Buyers agreed sales at 3.6% below the asking price in recent weeks, meaning buyers still have wiggle room when it comes to negotiating with sellers.
That is according to Zoopla, which found that the gap between asking and agreed prices stood at 3.2% over the summer, while they peaked at 4.6% in late 2023.
The firm said: “It remains a buyer’s market and signs of increased caution amongst home buyers will keep UK house price growth in check over 2025.”
As it stands house price growth stands at a modest 1.9%, bringing typical prices to £267,500 in November.
Buyers and sellers returned to the market in 2024 having delayed moving decisions in the face of higher mortgage rates.
More homes for sale have boosted choice, while sales have grown year-on-year.
In the last four weeks sales agreed rose by 23% year-on-year, as buyers try to agree deals ahead of lower stamp duty thresholds in April 2025.
North-south divide set to continue in 2025
In 2025 Zoopla predicts low house price growth in the South, and higher growth in the North, averaging at 2.5% for the UK as a whole.
Since 2010 house prices in London have risen by 83%, followed by 70% across southern regions of England, 66% across the Midlands and 56% in Wales.
At the other end of the spectrum average house prices are just 19% higher in Northern Ireland, 30% higher in Scotland and 41% higher in northern regions of England, providing room for house price growth.
Richard Donnell, executive director at Zoopla, said: “Buyers and sellers returned to the housing market in 2024 having delayed moves in the face of higher mortgage rates.
“There is a sizable pipeline of sales that will complete in the first half of 2025 with many hoping to avoid higher stamp duty costs from next April.
“More sales have supported a return to house price growth across the country but home buyers have become more price-sensitive in recent weeks as mortgage rates drift higher.
“Affordability constraints will keep the pace of house price growth in check over 2025 but there will be enough price inflation to support 5% more home moves.”
Via @PropertyWire