Zoopla’s latest House Price Index has revealed that the UK housing market is defying expectations, with 500,000 sale completions expected in the first half of 2023. This puts the country on track for 1 million sales, potentially higher, this year. Despite weaker market conditions, buyers are still in the market and agreeing deals with sellers at an increasing rate. Demand for homes is well down on this time last year, but at its highest since October, supported by falling mortgage rates and a strong labour market.

Although annual price inflation slowed to 4.1%, sales activity is supported by a boost in supply, with 65% more homes for sale compared to March last year and more sales in cheaper price bands. However, the time from listing to agreeing a sale has jumped by 71% in a year, and properties are taking longer to shift, with the average time to sell up 15 days compared to 12 months ago.

Zoopla Executive Director Richard Donnell said: “The housing market is arguably more balanced than it has been for more than three years. Prices are drifting lower compared to a year ago but fears of a major downturn in prices are overdone. Falling mortgage rates and a strong labour market are supporting activity levels from committed movers who need to be realistic on price if they are serious about moving home in 2023. We expect to see levels of activity continue to steadily improve over Easter and into the summer and H2”.

Head of personal finance at Hargreaves Lansdown Sarah Coles said: “Zoopla has spotted green shoots in the property market, but at this stage we can’t rule out a lethal frost. Asking price inflation continues to fall, and there’s little sign of that reversing any time soon. Nationwide figures show selling prices are now almost 5% below the peak in August last year, and we could realistically expect them to fall further before the correction is finished”.