House sales are 12% higher compared to their level from a year ago as the housing market continues to benefit from more homes being for sale and renewed confidence among buyers.

According to the latest Zoopla House price Index, UK house price growth has remained broadly flat at -0.2% this month, contributing to a “more balanced market”.

The property website is expecting 100,000 more sales this year than in 2023 – which would equate to 1.1 million in 2024 – so long as sellers continue to remain “realistic” on pricing, it said.

Zoopla also suggested that the positive increase in sales is beginning to reflect in other data, such as mortgage approvals for home purchase, which were 32% higher in February 2024 compared to the previous year – marking a return to pre-pandemic levels.

However, despite improving consumer confidence mortgage rates remain around 4.5% compared to sub-2% in March 2021, and Zoopla warned that higher mortgage rates are adding to affordability pressures for buyers which is acting as a drag on house price inflation.

Executive director at Zoopla, Richard Donnell, said: “The rebound in sales being agreed continues for a fourth month as mortgage rates have fallen, consumer confidence improves and homebuyers have much greater choice of homes for sale. The pipeline of sales is growing and we expect 100,000 more people to move home in 2024 than last year.

“There is clear evidence that house prices are firming and the pace of price falls is slowing. We don't believe that prices will start to rise as buyers face much higher mortgage repayments than in the recent past.

“The market is adjusting to higher borrowing costs and what we need is continued price stability which will create the environment for continued growth in sales and home moves. It’s important sellers remain realistic on what they can achieve for their home.”

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