The number of homes for sale has reached a new height as demand among house hunters “cools”, it has been revealed.

Zoopla said the shift in the property market - to what is known as a buyers’ market - has led to a loss of momentum in house price growth.

It explained that average values increased by 1.6% in the past 12 months to March this year, down from 1.9% at the end of last year. However, house price growth still remains higher than the 0.2% recorded a year ago.

End of stamp duty holiday

It means the average price of a home in Britain now stands at £268,000, an increase of £4,270 during the past year.

Zoopla attributed the cooling of the property market to the end of the stamp duty holiday and a seasonal slowdown during Easter. Stamp duty rates increased at the beginning of this month. Zero rate thresholds for main residences dropped from £250,000 to £125,000, while first-time buyer thresholds dropped from £425,000 to £300,000.

Zoopla added that uncertainty about the impact of US tariffs on economic growth will have increased caution among home buyers.

It said demand is 1% higher than a year ago, compared to 10% higher earlier this year.

However, the number of sales agreed has continued to increase. While there are currently 12% more homes for sale, there are 6% more sales agreed than a year ago.

Economic uncertainty

Richard Donnell, of Zoopla, said: "The housing market continues to see sellers listing their home for sale which is supporting continued growth in the number of sales.

“This reflects a group of determined movers who remain active despite a backdrop of economic uncertainty and shifting sentiment."

Toby Leek, of NAEA Propertymark, added: “Improved two-year mortgage products, greater borrowing power and sustained confidence are all playing key roles in helping raise the number of homes for sale and boost overall momentum within the housing market.

“Alongside the fact that the spring and summer months are proven to be historically busier times of the year, many of those who are waiting in the wings due to riding out current global economic uncertainty and the continued journey in interest rates cooling may be finding it difficult to resist the broad range of properties available coupled with their improved financial status.”