The Zoopla House Price Index has revealed a significant surge in UK buyer demand, witnessing a 12% increase, accompanied by a notable 13% year-on-year rise in the volume of sales agreed across all regions and countries in the UK. Zoopla’s data underscores London’s pivotal role in this upturn, with new buyer demand experiencing a robust rebound, contributing to the capital’s most favorable housing affordability since 2016.

Contrastingly, the supply of homes available for sale has grown by 22% compared to the previous year, indicating renewed confidence among sellers and offering a broader array of choices for potential buyers. Despite this resurgence in market activity, the prevailing conditions still favor buyers, with one-fifth of sellers accepting prices more than 10% below the asking price to secure a sale.

Various figures in the property industry have provided insights into this market trend. Tom Bill, Head of UK Residential Research at Knight Frank, highlighted the impact of falling mortgage rates on driving buyer demand, expressing optimism for a seasonal spring bounce with an anticipated 3% growth in UK property prices for the year.

Matt Thompson, Head of Sales at Chestertons, emphasized the role of affordable mortgage deals in motivating buyers, foreseeing continued heightened buyer activity in the upcoming weeks. Adam Feather, Head of Robert Anthony Estate Agents, stressed the importance of realistic asking prices for sellers in a price-sensitive market, noting a rebound in purchaser confidence driven by reduced borrowing costs.

Tom Ashwood, Managing Director at Tom Ashwood Real Estate, observed a substantial increase in activity across all price ranges in early 2024, attributing it to reduced mortgage rates and a renewed intent to buy. Ashwood anticipates stable asking prices in the initial part of 2024, potentially leading to increased house price inflation if interest rates remain stable and buyer appetite persists, especially during the favorable selling period between spring and summer.