House sellers are now accepting offers that are, on average, £16,000 lower than the asking price, according to Zoopla.
The property website noted that the average asking price for a home is £367,000, and advised sellers to be "realistic with their expectations on price" as the market picks up following the Easter break.
Buyers are also finding themselves with more options, as the number of homes on the market has increased by 13 per cent compared to last year, Zoopla’s data shows.
Recent adjustments to mortgage affordability calculations by some lenders have enabled certain buyers to borrow more, which Zoopla suggests is helping to drive sales growth.
The North West of England is currently experiencing the most significant price increases in the country. Rising home values and rents in major cities like Manchester and Liverpool are pushing demand into neighbouring areas, thereby increasing house prices, Zoopla added.
It said that Blackburn has seen 5.8 per cent annual house price growth, Wigan has seen a 4.4 per cent annual rise and Birkenhead has recorded a 4.1 per cent annual increase in house prices.
An increased number of homes for sale in southern England is significantly boosting buyer choice and keeping price growth in check, the website said.
It said there are 21 per cent more homes for sale in the South West than a year earlier, 17 per cent more in London and 15 per cent more in the South East.
Widened choice, along with affordability constraints, explains why house price growth is less than 1 per cent across the regions of southern England, from 0.5 per cent in the South East to 0.9 per cent in the South West, Zoopla said.
There are just 3 per cent more homes for sale in the North West of England and 5 per cent more in Scotland than a year ago. House prices in Scotland have seen 2.9 per cent annual growth on average.
Richard Donnell, executive director at Zoopla, said: “There are more sales and stronger house price increases in northern regions of England and Scotland, where homes are more affordable. In southern regions of England, affordability continues to weigh on price inflation and the number of sales being agreed.
“Sellers and buyers need to adopt different tactics based on where they live across the UK; however, all sellers need to keep their feet on the ground and be realistic on pricing expectations.
“We expect sales to keep rising over the second half of the year, with UK home values on track to be 2 per cent higher by the end of the year.”
Martin Bennett, owner of Blackburn-based Crown Estates and Lettings Agents, said: “Business is booming in Blackburn, with increased demand for properties both at the lower and top end of the market.
“From my experience, properties that are priced correctly are going under offer within two weeks of being listed, while it’s not uncommon to have 10-plus potential buyers on the first day of viewings.”
Tom Bill, head of UK residential research at Knight Frank said: “Buyers can see there is a healthy supply of property on the market this spring, which means they have become choosier.”
Matt Thompson, head of sales at London-based estate agent Chestertons, said: “There has been a stark uplift in agreed sales in May and as buyer demand remains strong, we also expect a busier-than-usual summer market.”
Sarah Coles, head of personal finance, Hargreaves Lansdown said: “There are now plenty of (mortgage) deals priced at under 4 per cent, which opens up affordability for so many more buyers.”
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