The UK housing market is seeing fewer agreed sales as higher mortgage costs make buyers more cautious, according to the latest House Price Index from Zoopla.
The number of sales agreed has dropped by 9% compared with last year, while annual house price growth has slowed to 0.8%, its weakest level since July 2024.
Mortgage rates have also climbed to an average of 5.2%, the highest level in three years. This has added around £150 a month to the typical mortgage payment compared with the beginning of the year.
Buyers Remain Cautious
Despite the slowdown in sales, Zoopla says there is still demand from people looking to buy.
Richard Donnell, executive director at Zoopla, said buyers have become more careful about which properties they view and the offers they make.
He said sellers who take local market conditions into account and speak to estate agents about appropriate pricing can still attract buyers relatively quickly.
Setting the right asking price from the beginning is particularly important in the current market.
More Properties Coming To Market
There are now 5% more homes available for sale than at the same point last year.
However, many properties returning to the market are being advertised at a reduced price. Zoopla found that six in 10 homes being relisted have lower asking prices than before.
Relisting is particularly common among flats and larger houses.
The trend is especially noticeable in London, where around one in three flats coming onto the market have previously been listed within the past year.
In Scotland, the proportion is below one in 10.
Regional Differences Continue
The speed at which properties find buyers varies significantly across the UK.
Around three-quarters of homes in Scotland sell within three months. In London, the figure is only around three in 10.
These differences reflect the varying conditions across regional housing markets, with some areas continuing to see stronger demand than others.
Flat Prices Continue To Decline
Flats remain one of the weaker parts of the market, with prices falling for 15 consecutive months.
The average UK property is now valued at around £273,000.
Scotland and the North East are exceptions, with flat prices in these regions recording annual growth while values have declined across most other parts of the country.
Zoopla says more affordable two and three-bedroom houses are generally attracting stronger demand.
By contrast, flats and larger family homes are facing greater pressure, particularly across southern England.
House Price Growth Expected To Slow
Zoopla expects annual house price growth to ease further to around 0.5% by December.
The property website is forecasting approximately 1.1 million property sales in 2026, down from around 1.2 million in the previous year.
The latest figures suggest that higher mortgage costs and cautious buyers are continuing to weigh on housing activity.
For sellers, competitive pricing and an understanding of local demand could become increasingly important as the market heads towards the end of the year.
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