UK house prices are expected to rise in the second half, Zoopla says

House prices across the UK will rise in the second half of the year, according to a forecast, boosted by more people selling their homes. Jupla predicts that prices will increase by 2% by the end of 2024.

The improved outlook for the property market is a result of higher number of houses coming up for sale, the property portal said. The number of sales agreed in the four weeks to July 21 was 16% higher than the same period last year, and the average estate agent sold more homes than at any time in the past six years.

UK buyers are paying 96.8% of asking price – the highest in 18 months, according to Zoopla’s house price index. This equates to properties selling for an average of £16,600 above the asking price in June 2024.

Bank of England figures released on Monday showed that net mortgage approvals – a measure of future lending levels – were broadly unchanged in June from the previous month, a sign that the housing market is steady ahead of the general election and Thursday’s interest rate cut. Conclusion

Jupla chief executive Richard Donnell said: “After 2023 the property market is starting to heat up. There are clear signs of increased confidence between buyers and sellers, with more homes for sale and buyers paying a higher rate of asking price.

Zoopla expects higher sales, he said, but house price inflation “will be further constrained by supply and affordability pressures, which will keep purchasing power in check, particularly in the south of England”.

Donnell says nothing in the King’s speech or the new government’s plans will have a material impact on the market outlook over the next 12-18 months. However, he said he could “for a long time”.

“The Bank of England will have more impact on the market in the short term and will depend on the timing of the first base rate cut,” he said.

Experts are divided on whether there will be an interest rate cut on August 1. However, the bank is widely expected to start cutting its base rate from 5.25% by the end of 2024.

Simon Gerrard, former chairman of the National Association of Estate Agents, said: “Inflation is holding steady at the Bank of England’s 2% target, so there is a strong possibility that the policy rate will come down in August or September. Searching for foreclosed properties.

The property market is adjusting to higher mortgage costs after interest rates start to rise in 2022. Although property prices rose by just 0.1% over the past 12 months (to an average of £265,600), they rose first across all UK regions. Half of 2024.

Zoopla said that because there are naturally more sellers, there are more buyers who appear to be motivated for a number of reasons. It noted that many movers are looking for a larger home, often to accommodate a growing family. Data shows that a growing number of buyers are looking further afield to get the home and features they’re looking for.