Zoopla’s house price index shows that house price inflation in the UK remains steady at 1.3%, compared to 1.8% a year ago and the average house price in the UK stood at £271,700.
The North East is the strongest performing region in Great Britain, seeing growth of 3.2% year on year, followed by the North West with 3.1% and Scotland with 2.6%, while Northern Ireland leads the UK with 6.7%.
Within these regions, cities such as Liverpool are seeing the strongest price growth in the country (4.5%), followed by Manchester and Newcastle, both of which are seeing 3% growth year on year.
However, the South tells the opposite story. Both London and the South East are seeing modest price declines of -0.2%, with the South West barely in positive territory at 0.1%. Within these areas, cities including Bournemouth -1.7%, Cambridge -0.9% and Brighton -1.1% are among the weakest performing markets.
Buyer inquiries are rising again as sales of well-priced homes continue – Property Industry Eye
Industry Responses:
Jeremy Leaf, North London estate agent: “Housing market activity is proving to be more resilient than we expected as the war in the Middle East continues longer than originally anticipated.
“However, the amount of property available in our offices – especially flats – is keeping prices under control and resulting in more long transactions as buyers are increasing their strength.
“The direction of travel for interest rates and concerns about the cost of living mean that more price-sensitive buyers are taking their time before submitting offers in the expectation that even if hostilities end soon, the after-effects will last much longer.”
James Nightingall of HomeFinder AI: “London is one of the most active but volatile property markets in the country. Geopolitical developments and economic factors such as mortgage rates have a big impact on buyer confidence and affordability. First-time buyers in particular, who are often dependent on favorable lending terms, are facing more challenging market conditions than last year. With inflation rising and lenders removing some mortgage deals, the majority of first-time buyers will remain cautious which means some properties will remain on the market for longer. Will stay.”
Ian McKenzie, CEO of The Guild of Property Professionals: “The latest Zoopla HPI underlines how resilient the UK housing market remains despite a backdrop of geopolitical tensions and increased borrowing costs. The average time to sell increased by just one day, a clear sign that activity has remained steady despite two months of conflict in the Middle East and continued mortgage rate pressures.
“What we are seeing is a market that is behaving rationally rather than reactive. Need-based buyers and sellers are continuing to transact underpinning overall stability, while more discretionary movers are clearly taking a more measured approach as they assess pricing and macroeconomic signals.
“While inflation pressures and global uncertainty continue to weigh on sentiment, there are early signs of conditions improving. Mortgage rates have begun to stabilize in recent weeks, and with swap rates easing, lenders are beginning to re-introduce more competitive fixed rate products. This is already driving a modest uptick in buyer demand, with inquiries rising after Easter.
“Looking ahead, the direction of interest rates will be important. However, the data shows that the market is not only stable, but well-positioned to respond positively as financial conditions gradually improve.”
Nigel Bishop of Recoco Property Search: “Rural property markets have seen huge price adjustments over the past year. Sellers have come to terms with the fact that they can no longer achieve the increased asking prices seen during the pandemic. The imbalance between supply and demand is increasing, with property prices falling. Higher taxes have prompted many second home owners to put their properties up for sale. In some parts of the country, this has created an oversupply, inevitably creating a buyers’ market that drives price negotiations. Gives more room for.”
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 been fully revealed. The disappearance of sub-4% mortgages, a wave of rising inflation due to higher energy costs and the government reportedly considering responses such as rent controls, means the impact will last for most of this year. This will continue to put downward 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 is better than many expectations, but with very different conditions depending on location and type of buyer. Well-priced homes are still moving quickly, but in first-time buyer hotspots, particularly in outer London, agents are feeling hesitant as affordability pressures increase.
“Notably, there has been a surge in inquiries after Easter, which suggests the underlying demand has not disappeared, it is 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.
“It is not a stagnant market, it is more selective, and agents are working hard on behalf of buyers and sellers to move transactions forward.”
Buyer inquiries are rising again as sales of well-priced homes continue