UK house prices eased by 0.1% to £264,300 in the 12 months to April, as homes for sale hit their highest point in eight years, Zoopla data shows.  

The average agent has 31 homes for sale, up 20% on this time last year, says the property website’s latest house price report, with “sellers returning to the market in growing numbers”.  

It adds that the value of homes for sale is currently £230bn, 25% higher than a year ago, driven by “a rapid recovery in the supply of three- and four-bedroom family homes, after a chronic shortage over the pandemic”.  

The survey adds: “Many existing homeowners delayed moving decisions in the second half of last year, unsure about the impact of higher borrowing costs on house prices and buyer demand.   

“The decline in mortgage rates, together with rising sales volumes and firmer pricing, has brought more sellers back into the market, many of whom are also buyers.”  

This has led to agreed sales lifting by 13% compared to this time last year, as volumes continue to recover back towards the long-run average.   

Sales agreed have grown 22% across the North East but are up by just 1% in Wales, the study points out.  

It adds: “House prices are broadly static, falling 0.1% over the last 12 months. They will continue to be kept in check by rising supply.”  

However, the report points out that the general election campaign may slow house sales momentum.  

It says: “The election announcement is likely to stall the pace at which new sales are being agreed in the coming weeks, as we run up to the start of the summer slowdown.   

“Most buyers well into the home buying process close to agreeing on a sale will ideally want to push through and agree sales now. Those who are earlier in the process may look to delay decisions until the autumn after the election is over.”  

Propertymark chief executive Nathan Emerson adds: “It’s extremely positive to see such a sizable uplift in the market across the last twelve months.   

“However, with a general election now confirmed, until there is full clarity on the direction any new government intends to take regarding housing, we expect there to be a temporary slowing across the summer months of both people choosing to sell their property and those actively looking to buy.  

“We do have the positive news that inflation is now firmly tracking downwards and would be keen to see interest rates follow.   

“We are hopeful across the coming months that lenders will bring both competitive and targeted deals to the marketplace at the first opportunity.”  

ASK Partners chief executive Daniel Austin points out that this rise in home sales is also good for landlords. 

Austin says: “The property sector is recovering. Rent values have seen sustained growth, positioning real estate as reasonably valued in comparison to gilts and presenting growth potential.  

“In the realm of commercial real estate, factors like physical condition, location, and age significantly influence a property’s value. Well-maintained properties boasting modern amenities tend to command higher prices, while neglected ones may struggle to attract tenants or investors.  

“In the current market, the emphasis has shifted towards the importance of location and quality over the yield on debt or cost. We anticipate opportunistic acquisitions of prime properties in prime locations.”