UK house price growth is being dragged lower as buyers have a growing choice of homes for sale. 

This is according to Zoopla’s latest House Price Index.

It says UK house price growth has slowed to 1.4%, down from 2.0% earlier this year with home values actually falling in parts of London and southern England. 

The average UK house price is £268,400, which is £3,960 higher than a year ago. 

Zoopla says a high number ofpeople are listing their home for sale with a view to finding a buyer and moving home in the next year. The average estate agent has 37 homes for sale, compared to 32 last year.  

There’s been a 6% increase in sales agreed compared to a year ago.

But it adds there’s a clear link between house price growth and the change in the number of homes for sale over the last year, with lower price growth in markets which have seen the greatest increase in homes for sale. This boosts choice, re-enforcing the buyers market. 

In London, the South East and South West regions of England the number of homes for sale is 16-19% higher than a year ago, while house prices are barely rising, with under 0.5% growth over the last year. 

In contrast, northern regions, the West Midlands and Scotland have registered a smaller increase in supply, creating an element of scarcity and driving above-average price growth of two to three per cent. 

The portal says affordability and the level of house prices are also important factors impacting price growth. The higher the price the greater the income needed to buy. The latest Zoopla House Price Index shows there are modest house price falls (-0.2 per cent) in areas with an average property value of over £500,000. 

These markets account for 8% of UK homes and are concentrated in pockets in inner London and southern England. Prices are over 1% lower over the last year in the West Central London (WC, -4.3%) and West London (W, -1.3%) postal areas alongside Torquay (TQ, -1.7%) and Truro (TR, -1.3%) in the South West.

In contrast, house prices are 2.7% higher in more affordable markets with average house prices below £200,000, and 1.9% higher in markets priced between £200,000 and £250,000. Together, these markets cover 50% of homes. 

House price growth is currently fastest, at over 3.5% per annum, in parts of the North West of England and Scotland including Wigan (WN, 4.3%), Falkirk (FK, 3.8%) and Blackburn (BB, 3.6%) postal areas.

In addition to affordability factors, tax and policy changes aimed at second homeowners and landlords are leading to weaker demand and more sales by these owners, which is compounding the impact on house price growth at a localised level.