Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

Homebuyer Demand Falls 15% Year-on-Year, Majority of Homes Unsold After Six Months

Homebuyer demand has dropped 15% year-on-year, according to Zoopla’s latest house price index. Three in five homes listed for sale since January remain unsold after six months.

Higher mortgage costs and political uncertainty have contributed to a decline in households’ willingness and ability to move. The number of property sales agreed is now 7% below last year’s level.

Two- and three-bedroom houses are still selling at a similar pace to last year, while one- and two-bedroom flats are the weakest segment, with over two-thirds remaining unsold. Zoopla attributes this to first-time buyers, who are typically the main audience for these properties, stepping back from the market due to higher buying costs.

An increase in mortgage rates in April has added £232 to the average first-time buyer’s monthly costs in London, while in the North East, the increase is £66 per month. Across the UK, mortgage rates reached 5% in April, adding £125 per month to the average mortgage, or £1,500 per year. However, mortgage rates began to edge lower in May, reaching 4.8%.

Regional differences are notable. Of the 11 regions monitored by Zoopla, seven experienced a decline in buyer demand greater than the UK average of 15%. The West Midlands saw a 30% drop, the North East 29%, the East Midlands 22%, Wales 19%, and Scotland 18%. London had the lowest fall in demand at 12%.

House price inflation has slowed to 1.4% year-on-year. Prices are rising by 3.5% in the North but have been falling in London for nine consecutive months.

For letting agents and inventory clerks, these trends highlight ongoing challenges in the sales market, particularly for flats and in regions with the steepest demand declines. The data suggests that local market conditions vary significantly, and properties priced correctly are more likely to sell.