Britain's housing market has seen its highest supply of homes for sale in eight years, a trend expected to limit house price increases for the remainder of 2024,

according to recent research.

Property website Zoopla reports that the average estate agent now has 31 homes for sale, marking a 20% increase compared to the same time last year and the highest level since 2016. This equates to approximately £230 billion worth of homes on the market, as more sellers re-enter the housing sector.

Many homeowners delayed selling in the latter half of last year due to concerns over higher borrowing costs impacting house prices and buyer demand, Zoopla noted. Nearly one-third of the homes currently for sale were also listed in 2023 but did not find buyers.

However, an expected decrease in mortgage rates this year, coupled with rising sales volumes over the past six months, has improved market sentiment. Experts predict that the Bank of England will likely cut interest rates in the coming months, following a reduction in headline inflation to 2.3% in the year to April 2024, down from 3.2% in March.

The number of agreed house sales has increased by 13% since this time last year, although supply still outpaces demand, offering buyers a wide selection of homes. This trend is anticipated to keep house price inflation under control. Zoopla's latest index shows a slight annual house price deflation of 0.1%, indicating a small decrease in prices over the past 12 months.

Quarterly house price inflation has risen by 0.4% due to more sales and firmer pricing, but this growth rate has slowed over the last month. Zoopla predicts that house price inflation will remain flat for the year.

Richard Donnell, executive director at Zoopla, commented, "The increase in the supply of homes for sale reflects renewed confidence among homeowners, some of whom delayed moving decisions in 2023. The quarterly rate of house price inflation has picked up as more sales are agreed and prices firm. However, the upcoming election will likely slow the pace of new sales, and greater choice for buyers will keep house prices in check throughout 2024. Those serious about moving in 2024 need to price their homes realistically to achieve a sale."