The housing market has seen a noticeable dip this summer, with a sharp 17.89% decrease in property searches between 21 June and 21 July, when compared to the previous month.
Figures from mortgage technology firm Twenty7tec reveal that this translates to 273,296 fewer searches carried out during that period.
What’s more concerning is that this drop is significantly larger than the 4.35% decline reported in the same timeframe last year.
In fact, it represents the most substantial month-on-month fall in property search activity seen in recent years.
Factors for search downturn
Nathan Reilly, the firm’s commercial director, suggested that a number of reasons may explain the recent drop in property searches.
He pointed to the noticeable decline following the Stamp Duty changes, where nearly 160,000 fewer first-time buyer searches were recorded in the three months after the changes compared to before.
Reilly noted that the ongoing uncertainty surrounding interest rates, along with the high cost of living, may be encouraging potential buyers to adopt a more cautious, ‘wait and see’ approach.
He also mentioned that for some people, summer holidays may have simply taken priority over looking for a new home.
However, for many others, affordability concerns are probably causing them to step back from the market temporarily as they take time to review their financial situation.
Double-digit falls recorded
The figures reveal that all areas of the housing market felt the impact of the recent slowdown, with each price range seeing a double-digit fall in activity.
Homes priced between £250,000 and £300,000 experienced the biggest monthly dip, dropping by 21.12%, while properties valued above £500,000 also saw a notable decline of 18.25%.
Even lower-priced homes, typically favoured by first-time buyers and costing under £150,000, weren’t immune, with searches down by 17.37%.
However, when looking at the broader yearly picture, the trend appears less straightforward.
Properties in the £250,000 to £300,000 bracket have actually seen a sharp rise in interest compared to July 2024, with a 31.6% increase—making it the only segment to show substantial annual growth.
Buyers are still looking
On the other hand, interest in lower-priced homes—those under £150,000—fell sharply by 22.85% compared to the same period last year.
Commenting on the figures, Mr Reilly explained: “This highlights where the current momentum in the market lies.
“Buyers haven’t disappeared entirely, but there’s clearly more attention being given to mid-range properties.
“Those looking to purchase their first home are finding it harder due to affordability issues, while activity at the higher end of the market appears more cautious.
“It’s the demand for standard family homes that seems to be keeping the market stable at the moment.”
Matches Rightmove data
The figures align with recent research from Rightmove, which showed that average asking prices fell by 1.2%—or £4,531—in July, bringing the typical price down to £373,739.
This marks the steepest monthly fall since the company began tracking prices in 2002.
The most significant price drops were seen in London, especially among premium properties.
Despite this, buyer demand appears resilient, as Rightmove also reported a 6% rise in enquiries and a 5% uptick in agreed sales compared to the same time last year.
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