UK housing market sees 7% rise in property searches

Property searches in Britain have increased by 7% year-on-year, marking the first time since August last year that searches have risen across every region. According to data from Zoopla, this rebound follows a quiet summer period where many buyers adopted a ‘wait and see’ approach due to political uncertainty and rising borrowing costs.

Despite the increase in interest, buyer affordability has been significantly impacted. Higher mortgage rates have led to a 9% drop in buying power compared to January levels. To maintain the same monthly repayments, the average buyer would need to increase their deposit by approximately £18,200. This requirement is higher in London, where an additional £35,500 is needed, and lower in the North East, where an extra £10,200 is required.

While searches are up, sales agreed have decreased by 6% year-on-year. The market currently offers more choice, with 5% more homes for sale than a year ago. House price growth slowed to 0.9% in July, down from 1.3% in June. Regional price trends varied, with declines in London and the South, while price rises were noted in Scotland, Northern Ireland, and the North West.