buyers are acting with confidence, despite the uncertainty of the election ahead.