House sales increase continues as price inflation remains static

This coincided with house price inflation remaining broadly static during the month, with the market now looking more balanced than it has been since before the pandemic – giving more people a chance to move homes in 2024.  

In addition to this, the combination of there being more homes for sale and renewed confidence among buyers has led to the number of sales being agreed increasing by 12% year-on-year.  

The recovery in sales is also starting to be reflected in other data, including mortgage approvals for home purchases, which were 32% higher in February 2024 – with it now returning to pre-pandemic levels.  

However, following the end of ultra-low mortgage rates beginning in 2022 – which saw mortgage rates move from sub two percent in March 2021 to 4.5% today – the annual mortgage repayment for a home purchase has ri–sen by 61% from £7,100 to £11,400 at a national level.  

Reflecting on its findings, Zoopla’s executive director of research Richard Donnell said: “I expect UK house prices to continue to firm over 2024 rather than seeing any acceleration in house price inflation. 

“The current divergence between the south and the rest of the UK will also continue over the coming months. 

“With fixed rate mortgages today already reflecting expectations for interest rate reductions later in the year, I don’t expect any major changes in average mortgage rates in 2024.

“What the housing market needs most is continued price stability which will create the right environment for continued growth in sales. I believe sales numbers rather than price growth will be the key indicator of housing market health for the foreseeable future.”