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UK Property Prices Forecast to Grow 2.5% as Market Activity Picks Up

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    House Prices Increased by 1.5% Annually

    According to the latest Zoopla House Price Index, property prices are on track to be 2.5% higher over 2024, with 1.1 million projected sales.

    The data shows that house prices rose by 1.4% over the first 7 months of 2024. The average price stood at £266,400 as of July 2024.

    Looking at the current UK property market, Zoopla notes that all areas of market activity are up year-on-year. This uptick has been supported by economic growth and rising consumer confidence.

    The overall price trend is registering growth, with some localised declines. The two English cities with the highest annual price growth were Manchester (2%) and Liverpool (1.7%). Thanks to this stable growth compared to other regions, the North West is gaining attention as a buy-to-let property hotspot.

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      Property Market Activity Up in All Areas

      The report shows that buyer demand for homes is a fifth higher compared to the same period last year. Demand fell significantly during the summer of last year due to a spike in mortgage rates, so the comparison with the current market shows a substantial difference.

      New sales agreed are also almost a quarter higher, continuing the trend for higher sales volumes that started earlier in the year.

      Sellers are bringing homes to market at an above-average rate, keeping up the flow of new supply. The stock of available properties for sale now stands at a 7-year high of 33 homes per agent.

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      Most Balanced Market for 5 Years

      Is investing in property a good idea in the current market? According to Zoopla, the housing market is more balanced now than it has been for 5 years.

      The long-awaited Base Rate cut was announced at the beginning of this month, but we are still waiting to see its impact on the property market.

      The report does reveal a modest increase in the number of new sales agreed upon in the days following the Base Rate reduction, suggesting some buyers waited for the cut to decide on a sale.

      Zoopla’s latest House Price Index states that there is sufficient buyer demand to support rising sales volumes, and the market is on track for 10% more sales this year compared to 2023.

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      Author

      Jessica Ferris

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      Jessica Ferris is a property writer at RWinvest, helping our readers stay ahead of property market trends with the latest news and statistics.

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        Market & Investment Trends, UK