UK Property Sales to Jump by 10%

Get ahead of the curve with insights from Zoopla's report on the projected rise in UK property sales.

Buyers and sellers are showing increased activity in the property market, with a projected 10% boost in home sales expected for this year, according to the latest data from property website Zoopla. In February, all measures of activity were higher compared to the same period last year, with agreed sales up by 15% and buyer demand up by 11%. The market is on track to reach 1.1 million transactions this year, up from 1 million in 2023.

UK Property Sales to Jump by 10% | Zoopla Report

Although UK prices were down by 0.5% year-on-year, there were regional variations. Prices increased in Scotland, Northern Ireland, Wales, the Midlands, and the north of England, while they fell across the south of England. Belfast saw a 4.3% rise in prices, while the east of England experienced a 2.1% drop. The areas with falling prices are those with the highest prices, where buyers are facing affordability issues due to rising mortgage rates and increased living costs.

Last summer, fixed-rate mortgage rates reached their highest level since 2008 as the money markets reacted to the rising base rate. Following the Bank of England's decision to pause rate increases after reaching 5.25% in August, mortgage deal prices have been falling. Zoopla noted that this, along with faster growth in household incomes, has supported the increase in market activity. However, lenders are now pulling the cheapest sub-4% mortgages.

The property market is showing signs of recovery with increased buyer and seller activity. Regional variations in prices reflect affordability challenges in areas with higher prices. The recent fall in mortgage deal prices has supported market activity, but the withdrawal of the cheapest mortgages by lenders may impact future transactions.