House sales activity has seen a surge of 25% compared to a year ago, as reported by Zoopla. Homeowners seem to be eager to make a move, with mortgage rates falling and some second home owners possibly selling up due to concerns over tax alterations, Zoopla stated.
According to the property website, the recent weeks have witnessed a remarkable increase in the number of sales being agreed upon across the UK. Market activity data from Zoopla compared the four weeks ending on September 22 with the same period in the previous year.
Notably, more properties are entering the market, with nearly a third (32%) of homes listed for sale on Zoopla advertised as “chain free”. Coastal and rural areas like Truro in Cornwall and Torquay in Devon are showing an above-average number of homes for sale, indicating that second home owners are looking to offload their properties, Zoopla highlighted.
The growing inventory of homes for sale signifies heightened confidence among sellers, including homeowners keen to move as mortgage rates decline. There’s a suggestion that investors and second home owners may also be reacting to tax changes and anticipating more adjustments in the upcoming autumn Budget.
With affordability being a restraining factor for house price growth, especially in southern England, a greater choice for home buyers is anticipated to keep house price growth in check in the coming months. Setting the right price is deemed crucial to attract buyers, Zoopla emphasized.
Nearly a fifth of the homes currently for sale have previously been on the market in the past two years, as per data from Zoopla. Over a third (37%) of sales are being agreed at more than 5% below the initial asking price, indicating the potential for low house price growth in the future.
Richard Donnell, executive director at Zoopla, pointed out that lower mortgage rates are instilling much-needed confidence among homeowners who have been waiting on the sidelines. Speculation regarding tax changes and the aftermath of prior tax adjustments are also seen to be stimulating the expansion in homes for sale.
The data from Rightmove revealed that Carluke in Lanarkshire, Scotland, is the fastest-selling property market in the UK this year, with homes being sold in an average of 15 days. Conversely, central London locations like Knightsbridge and Chelsea are taking longer to find buyers, reflecting the differing pace of high-end markets.
In conclusion, the current property market landscape indicates a mix of factors influencing buyer and seller behaviour, with mortgage rates, tax changes, and location playing significant roles in the dynamics of the housing market.