Sales at a peak but interest rates threaten rest of year – Zoopla

Zoopla’s latest house prices analysis is published, indicating improving buyer and seller confidence – but warns that noises from the Bank of England on inflation control could slam the market into reverse in the second half of the year.

The main points of the new research are:

• House prices have fallen by 1.3% in the last six months but the speed of falls is reducing
as buyer confidence slowly improves

• Sales have reached their highest point this year – up 11% on the five-year average and
encouraging more sellers into the market

• Landlords selling homes are adding to supply, accounting for 11% of properties for sale

• There are distinct regional differences in the strength of market activity – Scotland, the North East and London are currently the best-performing regions

• Mortgage regulations have helped dampen the impact of higher mortgage rates on house prices so far – although the rebound in activity could be impacted if mortgage rates start to increase in H2 2023.

Mortgage gloom

Zoopla’s head of research, Richard Donnell said, “Falling mortgage rates In H1 2023 have supported increased market activity. Expectations that interest rates need to rise further to control inflation will push up mortgage rates.

“This is likely to result in weaker demand and market activity in H2 2023.”

You can read the full research document HERE