There was a noticeable uptick in market activity in February, with sellers being more open to accepting decreased offers on their homes.
A report from Zoopla shows that the appetite for buying homes went up by 11%, and the volume of completed sales increased by 15% compared to the previous year.
Despite the increased activity, there was a 0.5% dip in house prices compared to last year, with prices going up in seven regions and down in five.
Sarah Coles, an expert in personal finance at Hargreaves Lansdown, commented: “February continued the positive trend we witnessed at the beginning of the year, with more participants in the market and a rise in actual sales.
“However, it is noteworthy that prices are declining, sellers are reducing their asking prices, and the market is up against some significant challenges.
“The lower mortgage rates towards the end of 2023 and into 2024 were critical in lifting spirits in the market, and now that rates are beginning to go up again, we may see some buyers hesitating. The rates are still around what they were a year back, and the average rate for a two-year mortgage is still below 5.75%, but any increase can affect buyer decisions.”
She also mentioned: “There is a varied picture across the country. Unfortunately, in the south, excluding London, things are still tough.
“The southern regions, besides London, have suffered from continuous, substantial price increases in recent times, making homes less affordable and leading to significant cuts in asking prices.
“London stands out because its prices did not climb as dramatically or quickly as the rest of the southern region, allowing incomes to somewhat catch up. This has made London one of the most robust areas in terms of sales presently.
“Across other parts of the country, house prices have also gone up over the last few years but not to the same extreme, and hence the reductions have been more contained.”
