Zoopla said that while the imbalance between buyer demand and supply is not going to unwind in the near term, the recovery in the levels of new supply is gathering momentum
The flow of the new supply of homes in the past month rose by 5% compared to its five-year average, the latest house price index report by Zoopla revealed.
The real estate company said that while the imbalance between buyer demand and supply is not going to unwind in the near term, the recovery in the levels of new supply is gathering momentum.
In January and February, new listings were up in every part of the country compared to 2021 as more movers, and landlords, listed their homes for sale.
Read more: RICS: Supply issues continuing to push up house prices.
“The sheer level of activity in the market in recent years has eroded the stock of homes for sale. But the data indicates that more homes are now coming to the market, as movers and other owners list their properties for sale – and this will create more choice for the many buyers active in the market,” Gráinne Gilmore, head of research at Zoopla, said.
“The new supply of homes has risen above 2021 levels and is approaching the scale of new listings seen at this time of year before the pandemic hit in 2020, signalling that the market is starting to move back towards more normal conditions. However, total supply of stock remains tight, which will continue to put upwards pressure on pricing.”
The same Zoopla report showed that average house prices rose by +7.8% in the year to January, taking the average house price to £244,100.
Read more: UK house prices – the latest.
Zoopla said price growth was spurred during 2021 due to the pandemic “reassessment of home” driving demand among buyers and owners wanting to live elsewhere or in a home with different space. In addition, the stamp duty holiday running from summer of 2020 to autumn last year also boosted demand and eroded supply.
Also, according to the report, the new year surge in buyer demand is starting to ease, though at
a modest pace, but there are good signs for future stock levels, with new supply running ahead of 2021 levels in every region in the UK.
Last year, some 1.5 million home sales were secured, even as stock levels declined, as willing sellers and buyers were able to agree purchases.
Zoopla said it continues to expect 1.2 million home sales this year, down from 1.5 million in 2021, and that average house price growth will be between +2% and +4% at the end of the year.
