Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.
Zoopla Reports 7% Rise in UK Property Searches as Buyers Return
Property searches on Zoopla have increased by 7% year-on-year over the past four weeks, marking the first time in a year that all UK regions have seen a rise in activity. This uptick follows a summer slowdown and signals the start of an autumn rebound, despite ongoing affordability challenges for buyers.
The South East recorded the strongest growth in searches at 8.9%, followed by the East of England at 8.5%. The North West saw a smaller increase of 0.7%. However, higher mortgage rates have reduced buyers’ purchasing power. Average five-year fixed mortgage rates have risen from below 4% in January to around 4.8%. According to Zoopla, a buyer who could previously borrow £200,000 while keeping monthly repayments unchanged can now borrow only around £182,000. To offset the impact of higher rates and maintain the same monthly payments, the average buyer would need an additional £18,200 in deposit funds. In London, this figure rises to £35,500, while buyers in the North East would need an extra £10,200.
Sales agreed remain 6% below last year, but the gap is narrowing as market activity picks up. The supply of homes for sale is 5% higher than a year ago, providing buyers with more choice and helping to keep price growth subdued. Annual house price inflation slowed to 0.9% in July, down from 1.3% in June. Prices fell by 1% in London and 0.3% in the South East, while the North West recorded 3.1% growth.
Zoopla’s executive director, Richard Donnell, noted that buyers had taken a “wait and see” approach over the summer but are now reassessing their options as market activity is expected to increase in the autumn. Mortgage rates have stabilised but remain close to 5%, keeping affordability a key concern.
North London estate agent Jeremy Leaf observed that while more buyers are returning after the summer, the market is not as strong as it was a few months ago. Modest rises in mortgage costs have led to lower offers, particularly for flats, and only a few sellers are adjusting their expectations. Leaf also noted that a recent rise in appraisals is likely to increase listings in the coming weeks, which could further strengthen buyer power.
Source: Mortgage Strategy