February brings no change to South West house prices
Property website reports strong surge in listings even as South West prices remain flat
The South West has seen no change in house prices for February, despite a dramatic increase in new property listings across the region and beyond, according to Zoopla.
The property website has recorded the strongest surge in new listings for a decade, with a 6% rise in homes being put up for sale in the four weeks leading to 15th February compared to the same period a year ago.
While the South West's house prices remain unchanged at 0.0%, the wider market shows potential benefits for buyers, especially as falling mortgage rates accompany the rise in listings.
Zoopla highlights that the influx of homes will expand options for buyers and help stabilize price growth this year.
Adjustments in lenders' criteria are further enabling potential buyers to borrow higher amounts, potentially increasing sales activity.
The current rate of sales agreements is strong, marking February as the fourth most active in terms of sale agreements over the past ten years, even with fewer buyers compared to last year.
Zoopla estimates 40% of properties for sale could be cheaper to purchase with a mortgage compared to renting locally, assuming a 20% deposit. This represents an improvement from 25% last year.
Regional disparities in house price changes are evident, with the North West leading with a 3.3% annual increase, while London experienced a slight decline of minus 0.2%.
In areas like southern England, where affordability challenges persist, sellers are encouraged to be realistic about pricing to secure timely sales.
Richard Donnell, Zoopla's executive director, suggests that the low house price inflation supports a stable market, with advantageous conditions stemming from improved mortgage affordability and more available properties.
According to experts, including David Fell from Hamptons and Nigel Bishop from Recoco Property Search, first-time buyers are gaining negotiation power due to their lack of existing properties to sell.
Despite changing dynamics, Tom Bill from Knight Frank and Alastair Douglas from TotallyMoney both note the pressure on buyers remains, with mortgage access still a crucial hurdle.
Jen Lloyd at Skipton Building Society reports increased application rates from first-time buyers, reflecting optimism in the market.
House price changes according to Zoopla:
- Northern Ireland, 8.0%
- North West, 3.3%
- Scotland, 2.8%
- North East, 2.5%
- Wales, 2.2%
- Yorkshire and the Humber, 2.1%
- West Midlands, 2.0%
- East Midlands, 1.0%
- Eastern England, 0.6%
- South West, 0.0%
- South East, -0.1%
- London, -0.2%