The property sales market has continued to boom this year mirroring positive economic news elsewhere, says Zoopla

Its latest market snapshot shows growth for all key measures remains in double figures year-on-year including sales agreed (+10%) and stock (+11%).

House prices continue to rise – albeit less so in the south and more so in the north. For example, NI’s house prices are rising by 7.2% annually while in London and the south it’s 1.2%.

But there may be trouble ahead. Zoopla looked at prices on a month-on-month basis and found price rises faltering as mortgage interest rates and the Autumn budget rattled home movers.

The increase in Stamp Duty for many buyers on 1st April is also beginning to suck more confidence out of the market and is leading to lower offers as purchasers factor in the likely extra Stamp Duty cost.

Flat glut

One other trend spotted by Zoopla is a glut of flats coming onto the market recently which, when matched with flatling demand, has seen prices soften and overall rose just 0.5% nationally year-on-year while house increased by 2.2%.

Also, the ‘search for space’ during the pandemic boosted demand for houses more than flats, while concerns over running costs for flats e.g. service charges and ground rents, as well as fire safety concerns for some newer flats, have impacted demand, acting as a drag on the price of flat prices.

Consequently, the average value of a flat has increased by just seven per cent over the last five years compared to 24% for houses.

Richard Donnell, the portal’s Executive Director, says: “The housing market remains resilient with more people looking to move home in 2025 and 2026 than this time last year.

“Average earnings rising by six per cent over the last year, well ahead of inflation, is boosting buyer confidence and helping to reset housing affordability.

“While market activity is on the rise, we expect house price growth to be kept in check over 2025.”

Industry reaction

Nathan Emerson, CEO of Propertymark, says: “With Stamp Duty changes across England and Northern Ireland due to take effect from April, we have seen an increased keenness from many people to complete as soon as possible to save themselves £2,500 pounds when purchasing an average-priced property.

“The magnitude of house price growth varies across the UK; however, with inflation now standing higher at 3%, we may see this influence base rate decisions over the coming months to help maintain overall stability within the economy.

“With an ever-growing population, all devolved governments must not only turn their attention to ensuring house building targets are delivered in the areas where there is a need, but also ensure that the right type of homes are being built in line with the shift in buyer behaviour.”