A growing number of property experts and estate agents are suggesting that the UK housing market is gradually shifting in favour of buyers, as pricing pressures build and sellers become more open to negotiation. Recent data and industry commentary point towards a softer market, where demand is still present, but buyers are increasingly able to take a stronger position when agreeing deals.
This view follows the latest Nationwide house price index, which reported a 0.6% fall in UK house prices in May. While the decline may appear modest, it has been enough to reinforce the idea that momentum in the housing market is slowing at a time when activity would usually be picking up.
According to Gareth Lewis of specialist lender MT Finance, property values are coming under noticeable pressure, with a significant number of valuations now landing below expectations. He explained that this reflects a cooling housing market, where valuers are taking a more cautious approach, while buyers are actively looking for better value and are increasingly prepared to negotiate on price.
This combination of cautious lending assessments and more assertive buyers is contributing to a more balanced, and in some cases buyer-favoured, market environment. In practical terms, this means sellers may need to adjust expectations if they want to secure a sale, particularly in areas where demand has weakened slightly.
Supporting this view, Mark Harris of mortgage broker SPF Private Clients noted that falling monthly house prices suggest that needs-based buyers are no longer willing to stretch beyond what they can reasonably afford. Instead, they are negotiating more firmly and avoiding overpaying, which is helping to put downward pressure on prices in certain segments of the market.
From a broader industry perspective, Tom Bill, Head of UK Residential Research at Knight Frank, highlighted that the slowdown has emerged at a time when the housing market would typically be gaining momentum. He suggested that higher borrowing costs are steadily eroding spending power, which is likely to weigh on house prices over the course of the year.
He also pointed out that mortgage rates agreed before recent geopolitical tensions gradually rolling out of the system could add further pressure. Looking ahead, he indicated that the outlook remains subdued, with limited house price growth expected in 2026. He added that ongoing uncertainty around government policy and economic direction could continue to restrict market activity.
Despite this, some experts believe the situation is not entirely negative. Nicky Stevenson of Fine & Country commented that buyers are still active in the market, but they are now more selective and sensitive to mortgage rates. This increased caution is helping to create a more realistic pricing environment, where sellers must be more competitive to attract interest.
She also suggested that if current economic and cost-of-living pressures ease, the slowdown in activity could prove temporary rather than long-lasting. In her view, the market is adjusting rather than collapsing, with behaviour becoming more disciplined on both sides.
Further insight comes from Nationwide’s Chief Economist, Robert Gardner, who explained that some loss of momentum was expected given recent global developments, including rising energy prices and wider geopolitical uncertainty. He noted that consumer confidence has weakened noticeably since these events, with sentiment falling to its lowest level since late 2023 before seeing only a slight improvement more recently.
Gardner also warned that economic growth may be weaker and inflation higher than previously expected this year, depending on how global conditions evolve. However, he emphasised that the UK housing market and wider economy have shown considerable resilience in recent years.
He pointed out that household finances remain relatively stable, with overall debt levels at their lowest compared with income for around two decades. In addition, many households have built up savings buffers, although he noted that these are not evenly distributed across all income groups.
He also highlighted that housing affordability had been improving prior to the recent slowdown, supported by strong income growth and a gradual easing in borrowing costs. While mortgage rates have risen again in recent months, he suggested that the impact on affordability has so far been limited.
Swap rates, which influence fixed-rate mortgage pricing, remain below the peaks seen in 2023 and are broadly in line with 2024 levels. This indicates that while conditions have tightened, they have not reversed entirely to previous high-cost borrowing environments.
Overall, the current data and expert commentary suggest that the UK housing market is in a phase of adjustment rather than sharp decline. Buyers are becoming more influential in negotiations, sellers are having to adapt to more realistic pricing, and lenders are responding to shifting financial conditions.
While uncertainty remains around interest rates, inflation, and broader economic policy, the market continues to show underlying resilience. For now, the balance of power appears to be tilting slightly towards buyers, with supply levels and affordability pressures giving them more room to negotiate than in previous years.
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