HOMEBUYERS are shrugging off the looming election as market activity jumps higher than the same point last year.
Home values are now on track to rise 1.5% higher by the end of 2024, £3,900, according to the latest data from property site Zoopla.
In comparison wage growth was measured at 6% in May, helping to level up affordability.
New sales agreed are 8% higher and demand is up 6% while the amount of homes for sale is up by fifth compared to a year ago, according to Zoopla.
Overall, the average house price in May stood at £264,900, according to Zoopla, which is unchanged from a year earlier.
I'm a property expert - my guess for the cheapest time to buy a home this year
And is expected to rise by £3,900 to £268,800 by the end of the year.
As is typical for summer months, market activity is down month-on-month with sales agreed falling across all regions from May.
The biggest monthly drop is in the North East, followed by the West
Midlands.
But an expected cut to interest rates by the Bank of England in the coming months is predicted to boost buyer activity to lift values.
Markets believe a cut in rates could come as early as August.
Analysts at the site say that UK house prices are currently 8% over-valued but will be ‘fairly valued’ by the end of the year.
This is thanks to rising incomes and longer mortgage terms which are helping to improve affordability.
Richard Donnell, executive director at Zoopla says: “The housing market continues to adjust to higher borrowing costs through modest house price falls and rising incomes.
"Buyers using mortgages are also relying on longer mortgage terms to gain that extra few percentage points of buying power to afford a
home.
"The general election campaign has had a limited impact on market activity although the seasonal summer slowdown is arriving.
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"Sales agreed continued to increase and more homes for sale means more buyers looking to move in the second half of the year.
"The timing of the first cut in the base rate is a key moment and will give a boost to both market sentiment and sales activity.
"Overall we expect house prices to be 1.5% higher over 2024.”
Regionally, house price growth in the south of England is expected to lag behind the rest of the UK, according to Zoopla.
Price falls are greatest in the Eastern region and
South East, with Canterbury in Kent topping the list with the biggest price fall.
However, prices are rising by up to 3.3% in Northern Ireland and 1.5% in the North West region, with Sunderland seeing a 5.2% price increase.
How to buy your first home
Getting on the property ladder at all can seem like a daunting task but there are schemes out there to help first-time buyers have their own home.
Lifetime ISA - This is a Government scheme that gives anyone aged 18 to 39 the chance to save tax-free and get a bonus of up to £32,000 towards their first home.
You can save up to £4,000 a year and the Government will add 25% on top.
Shared ownership - Co-owning with a housing association means you can buy a part of the property and pay rent on the remaining amount.
You can buy anything from 25% to 75% of the property but you're restricted to specific ones.
Mortgage guarantee scheme - Available for first-time buyers and those who've owned a property before who have a minimum 5% deposit.
It can be used to buy any type of home so long as you don't pay more than £600,000 for it.
By providing a guarantee that the government will cover some of a lender's losses if a borrower can't afford to repay their mortgage and the home is repossessed - more lenders are prepared to lend up to 95%.
