The UK housing market is stuttering, with buyer demand plummeting by 15% year-on-year, according to a report from Zoopla. The property portal's data reveals sales agreed have dropped by 7% in June alone, amidst persisting uncertainty and soaring mortgage costs.
Mortgage rates, which peaked at 5% in April, are now placing an extra £125 per month burden on borrowers, amounting to nearly £1,500 annually. This crippling cost is particularly acute for first-time buyers in London, who face a hefty additional £232 monthly on their mortgage payments.
Regional disparities abound, with the South struggling to shift properties quickly while northern England and Scotland remain relatively resilient. "There's a patchwork of markets out there," said Richard Donnell, executive director at Zoopla. "While much of the South is experiencing a buyer's market, motivated sellers in the North are still finding buyers with relative ease." In fact, the North East has seen only a modest increase in monthly mortgage costs, around £69.
Zoopla predicts house price inflation will slow to 1% by the end of 2026, as prices hold firm in northern England and Scotland but plateau or dip slightly in London and the South East. "This is a classic case of local conditions trumping national trends," said Zoopla's Donnell.
Industry experts concur, with Tom Bill of Knight Frank warning that a summer of tax speculation could suppress demand for the second year running. Nathan Emerson, CEO of Propertymark, added: "Life events continue to drive property moves, so realistic pricing and expert local advice are crucial in these uncertain times."