According to the latest Zoopla March 2024 UK House Price Index report, the rate of decline in UK house prices has significantly slowed to a monthly -0.3%. This indicates that the real estate market is showing strong signs of recovery, with increased transaction frequency, reduced incentives, and ample housing supply.
By the end of February 2024, the average house price in the UK remained stable at £263,900, up slightly by £200 from the previous month but down £900 compared to the same period last year, resulting in a year-on-year decline of -0.3%. The chart details the fluctuations in UK house prices over the past decade, showing a gradual flattening of house price trends with no significant upward trend.
Although the UK's annual house price inflation rate remains negative at -0.3%, it has rebounded from -1.4% in October last year.
There are significant differences in house price performance across different regions nationwide. House prices in the southern regions continue to decline, particularly in the East (-2.3%) and Southeast (-2.0%), while Northern Ireland (+4.1%) and Scotland (+2.1%) have seen rising prices, driving national growth.
It is worth noting that the house price inflation rates in various regions are generally higher than they were six months ago, the housing sales market is gradually warming up, and the overall real estate market price system is becoming increasingly robust.
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Looking ahead to the second half of the year, with rising mortgage rates and relatively reduced purchasing power for buyers, UK house prices are expected to adjust flexibly to adapt to changing market conditions.
Since the beginning of 2024, several key parameters of the UK housing market have shown positive progress. According to March data, house sales volume surged by 9% year-on-year, increasing market activity by 9 percentage points compared to the same period last year. Total transaction volume in the first quarter of this year increased by 7% compared to the same period last year.
Sales growth has been particularly strong in areas with relatively affordable housing prices, such as the Northwest (+13%) and Yorkshire and the Humber (+11%).
At the same time, the inventory of homes for sale has significantly increased compared to the same period last year, with the overall housing stock increasing by one-fifth. In the past four weeks, the average inventory of homes per real estate agent has increased by 11% compared to the same period last year, reflecting a significant increase in available housing options in the market.
In terms of newly added listings, the Southwest and Northeast regions have performed outstandingly, achieving large-scale growth rates of +28% and +26%, respectively, making them the most active regions for new listings.
Although the inventory of homes for sale in the London area has also increased by 8% year-on-year, the phenomenon of its inventory growth lagging behind the national average reveals a deeper reason: the relatively rapid rebound in house price inflation rates in the London area is related to the gap with other regions.
