Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.
Zoopla: UK Sales Agreed Down 7% Year-on-Year, Buyer Demand Falls
Zoopla’s latest house price index reveals that three in five homes listed for sale since January have yet to find a buyer, with sales agreed falling by 7% year-on-year. Buyer demand has also dropped by 15% across the UK, according to the report.
The data shows that declines in sales agreed are more modest in Northern regions and Scotland, where buyers face fewer home options for sale. The North West and Scotland both recorded a 4% decline in sales stock. In contrast, Wales (-12%), East Midlands (-11%), East of England (-10%), and South West (-10%) have seen the largest decreases in sales agreed. London (-9%) and the West Midlands (-8%) also experienced above-average declines.
The West Midlands has seen the steepest decrease in buyer demand, dropping by 30% year-on-year, closely followed by the North East at 29%. The combination of political uncertainty and higher borrowing costs is affecting buyers differently across the country.
Zoopla’s data indicates that two- and three-bedroom houses are selling at a pace similar to last year’s, with committed movers still transacting. However, one- and two-bedroom flats remain the weakest market segment, with over two-thirds listed this year still unsold.
Mortgage rates reached 5% in April, resulting in an extra £125 monthly on the average mortgage, or £1,500 a year. First-time buyers in London are facing a monthly increase of £232, compared to £66 in the North East. Zoopla notes that mortgage rates have started to fall, edging lower in May to 4.8%.
Fewer sales are beginning to impact UK house price inflation, which has edged lower to 1.4% year-on-year. The North East and North West are currently the strongest performing regions in England, with growth of 3.5%, while Scotland is registering growth of 3%. London is facing its ninth consecutive month of negative annual house price growth at -0.2% in May, and the South East is at -0.3%.
For letting agents and inventory clerks, these trends highlight regional differences in market activity and the importance of accurate pricing and local market knowledge.
Source: Mortgage Strategy