Proactive Investors - Income growth and mortgage rate declines have driven sales activity across Britain’s housing market to its highest in four years, according to Zoopla.
Some 306,000 homes collectively worth £113 billion are currently in the process of being sold, marking a 30% increase year on year and fuelling the highest level of new sales since Autumn 2020.
House prices ticked up by just 1% over the year to October in comparison, as growing choice for buyers and affordability issues have kept a cap on increases.
Comparison site Zoopla said the market was on course for a “bumper year” as a result, after a spike on mortgage rates weighed on sales in 2023.
“Overall, the market remains on track for a modest 2% price increase in 2024 and 1.1 million sales,” Zoopla executive director Richard Donnell commented.
First-time buyers were said to have largely driven the recovery, with Zoopla forecasting the group would account for 36% of sales over the year.
However, speculation over the end of stamp duty exemptions in Wednesday’s Budget posed a risk to the market’s recovery, Zoopla said.
This is expected to see the threshold on stamp duty reduced from £425,000 for first-time buyers, which Zoopla warned could cost home seekers an additional £15,000.
“Possible changes to stamp duty relief will only create further barriers to ownership for this group who already face significant affordability constraints,” Donnell added.
“The housing market doesn’t need short-term policy tweaks from the Budget.
“The primary focus should be on providing the financial support and investment needed to help build the homes the nation needs for buyers and renters.”