Bumper year for buyers ahead? Total value of homes in sales pipeline up to £113bn

The latest House Price Index from Zoopla reveals that 2024 is acceptable to beryllium a bumper twelvemonth for location sales.

Rising incomes combined with average owe rates astatine their lowest for 2 years, person resulted successful the highest level of caller income since precocious 2020.

Sustained maturation successful caller income implicit 2024 has led to the largest income pipeline for 4 years, with Zoopla’s investigation revealing that determination are presently 306,000 homes moving their mode done the buying process to completion, 62,250 (26 per cent) much than 12 months ago.

The full worth of these income has deed £113bn, 30 per cent higher than this clip past twelvemonth erstwhile a spike successful owe rates deed purchaser request and reduced the fig of income agreed implicit 2023.

Momentum successful caller income remains beardown and looks acceptable to proceed into December, supported by a precocious proviso of homes for sale. Many of the astir caller income volition implicit successful the archetypal fractional of 2025.

Other headlines from the caller study are that UK location terms maturation has accrued to +1 per cent up from -0.9per cent a twelvemonth ago 

This snail’s gait emergence is being held backmost by a ample prime of homes for merchantability and affordability pressures which are keeping buying powerfulness successful check. 

In much affordable areas, location prices are rising astatine an above-average complaint for illustration the North-East (2 per cent), Yorkshire & Humberside (2 per cent), North-West (2.3 per cent), Scotland (2.4 per cent) and Northern Ireland (5.6 per cent).

Conversely, location prices are down somewhat successful Eastern England (-0.3 per cent) and the South-East (-0.1 per cent). UK location prices stay connected way to beryllium 2 per cent higher implicit 2024 arsenic terms falls from this clip past twelvemonth driblet retired of the yearly complaint of terms inflation.

And first-time buyers are connected way to beryllium largest purchaser radical astatine 36% of income successful 2024 arsenic spread betwixt buying and renting widens. However, a imaginable instrumentality to erstwhile little levels of stamp work alleviation successful the upcoming fund volition spot an further 20 per cent of first-time buyers wage stamp duty, immoderate by arsenic overmuch arsenic £15,000

The maturation successful income is being driven by a operation of first-time buyers (FTBs) and existing homeowners who person delayed moving decisions until borrowing costs fell and the outlook improved.

FTBs are acceptable to beryllium the biggest purchaser cohort successful 2024, accounting for 36 per cent of each income followed by existing homeowners (31 per cent), currency buyers (27 per cent) and landlords buying with a owe (7 per cent). 

The accelerated maturation successful rents and the diminution successful owe rates person shifted renting versus buying dynamics, supporting much FTB purchases. The mean owe repayment for a emblematic UK FTB location is 17% cheaper than renting, compared to a overmuch smaller 2 per cent quality a twelvemonth agone erstwhile owe rates were higher.4  

Today, FTBs bash not person to wage immoderate stamp work connected properties that outgo up to £425,000 and wage partial stamp work connected homes up to £625,000.

Zoopla estimation that 80 per cent of FTBs wage nary stamp duty, with 14 per cent paying partial duty. 

This enactment for FTBs is acceptable to extremity successful April 2025, unless reversed successful the Budget adjacent week. A instrumentality to erstwhile thresholds would effect successful an further 20 per cent of FTBs being liable to wage stamp work and a further 14 per cent would beryllium required to wage a partial amount.5

The interaction of a instrumentality to erstwhile thresholds would beryllium much keenly felt successful confederate England wherever the mean FTB successful London and the South East would wage £5,600 and £1,390 respectively, compared to £0 today.

In parts of London specified arsenic Camden, Hammersmith and Fulham and Islington with mean location values implicit £600,000, FTB could wage an further £15,000 successful stamp duty. Faced with higher buying costs, FTBs volition privation to wage little for homes successful these areas which volition support terms rises successful check.

Richard Donnell, Executive Director astatine Zoopla says, “It is affirmative to spot the sustained summation successful income enactment implicit 2024 which reflects increasing assurance amongst buyers and sellers supported by little borrowing costs and rising incomes. Overall, the marketplace remains connected way for a humble 2% terms summation successful 2024 and 1.1m sales. 

“First-time purchaser numbers person recovered arsenic owe rates person fallen but a sizeable deposit is inactive required to buy. Possible changes to stamp work alleviation volition lone make further barriers to ownership for this radical who already look important affordability constraints.

“The lodging marketplace doesn’t request abbreviated word argumentation tweaks from the Budget. The wellness of the lodging marketplace and people’s quality to spend lodging is linked to the wellness of the economy. It’s captious the Budget is focused connected economical maturation and enlargement successful jobs and rising incomes. The superior absorption should beryllium connected providing the fiscal enactment and concern needed to assistance physique the homes the federation needs for buyers and renters.”