House buyer searches have seen a 7% increase across Britain compared to last year, with Zoopla reporting this rise across every region and country. This marks the first time such an increase has been recorded nationwide since August 2025, suggesting the start of an 'autumn bounce' in the market.
Despite the rise in searches, agreed transactions are still 6% lower than last year, though this gap has begun to narrow after a quieter summer period. Meanwhile, the availability of homes for sale has increased by 5%, providing more options for buyers.
Richard Donnell, executive director at Zoopla, noted that many buyers adopted a 'wait and see' approach over the summer due to higher borrowing costs and political uncertainty. Average mortgage rates have stabilised but remain closer to 5% than 4%, impacting affordability.
Zoopla also indicates that average five-year fixed mortgage rates have risen to around 4.8% from below 4% in January, reducing household buying power by 9%. This means a buyer previously able to afford a £200,000 mortgage might now only borrow about £182,000, requiring an additional £18,200 to their deposit on average to offset the higher cost.
House price growth slowed to 0.9% in July, down from 1.3% in June, with the average property valued at £272,800. Prices fell in London, the South West, the South East, and the East of England, while the North West, Scotland, and the North East saw increases. Northern Ireland posted the largest increase at 5.4%, though this was lower than the 7.6% recorded a year prior.