Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

House prices continue falling despite 'highest housing supply in eight years'

Published 30/05/2024, 10:23
© Reuters.  House prices continue falling despite 'highest housing supply in eight years'

Proactive Investors - House prices were down year-on-year this month but housing supply and numbers of agreed sales both improved in May.

House prices this month were down 0.1% on average compared to a year ago, according to Zoopla's house price index, with higher mortgage rates and a reversal of the pandemic's demand trends.

Biggest falls are being seen in cities near the coast and those that attracted an inflow of demand over the pandemic in the ‘race for space’, the housing platform said, as demand weakens and the one-off pandemic factors fade.

Zoopla expects the current variation in house price inflation to continue over 2024 as incomes and house prices realign, with the greatest adjustment across London and southern England.

However, housing supply improved with the number of homes available for sale in the UK reaching the highest level in eight years, apparently.

There were also more sales agreed, which means market activity "continues to improve", Zoopla said.

"There remains a clear divide between continued small annual price falls across southern England and the rest of the UK, where house prices are posting modest gains," said Zoopla research director Richard Donnell.

"Higher mortgage rates contribute to this variation, with levels of affordability and demand having a big impact on prices."

Read more on Proactive Investors UK

Disclaimer

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.