There are currently £79 billion worth of homes for sale in London, up 30 per cent from this time last year.
Property in the capital accounts for a third of the total value of homes on the market in the UK, according to property website Zoopla.
The capital’s stock of homes has rebounded nine per cent, although price inflation is down 0.5 per cent across London.
“We have seen a clear uplift in the number of homeowners putting their property up for sale to benefit from the heightened buyer demand associated with the spring market,” said Matt Thompson, head of sales at Chestertons.
“Despite the influx of sellers, demand still outweighs supply. The property market will therefore continue to be competitive but as supply levels increase, some sellers may be more willing to reduce their asking price in order to secure a sale.”
Londoners have remained undaunted by the general election, with 88 per cent of home-movers in the capital reporting that it won’t impact their plans, Rightmove reported. Britain’s supply of homes for sale is at its highest point in eight years, according to Zoopla’s research, in a trend which experts say will limit house price rises for the rest of 2024.
Zoopla said the average estate agent has 31 homes for sale, up 20 per cent on the same point last year and the highest number since 2016.
The statistic equates to about £230 billion-worth of homes on offer, as sellers continue returning to the housing market in growing numbers.
Many existing homeowners delayed moving decisions in the second half of last year, Zoopla said, as the impact of higher borrowing costs on house prices and buyer demand knocked confidence.
Just below one-third of homes for sale were also listed for sale in 2023 but failed to find a buyer.
But an expected fall in mortgage rates this year, combined with rising sales volumes over the last six months, has boosted sentiment.
Experts think the Bank of England is likely to cut interest rates in the coming months, after headline inflation eased to 2.3 per cent in the 12 months to April 2024, down from 3.2 per cent in the 12 months to March.
The number of house sales agreed also rose by 13 per cent since this point last year, but stayed behind the level of supply – giving buyers the pick of the market.
The trend is expected to keep house price inflation in check. Zoopla’s latest index found yearly house price inflation is minus 0.1 per cent, meaning prices have fallen slightly over the last 12 months.
There has been an increase in house price inflation over the last quarter, at 0.4 per cent up, in response to more sales and firmer pricing, but this quarterly growth rate has slowed over the last month. The property website said it expects inflation to be flat for the year.
Richard Donnell, executive director at Zoopla, said: “The growth in the supply of homes for sale is evidence of renewed confidence amongst homeowners, some of whom delayed moving decisions in 2023.
“The quarterly rate of house price inflation has picked up in recent months as more sales are agreed and prices firm.
“The announcement of the election will slow the pace at which new sales are agreed while greater choice for buyers will keep house prices in check over 2024.
“It’s essential that those serious about moving in 2024 price their homes realistically if they want to achieve a sale.”
