Zoopla’s house price index shows UK house price inflation is holding steady at 1.3%, compared to 1.8% a year ago with the average price of a UK home sitting at £271,700.
The North East is the strongest performing region in Great Britain, seeing a 3.2% increase year on year, followed by the North West at 3.1% and Scotland at 2.6%, while Northern Ireland continues to lead the UK at 6.7%.
Within these regions, cities like Liverpool are seeing some of the strongest price growth in the country (4.5%), followed by Manchester and Newcastle, which both see increases of 3% YoY.
However, the South tells the opposite story. London and the South East are both seeing prices fall marginally at -0.2%, with the South West barely in positive territory at 0.1%. Within these regions, cities including Bournemouth at -1.7%, Cambridge at -0.9% and Brighton at -1.1% are among the weakest performing markets.
Buyer enquiries rebound as well-priced homes continue to sell – Property Industry Eye
Industry reactions:
Jeremy Leaf, north London estate agent: “Housing market activity is proving more resilient than we dared hope as war in the Middle East continues for longer than originally anticipated.
“However, the amount of available property in our offices – particularly flats – is keeping prices under control and resulting in more protracted transactions as buyers flex their muscles.
“Worries about the direction of travel for interest rates and the cost of living means more price-sensitive purchasers are taking their time before submitting offers in expectation the after-effects will linger for considerably longer even if hostilities end soon.”
James Nightingall of HomeFinder AI: “London has one of the country’s most active but also volatile property markets. Geopolitical developments and economic factors such as mortgage rates have a major impact on buyer confidence and affordability. Particularly first-time buyers, who often depend on favourable lending conditions, are facing more challenging market conditions compared to last year. With inflation on the rise and lenders having removed some mortgage deals, the majority of first-time buyers will remain cautious which means some properties will sit on the market for longer.”
Iain McKenzie, CEO of The Guild of Property Professionals: “The latest Zoopla HPI underscores just how resilient the UK housing market remains, even against a backdrop of geopolitical tension and elevated borrowing costs. A marginal increase of just one day in the average time to sell, is a clear indication that activity has held firm despite two months of conflict in the Middle East and continued mortgage rate pressures.
“What we’re seeing is a market that is behaving rationally rather than reactively. Needs-based buyers and sellers are continuing to transact, underpinning overall stability, while more discretionary movers are understandably taking a more measured approach as they assess pricing and wider economic signals.
“While inflationary pressures and global uncertainty continue to influence sentiment, there are early signs of improving conditions. Mortgage rates have begun to stabilise in recent weeks, and with swap rates easing, lenders are starting to reintroduce more competitive fixed-rate products. This is already feeding into a modest rebound in buyer demand, with enquiries picking up post-Easter.
“Looking ahead, the direction of interest rates will be crucial. However, the data suggests that the market is not only holding steady but is well-positioned to respond positively as financial conditions gradually improve.”
Nigel Bishop of Recoco Property Search: “The rural property markets have seen drastic price adjustments over the past year. Sellers have come to terms with the fact that they can no longer achieve the inflated asking prices seen during the pandemic. Adding to property prices seeing a dip is a growing imbalance between supply and demand. Higher taxes triggered many second home owners to put their property up for sale. In some parts of the country, this has created an oversupply, inevitable creating a buyers’ market that allows more room for price negotiations.”
Tom Bill, head of UK residential research at Knight Frank: “The impact of the Middle East conflict on the UK housing market has not yet fully materialised. The disappearance of sub-4% mortgages, a looming inflationary hump caused by higher energy costs and a government reportedly considering responses like rent controls mean the impact will linger for much of this year. That will keep downwards pressure on prices and, to a lesser extent, transaction volumes.”
Nathan Emerson, CEO of Propertymark: “On the ground, our agent members are reporting a market that’s holding together better than many expected, but with very different conditions depending on location and buyer type. Well-priced homes are still moving quickly, but in first-time buyer hotspots, especially across outer London, agents are seeing hesitation creep in as affordability pressures bite.
“What’s notable is the rebound in enquiries post-Easter, which suggests underlying demand hasn’t disappeared, it’s just more price-sensitive and cautious. For property professionals, this means sharper pricing strategies, clearer communication with sellers, and more support for buyers navigating higher upfront costs.
“This isn’t a stalled market, it’s a more selective one, and agents are working harder on behalf of buyers and sellers to keep transactions progressing.”
Buyer enquiries rebound as well-priced homes continue to sell
Read the orginal article: https://propertyindustryeye.com/property-industry-reacts-to-zoopla-house-price-index-23/?utm_source=rss&utm_medium=rss&utm_campaign=property-industry-reacts-to-zoopla-house-price-index-23
