he UK property market has experienced its most active May in the past four years, according to fresh analysis from Zoopla.
Their report highlights a notable rise in sales activity this month, with buyers showing renewed confidence even after the withdrawal of stamp duty reliefs.
Figures suggest that the number of sales agreed in May is the highest since the property boom triggered by the pandemic back in 2021.
One contributing factor is the rise in housing supply. There are now 13 per cent more homes listed for sale compared to the same period last year, giving buyers more choice and stimulating movement in the market.
Falling mortgage rates have also played a key role. Since April, a number of lenders have not only reduced rates but have also eased affordability checks, making it easier for people to secure larger loans.
Zoopla’s estimates indicate that borrowers now have access to 20 per cent more mortgage funding than earlier in the year. This increased borrowing power is helping to fuel the current upturn in property transactions.
According to Richard Donnell, executive director at Zoopla, the current increase in homes for sale is encouraging more buyers to enter the market. He explained that improved mortgage offers and revised affordability assessments by lenders are also helping to boost the number of agreed sales.
Despite this rise in activity, house prices have remained relatively flat compared to the same period last year. Many sellers are still having to accept offers below their asking price in order to secure a deal.
Zoopla reports that, on average, house prices across the UK have risen by just 1.6 per cent over the past 12 months. Additionally, homes are typically selling for around £16,000 less than the original asking price.
Zoopla has pointed out a clear divide in how the housing market is performing across the UK, particularly between the North and the South.
In southern England, the rise in the number of homes for sale is giving buyers more choice, which is helping to keep house price growth in check. The South West has seen a 21% increase in available homes compared to this time last year, while London and the South East have seen rises of 17% and 15% respectively. This growing supply, combined with affordability pressures, has resulted in house price growth remaining under 1% in these regions — from just 0.5% in the South East to 0.9% in the South West.
On the other hand, parts of the North are seeing fewer new listings. There are only 3% more homes for sale in the North West and 5% more in Scotland compared to last year. With homes more affordable and demand picking up, these areas are seeing faster price growth. House prices are now 3% higher in the North West and 2.9% higher in Scotland, with stronger growth also seen across northern England and Northern Ireland.
Richard Donnell from Zoopla explained that the North is benefitting from better affordability, which is driving more sales and stronger price rises. In contrast, affordability remains a key issue in the South, which continues to hold back both price increases and sales activity.
Donnell also highlighted that both buyers and sellers need to tailor their approach based on where they are in the country. However, he advised that sellers everywhere should remain realistic about pricing. Zoopla expects the number of home sales to keep increasing throughout the year, with average UK house prices forecasted to rise by around 2% by the end of the year.
This trend is backed up by recent figures from Hamptons, which analysed Land Registry data. Their research found that areas in the Midlands and the North are seeing the strongest growth in house prices — well above the national average.
Blackburn with Darwen in Lancashire has seen the sharpest increase, with average property prices jumping by 14.4% in a year. Homes there went from an average of £138,290 in 2024 to £158,170 at the start of this year, which is a rise of £20,000.
Interestingly, Zoopla also named Blackburn as one of the fastest growing property hotspots, reporting a 5.8% increase in average prices over the last year.
Local estate agent Martin Bennett of Crown Estates and Lettings in Blackburn confirmed that the market in the area is thriving. He said demand is growing at both the entry-level and premium ends of the market, with starter homes now typically listed at £75,000 — a big jump from around £50,000 just two years ago.
He added that homes priced correctly are selling quickly, often within two weeks, and it’s not unusual for sellers to receive interest from more than 10 buyers on the very first day of viewings.
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