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

Zoopla Reports Rise in Home Searches Despite Drop in Buyer Affordability

Home searches across the UK have increased by 7% year-on-year, according to new research from Zoopla. This rise comes despite a 9% reduction in buyer purchasing power, attributed to higher home loan costs.

Zoopla’s data shows that the rebound in home searches is being seen nationwide, with every region and country experiencing an increase for the first time since August last year. 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 the smallest increase at 0.7%.

The report highlights that average five-year fixed mortgage rates have risen from below 4% in January to around 4.8%. As a result, a borrower who could previously afford a £200,000 mortgage can now only borrow around £182,000 for the same monthly payment. Zoopla noted that to maintain the same repayments, buyers would need to increase their deposits—by £18,200 on average, with London buyers needing nearly double that amount and North East buyers requiring an extra £10,200.

Despite the increase in searches, Zoopla reported that sales agreed are down 6% year-on-year. Meanwhile, the number of homes for sale is 5% higher than a year ago, giving buyers more choice in the market.

Zoopla stated that many buyers had adopted a ‘wait and see’ approach over the summer due to higher borrowing costs and political uncertainty, with activity reaching its lowest point in mid-July. Since then, there has been a steady increase in people searching for homes as the market heads into the autumn period.

The report also notes that average mortgage rates have stabilised but remain closer to 5% than 4%, keeping affordability a key concern for buyers. Zoopla advises that motivated sellers should price carefully to attract interest and seek advice from local agents, as market conditions vary across the country.

For letting agents and inventory clerks, the increase in home searches and higher stock levels may signal more movement in the sales and rental markets, with affordability pressures likely to influence buyer and tenant behaviour in the coming months.