Zoopla has released its May House Price Index, revealing a marginal year-on-year drop in UK house prices as housing stocks hit record levels.
According to Zoopla, the average UK house price fell 0.1% in the year to May as sales agreed rose 13% with sellers feeling more confident to put their house on the market.
The number of homes on the market is at the highest levels for 8 years. Zoopla says estate agents have 20% more homes for sale than at the same time last year.
However, the rise in supply has capped prices – a trend that is thought to continue to persist throughout the rest of the year.
“There is a record high supply of homes for sale which shows renewed confidence among sellers, many of whom are also buyers. Greater choice will keep prices in check over 2024. The general election is likely to dampen the number of sales agreed in the run up to summer,” Richard Donnell, Executive Director – Research, at Zoopla.
As with all house price index data, there is massive dispersion in the activity in different regions of the UK. London has seen the slowest increase in homes available for sale, with an increase of just shy of 10%, while the South West has seen a bumper 33% jump in housing stocks.
