Property prices remain broadly static, but sales volumes are going up, according to Zoopla’s latest figures
Annual house price inflation stands at -0.2%, the same as in February, according to Zoopla’s House Price Index. The property website has published its latest figures revealing that prices are broadly static, but sales volumes have gone up by 12% year on year.
The property website says that higher mortgage rates are impacting buying power, and buyers’ annual mortgage costs are 61% higher than three years ago.
Buyers in Southern England are the worst hit, but Zoopla says the market is on track for 1.1 million sales this year, which will be up 10% from last year.
However, the property website claims that the housing market is showing a sustained upturn in new sales.
More homes for sale and renewed confidence among buyers are helping to boost the market.
The recovery in sales is starting to show in other data as mortgage approvals for home purchases have increased.
The end of low mortgage rates
However, the housing market is still adjusting to the end of extremely low mortgage rates since 2022. Mortgage rates have spiked twice in the last two years, at the end of 2022 and in the summer of 2023, as rates went up to combat rising inflation.
While the base rate looks to have peaked at 5.25% (a 16-year high), consumer confidence in the market is improving.
According to Zoopla, mortgage rates have gone from sub 2% in March 2025 to around 4.5% today. However, house prices are still 13% higher than in March 2021.
Prices continue to fall across five English regions, covering Southern England and the East Midlands. The East of England has shown the largest price drop, -1.7%, but improving market activity in recent months has led to house price inflation turning positive across the three regions of Northern Ireland, namely West Midlands, Wales, And Scotland.
Zoopla says some buyers are looking further afield to find the type of property they need, with a third of households looking to move out of their local area to find their desired home.