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

UK Housing Market Remains Resilient as Sales Edge Up Despite Lower Demand

The UK housing market is demonstrating resilience, with agreed sales running 1% ahead of last year despite a 10% decline in overall buyer demand, according to the latest Zoopla House Price Index. Increased housing stock and modest house price inflation are contributing to continued activity, even as higher borrowing costs and economic uncertainty affect discretionary buyers.

The data shows that housing stock levels have risen by 3.4% year-on-year, offering buyers more choice. UK house price inflation stands at 1.5%, with the strongest growth seen in more affordable markets in northern England, Scotland, and Wales, where price growth ranges from 2% to 3.6%.

First-time buyer budgets have increased by 4.3%, indicating ongoing confidence among those committed to moving. Regional variations are evident, with London seeing an 8% year-on-year increase in agreed sales, despite largely flat house price growth. In contrast, affordability remains stretched in southern England.

The increased stock levels, now at their highest in over a decade, are giving buyers greater negotiating power. Transactions are taking longer, and sellers are more exposed to renegotiation or deals falling through. Mortgage approvals are reportedly improving, and homes are selling faster than earlier in the year as lenders become more competitive and mortgage rates begin to stabilise.

The market remains active despite softer demand, with growing supply and affordability pressures making pricing more competitive. Sellers who price realistically and understand their local market continue to attract interest, while buyers benefit from greater choice and negotiating power.