An emerging trend is pushing up house prices faster in more affordable areas, driven by what experts describe as ‘scarcity’ in the market. Data from Zoopla shows that in places where fewer homes are being listed, prices are rising more quickly than average.
In regions like the West Midlands and parts of Scotland, house price growth has been notably stronger, with annual increases of around two to three per cent. This contrasts with the national slowdown in price growth seen elsewhere in Britain.
According to Zoopla, property prices rose on average by 2.7 per cent in markets where the typical house price remains below £200,000. These areas are becoming unexpected hotspots for price rises.
Towns such as Blackburn, Falkirk, and Wigan have seen some of the sharpest increases, with house price growth of approximately 3.5 per cent. This growth is largely fuelled by limited supply and continued buyer demand.
Meanwhile, markets priced between £200,000 and £250,000 also saw prices rise by 1.9 per cent. Homes valued under £250,000 now make up around half of the UK housing stock, indicating their importance in shaping national trends.
Across Britain, the overall growth rate for house prices slowed to just 1.4 per cent as the number of homes on the market rose by 14 per cent. This increase in supply has given buyers more choice and, in turn, slowed down price increases.
More expensive regions like London and the South East have experienced a significant rise in the number of homes for sale, leading to many properties staying on the market for longer periods. In these regions, price growth has been minimal, with increases of under 0.5 per cent in the last year.
Interestingly, around 29 per cent of homes currently listed but unsold after six months have asking prices of £500,000 or more. This highlights how higher-value properties are struggling to attract buyers in the current market.
Zoopla pointed out that affordability remains a key factor influencing house price trends. In areas with higher average prices, the greater income required to purchase a home continues to limit price growth.
The property portal noted a clear relationship between house price increases and the change in the number of homes for sale: areas with more properties listed have seen slower price growth, as this creates a more balanced buyer’s market.
The latest Zoopla House Price Index reported small price falls of around 0.2 per cent in places where the average house price exceeds £500,000. This reflects the challenges faced by sellers in higher-value markets.
On average, a property in Britain is now valued at £268,400, which is £3,960 more than a year ago, according to Zoopla. Yet, selling times vary significantly depending on the region.
Nationally, it takes an average of 45 days to sell a home. In the South of England, it typically takes around 50 days, while in Wales it stretches to 57 days. However, in the North East of England, the average selling time is just 37 days.
Zoopla’s analysis revealed that around 22 per cent of homes have been on the market for over six months without finding a buyer. This figure is particularly pronounced in the South, where selling times remain higher.
Estate agents currently have an average of 37 properties for sale each, compared to 32 last year. The rise in available stock has also led to a six per cent increase in the number of agreed sales compared to the previous year.
Richard Donnell, executive director at Zoopla, commented that the steady increase in sales shows that many households remain keen to move in 2025. He suggested that improving mortgage affordability could further boost the market in the coming months.
Donnell added that buyers are still highly price-sensitive, especially in more expensive areas where more homes have become available. This wider choice keeps upward pressure on prices in check.
Looking ahead, Zoopla forecasts that the market is set for around five per cent more sales in 2025. However, they expect house price inflation to remain modest, between one and two per cent.
Earlier in the month, Halifax reported a small monthly decline in average property prices, with values falling by 0.4 per cent, or around £1,150, in May. This took the typical UK home price to £296,648.
Despite this drop, Halifax noted that property values had still risen by 2.5 per cent – or more than £7,000 – over the past year, although this was slightly down from the previous month’s annual growth rate of 3.2 per cent.
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