House price growth slowed to 1.8% in February, down from 1.9% in January, as the number of homes for sale outpaced sales, according to Zoopla’s latest House Price Index.
Zoopla found an 11% rise in homes for sale compared to last year, which strengthened the buyers’ market, while sales agreed rose only by 5%.
In the North West and Scotland, house prices grew above average, at 3% and 2.5%, respectively.
This contrasted with southern England and London, where prices stagnated or declined.
More listings were anticipated as double council tax rules on second homes were set to take effect in April, impacting areas like Truro and Torquay.
Static mortgage rates and higher Stamp Duty from April affected buyer power, with 80% of homebuyers and 40% of first-time buyers (FTBs) facing increased costs.
In London, buyer demand dropped by 3%, partly due to a Stamp Duty ‘hangover’ affecting FTBs.
Richard Donnell, executive director at Zoopla, said: “We expect the growth in sales agreed to continue rising at a steady pace over 2025 as more sellers, most of whom are also buyers, enter the market in the coming months.
“House price growth is set to moderate further as supply grows and the extra costs of stamp duty in England feed through into house prices.
“A slowing in house price growth is not a major concern although the market needs some growth in prices to encourage sellers to come to market and buyers to make realistic offers on homes for sale.”
Donnell added: “There is plenty of demand for homes but also lots of choice.
“Households looking to sell their home in 2025 need to be careful when setting their asking prices if they are to attract sufficient demand to agree a sale.
“It’s important to seek the advice of local estate agents to inform the most suitable pricing strategy for every home.”
