Supply of houses reaches highest level in eight years as sellers remain confident ahead of general election

The amount of houses for sale is at its highest in eight years, according to a new report, but this could lead to house prices remaining flat for the remainder of 2024.

Property portal Zoopla said the supply of homes for sale is 20 per cent higher than this time last year, with £230bn worth of properties on the market. Housing sales were also up 13 per cent. 

Its monthly report showed UK housing inflation cooled to -0.1 per cent, resulting in the average price of a home sitting at £264k. 

In London, house price inflation reached -0.8 per cent to £526k, remaining the most expensive place to buy across Britain. 

The capital has seen a slower rebound in the stock of homes for sale than the rest of the UK, up nine per cent over the year. 

However, the city has the highest value of homes for sale at £79bn or one-third of the UK total. This is 30 per cent higher than a year ago

Richard Donnell, executive director at Zoopla said: “The growth in the supply of homes for sale is evidence of renewed confidence amongst homeowners, some of whom delayed moving decisions in 2023. 

“The quarterly rate of house price inflation has picked up in recent months as more sales are agreed and prices firm.”

He added: “The announcement of the election will slow the pace at which new sales are agreed while greater choice for buyers will keep house prices in check over 2024. 

“It’s essential that those serious about moving in 2024 price their homes realistically if they want to achieve a sale.”

In six weeks, voters will be asked to choose between conservative leader Rishi Sunak and Labour’s Keir Stamer as the country’s head of state. 

Zoopla said the “general election in early July is expected to have a modest impact on housing market activity”.

Tom Bill, head of UK residential research at Knight Frank, said: “Growing supply is one reason that UK house price growth this year will be limited to low single digits. 

“However, the main obstacle for buyers is stubborn services inflation, which is keeping mortgage rates high. Asking prices therefore need to reflect the fact that buyers have more choice and tighter budgets. 

“General elections don’t tend to impact mainstream property markets and if anyone is attempting to guess what happens next to house prices, I would suggest looking closely at the next inflation data rather than the manifestoes.”