Higher mortgage rates have contributed to a 9% annual decrease in sales agreed across the UK, according to Zoopla's latest House Price Index. The index also indicates that annual property price growth has slowed to 0.8%, marking the lowest rate since July 2024.
Average mortgage rates have reached 5.2%, the highest level in three years. This has added an estimated £150 per month to the average homebuyer’s repayments compared to the start of the year.
A quarter of homes listed for sale in September had already been on the market within the past year. The number of homes available for sale is 5% higher than a year ago, with six in 10 relisted homes having a lower asking price.
Flat prices have fallen for 15 consecutive months, though Scotland and the North East are exceptions, recording annual increases in flat values. The average UK home now costs £273,000.