House sales are at their highest level since late 2020, Zoopla has stated, amid rising incomes combined with average mortgage rates currently reaching their lowest for two years.

Zoopla’s latest House Price Index also revealed that house prices are rising slowly, up by 1% over the last 12 months, compared to -0.9% a year ago.

The property portal suggested that house price inflation is being held back by a large choice of homes for sale and affordability pressures, which are keeping buying power in check.

Despite this, Zoopla said that sustained growth in new sales over 2024 has led to the largest sales pipeline the market has seen for four years. The group’s analysis revealed that there are currently 306,000 homes working their way through the buying process to completion, 62,250 (26%) more than 12 months ago.

The total value of these sales has hit £113bn, which is 30% up on than this time last year when a spike in mortgage rates had hit buyer demand and reduced the number of sales agreed over the second half of 2023.

Executive director at Zoopla, Richard Donnell, commented: “It is positive to see the sustained increase in sales activity over 2024 which reflects growing confidence amongst buyers and sellers supported by lower borrowing costs and rising incomes. Overall, the market remains on track for a modest 2% price increase in 2024 and 1.1 million sales.”

Zoopla’s findings also indicated that the momentum behind new sales remains strong and looks set to continue into December, supported by a high supply of homes for sale. The property platform said that many of the most recent sales will complete in the first half of 2025.

Donnell added: “The housing market doesn’t need short term policy tweaks from the Budget. The health of the housing market and people’s ability to afford housing is linked to the health of the economy.

“It’s vital the Budget is focused on economic growth and expansion in jobs and rising incomes. The primary focus should be on providing the financial support and investment needed to help build the homes the nation needs for buyers and renters.”

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