UK housing market trends – Zoopla reveals the latest

Despite a decrease in the pace of house price inflation to -0.5%, the trend of slowing house price declines is consistent across all UK regions. Five regions in England are still experiencing annual price drops of up to -2.1%, whereas the rest, including Wales, Scotland, and Northern Ireland, are seeing positive price growth, with Northern Ireland reporting a 4.3% annual price inflation.

This stabilisation in pricing suggests that significant drops in house prices are not necessary to sustain sales, as evidenced by estate agents now securing an average of six new sales a month, compared to 5.2 in the previous year.

Zoopla noted that the UK is experiencing a “three-speed” housing market, influenced by geographical location. Southern England, excluding London, is facing the largest annual price falls due to rising mortgage rates and decreased buyer power, with average home prices at £344,000, which is 30% above the UK average.