An element of ‘scarcity’ in the market is pushing up house prices faster in more affordable locations, data shows.

With fewer homes being listed in some cheaper areas, locations like the West Midlands and Scotland are seeing ‘above-average’ annual price growth of two to three per cent, Zoopla said.     

Property prices grew by an average of 2.7 per cent higher in markets where the average house price is below £200,000. 

Blackburn, Falkirk and Wigan, which fall into this category, have seen some of the biggest house price growth at 3.5 per cent, the findings added. 

Prices were also 1.9 per cent higher in markets priced between £200,000 and £250,000. 

Properties worth less than £250,000 comprise 50 per cent of homes. 

In demand: An element of ‘scarcity’ in the market is pushing up house prices faster in more affordable locations, Zoopla said

Across Britain, house price growth slowed to 1.4 per cent as the number of homes for sale jumped 14 per cent, boosting buyer choice while limiting price growth. 

Expensive locations like London and the South East of England are seeing a flurry of listings and many homes dawdling on the market for longer.

In London, the South East and South West of England, the number of homes for sale is 16 to 19 per cent higher than a year ago, while house prices are barely rising, with under 0.5 per cent growth over the last year. 

Some 29 per cent of homes that are currently on the market that haven’t sold (or been taken down) within 6 months have an asking price of £500,000 or more. 

‘Affordability and the level of house prices are also important factors impacting price growth. The higher the price the greater the income needed to buy’, Zoopla said.   

It added: ‘There is a clear link between house price growth and the change in the number of homes for sale over the last year, with lower price growth in markets which have seen the greatest increase in homes for sale. This boosts choice, re-enforcing the buyer’s market.’ 

The latest Zoopla House Price Index showed there were ‘modest’ house price falls of around 0.2 per cent in areas where average property prices top £500,000.   

The average property price across Britain is £268,400, which is £3,960 higher than a year ago, Zoopla said. 

The average time to sell a property is 45 days across Britain, however this varies depending on location. 

In all southern regions, the average number of days it takes to sell a home is 50. In Wales it it 57 days, while in the North East of England, it is just 37 days. 

Zoopla’s analysis found that more than one in five, or 22 per cent, of homes have been on the market for over six months without securing a sale. In southern regions, the average number of days it takes to sell a property is 50. 

‘Sellers need to be realistic on pricing if they are serious about finding a buyer and moving home in 2025’, Zoopla said.  

The average estate agent has 37 homes for sale, compared to 32 last year. More sellers means more buyers, which has supporting a 6 per cent rise in sales agreed compared to a year ago, according to Zoopla.  

Richard Donnell, executive director at Zoopla, said: ‘The number of buyers and sellers agreeing home sales continues to increase year-on-year, demonstrating a continued desire of more households to move home in 2025. 

‘Improving mortgage affordability will support buying power in the second half of the year.

‘However, buyers remain price-sensitive, especially in higher-value markets where the number of homes for sale has grown the most in the last year, boosting choice for home buyers.’

He added: ‘The market remains on track for 5 per cent more sales in 2025 but house price inflation will remain between 1 and 2 per cent.’

Earlier this month, Halifax said average property prices fell month-on-month in May. 

The typical home fell £1,150 or 0.4 per cent and now costs £296,648, compared to £297,798 the previous month, it said.

Despite the monthly price drop, property values have increased by 2.5 per cent or more than £7,000 over the past year, Halifax added – though this was down from 3.2 per cent in April.

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