The number of homes for sale in the UK is soaring, according to the latest data from Zoopla. Average house prices are up 1.4% so far this year, helping lift UK house sales and encouraging sellers to put their properties on the market.
A cut to interest rates and improving affordability are behind the raft of sellers putting their homes up for sale. Zoopla data showed estate agents had an average of 33 properties for sale – the highest for seven years.
Sales agreed are up 23% over the past year, but data shows that 20% of sellers have to drop their prices to achieve a sale.
“Sellers can’t afford to get carried away. Buyers are back, with demand up a fifth in a year, but sellers who get cocky, and price their home too optimistically, will pay a horrible price for their over-confidence,” said Sarah Coles, head of personal finance, Hargreaves Lansdown.
“Sellers who end up having to cut their asking price by 5% or more take more than twice as long to sell – which for new sellers would mean squandering the back-to-school September market.
“There’s plenty to cheer in this data, with house prices up 1.4% since the beginning of the year, buyer demand booming and more sales being agreed. The Bank of England interest rate cut has boosted sentiment significantly, and helped persuade buyers that now is a decent time to get stuck in.
“It didn’t have a dramatic overnight impact on average mortgage rates, but they’ve continued drifting southwards, and the fact they’ve been falling for a couple of months is starting to really add up. Moneyfacts figures show that the average rate on a 2-year fixed-rate deal has dropped from 5.97% at the end of June to 5.58% now.”