Buyers are typically negotiating a 4.2% discount on the asking price, signalling that despite increased activity it’s still a buyers’ market, Zoopla research shows.
In September there were 12% more buyers in the market, though demand is still a third lower than a year ago.
This uptick in enquiries is partly seasonal but also reflects improved consumer confidence, which is at a two-year high, and homeowner expectations of lower mortgage rates which are currently on track to fall below 5%.
Richard Donnell, executive director at Zoopla, said: “The housing market continues to adjust to a higher mortgage rate environment. Better news on inflation and the end of base rate increases has provided scope for lenders to start reducing mortgage rates which has supported a modest uptick in demand for homes this September.
“Buyers continue to remain cautious and many are waiting for better value for money and improved affordability from lower house prices or further falls in mortgage rates before returning to the market.
“House price falls have been modest with the average house still 17% more expensive than before the start of the pandemic. Forbearance by lenders, tougher mortgage regulations over recent years and a strong labour market appear to have moderated the stress in the market compared to previous cycles that would have driven larger price reductions.
“House prices will continue to drift lower, especially in southern England, ending the year 2-3% lower meaning falling mortgage rates are required to boost activity and attract buyers back into the market.”
Demand has improved across all regions in the UK, noticeably in southern England where enquiries for homes have been weakest throughout 2023.
Demand is up 19% in the South East over the past three weeks and 16% in London.
The number of new sales agreed has also increased and is closely tracking 2019 levels.
