Good news for sellers, house prices are on the rise – but don’t get too excited just yet.

Despite rising prices, experts at property website Zoopla are warning sellers not to get carried away with their asking prices. This comes as the number of homes for sale hits a seven-year high, meaning buyers have more choice than ever.

So, how much are prices going up?

Zoopla predicts house prices will be 2.5% higher at the end of 2024 than they were at the start. This is a big turnaround from their earlier prediction of a 2% drop.

Why are prices going up?

It’s all thanks to falling mortgage rates, which are breathing life back into the market. With some five-year fixed-rate deals now dipping below 4%, buyers are feeling more confident. In fact, Zoopla reports 20% more buyers are searching for properties compared to this time last year.

What does this mean for sellers?

While this increased activity is good news, there’s a catch. With so many properties up for grabs, competition is fierce.

• The average estate agent has 33 homes on their books.
• One in five sellers are slashing their asking prices by 5% or more.
• Homes with overpriced asking prices are taking more than twice as long to sell – and are more likely to be taken off the market entirely.

The message is clear: price realistically from the start.

Where are prices rising the most?

The good news is that price increases are being seen across most of the country. However, there are still some regional differences.

• Fastest risers: More affordable areas, particularly those close to bigger cities are seeing the biggest jumps. Wolverhampton is up 3%, while Oldham and Wakefield aren’t far behind at 2.8% and 2.7% respectively.
• Scottish surge: North of the border things are even hotter, with Dumfries and Galloway leading the pack with a 4.4% surge.
• Lagging behind: The East of England, South East, and South West are all experiencing small dips in prices.

What does the future hold?

Zoopla believes this trend of moderate price growth will continue into 2025. While rising incomes will gradually improve affordability, high mortgage rates will keep a lid on things for now.

Richard Donnell, a top expert at Zoopla, sums it up: “Momentum in the sales market continues to build as mortgage rates drift lower, giving sellers more confidence. Buyers have much greater choice which will support sales numbers, but this will keep prices rises in check.”