House price growth slows as supply rises and inflation bites

House price growth is starting to slow, Zoopla has said, as households face a squeeze on their finances and the supply of properties coming onto the market increases.

The availability of homes for sale is on an upward trajectory, with new listings of properties for sale running at 5% above the five-year average.

With the supply-demand imbalance narrowing, according to the property portal, the data provided shows that house price growth eased slightly to 7.8% in January, down from 8% in December.

However, Zoopla points out that the market is highly localised, with rises of 16.6% in Powys in Wales to declines of -2.2% in the City of London

New listings have risen for every property type in the first two months of the year compared to 2021 – but particularly for three- and four-bedroom detached family homes compared to the same period last year

In January, half of all homes listed for sale were purchased within three weeks of coming to market, compared to a third of properties during the same period last year

The average house price across the UK is now £244,100, a rise of around £80,000 over the last decade

The recent rise in new supply indicates green shoots of recovery for stock levels, signalling a possible return to pre-pandemic stability for the rest of 2022, Zoopla said.

Read the full article on Property Industry Eye | MARCH 4, 2022 | MARC DA SILVA