UK property market shifts toward buyers as house price growth eases

House price growth in the UK slowed to 1.8% in February, as the increase in available homes for sale strengthens the buyers' market. After a steady recovery over the past year, residential property price growth is showing signs of slowing down, according to the latest data from Zoopla.

The property platform's House Price Index reveals that the annual growth rate for UK house prices dropped slightly from 1.9% in January to 1.8% in February. The average price of a UK home now stands at £267,500, £4,750 higher than this time last year.

This slowdown is attributed to the rise in the number of homes on the market outpacing the increase in sales. Currently, there are 11% more homes available compared to last year, while sales have risen by only 5%, which is contributing to a more favorable market for buyers. On average, estate agents now have 33 homes for sale, up from 29 last year.

The number of homes for sale is expected to grow even further as the spring selling season begins, with March, April, and May typically accounting for nearly 30% of annual listings. This will increase options for home buyers.

In addition, static mortgage rates, averaging 4.4% for a five-year fixed-rate mortgage, compared to 4% in late 2024, have reduced buying power in recent months. The return of higher stamp duty rates starting in April will also raise the cost of buying a home. As a result, around 80% of homeowners and 40% of first-time buyers will face higher stamp duty costs when moving, which may influence the price they are willing to pay.