House prices steady as buyer demand falls – Zoopla

UK house price growth is holding at 1.3% year-on-year, with sales volumes steady but buyer demand is weakening, Zoopla has revealed.

However, buyer enquiries fell by 13% year-on-year in March, adding to a softer trend seen since the start of the year.

The property platform also says that agreed sales are down by just 2%.

The number of homes for sale has increased by 6% compared with a year ago, widening choice across the market.

Relying on serious buyers

The firm’s executive director, Richard Donnell, said: “The market remains active, but becoming increasingly reliant on a smaller pool of serious buyers.

“Some early-stage buyers are adopting a wait and see approach but there is a sizable group of committed buyers who are pressing ahead with housing purchases.

“If mortgage rates stabilise at current levels, we expect sales activity to continue to hold up well compared to last year.”

He added: “Further increases in borrowing costs could weaken demand and impact sales volumes later in the year.”

Southern house price falls

Zoopla’s data shows that price movements vary by region, with the North West up 3.5% annually, while earlier price falls in southern England have started to ease.

Buyer enquiries are down between 7% and 19% year-on-year, with sharper declines in the North East and West Midlands, though market activity was stronger last year.

Sales agreed are flat or slightly higher in London, Wales, and Yorkshire and the Humber.

Around a quarter of those sales are cash purchases, and lenders have withdrawn sub-4% deals since tensions in the Middle East began rising.

Mr Donnell said: “The outlook is far from clear although we can see demand has stabilised over recent days.

“For buyers, there is less competition and more choice, but affordability is becoming more stretched.

“For sellers, homes are still selling, but buyers are more selective and price sensitive.”