House price growth and record mortgage approvals point to a confident sales market

Market activity is stronger than last year supported by economic growth and rising consumer confidence reveals Zoopla in its latest house price index. Buyer demand for homes is a fifth higher than this time last year. New sales agreed are almost a quarter higher, building on the increased momentum in sales from earlier in the year as mortgage rates fall to an average of around 4.5% for a 5-year fixed rate at 75% LTV. Sellers continue to bring homes to market at an above-average rate. Many of these sellers are also buyers, which explains why sales agreed continue to increase. Meanwhile, Nationwide says annual house price growth edged higher in August, up 2.4% year on year at the fastest pace since December 2022. Providing the economy continues to recover steadily, as the lender expects, it adds that housing market activity is likely to strengthen gradually as affordability constraints ease through a combination of modestly lower interest rates and earnings outpacing house price growth.