Zoopla's latest House Price Index indicates a “hotting up” of the UK housing market, with house prices on track to rise by 2% in 2024.
Sales agreed are up 16% from a year ago, added the online property portal, while the average estate agent now has 33 homes for sale, the highest number in six years.
Buyers are paying 96.8% of the asking price, marking an 18-month high.
Richard Donnell, Zoopla's executive director, stated: “The housing market is starting to hot up after a stone cold 2023.
“There are clear signs of growing confidence amongst buyers and sellers with many more homes for sale and buyers paying an increased proportion of the asking price.”
The report highlighted a North-South divide, with prices rising in the North and falling in the South due to affordability issues.
Zoopla added that the new Labour government is not expected to impact the housing market significantly in the next 12-18 months, despite a stated target of building 1.5 million new homes within five years.
However, a rate cut by the Bank of England could boost confidence and activity.
Simon Gerrard, managing director of Martyn Gerrard estate agents, said: “Inflation has held steady at the Bank of England’s target of 2%, so there is a strong chance that the base interest rate will come down in August or September, which will fire the gun on property searches that have been on hold.
“From a wider perspective, it has also been of great relief to see the government prioritise building new homes.
“Supply is possibly the greatest challenge that the new government faces, and we will have to wait and see whether it can fulfil its promise to resolve this.”