Apr

Higher mortgage rates fail to slow down home sales – Zoopla

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Higher mortgage rates fail to slow down home sales – Zoopla

Despite higher mortgage rates, the housing market remains resilient, with homes selling as fast as last year across more than half of UK regions.

Zoopla’s house price index reveals the average time to sell a home is just one day longer than last year at 33 days.

Northern England regions and Scotland are seeing the fastest price growth and shortest sales times, while every city in southern England is seeing price falls.

Market remains active

Richard Donnell, executive director at Zoopla, said: “Homes are taking just one day longer to sell than this time last year. That is a strong result given increased uncertainty and mortgage rates rising sharply in March.

“Buyer enquiries have rebounded after Easter, and with mortgage rates starting to fall, we expect the market to remain active through the rest of the year. Households who need to move are getting on with it, though market conditions vary widely between North and South.

“For sellers, the message is clear, well-priced homes are still finding buyers in the same time as last year across much of the country. For buyers, mortgage rates are drifting lower and there is greater choice of homes for sale.

“The best-value homes are moving quickly, particularly in northern cities and Scotland, whereas the room for negotiation is greater across southern regions.”

UK house price inflation holding steady

According to Zoopla, UK house price inflation is holding steady at 1.3%, compared with 1.8% a year ago, with the average UK home now worth £271,700.

The average home is taking almost a week longer to sell in London and more affordable commuter areas, with Harrow seeing the biggest increase, up 65% to 54 days. South East and East London, alongside Dartford, Peterborough and Slough, are also seeing longer sale times.

Scotland remains the fastest market in the UK at just 15 days, while northern regions are broadly in line with last year due to lower housing supply.

The North East is the strongest-performing region in Great Britain for house price growth at 3.2%, followed by the North West (3.1%) and Scotland (2.6%), while Northern Ireland leads the UK at 6.7%.

Liverpool is seeing some of the strongest city-level growth at 4.5%, while London and the South East are both seeing prices fall marginally by 0.2%.

Industry reaction to Zoopla house price index

Nathan Emerson, CEO of Propertymark, said: “On the ground, our agent members are reporting a market that’s holding together better than many expected, but with very different conditions depending on location and buyer type. Well-priced homes are still moving quickly, but in first-time buyer hotspots, especially across outer London, agents are seeing hesitation creep in as affordability pressures bite.

“What’s notable is the rebound in enquiries post-Easter, which suggests underlying demand hasn’t disappeared, it’s just more price-sensitive and cautious. For property professionals, this means sharper pricing strategies, clearer communication with sellers, and more support for buyers navigating higher upfront costs.

“This isn’t a stalled market, it’s a more selective one, and agents are working harder on behalf of buyers and sellers to keep transactions progressing.”

Tom Bill, head of UK residential research at Knight Frank, said: “The impact of the Middle East conflict on the UK housing market has not yet fully materialised.

“The disappearance of sub-4% mortgages, a looming inflationary hump caused by higher energy costs and a government reportedly considering responses like rent controls mean the impact will linger for much of this year. That will keep downwards pressure on prices and, to a lesser extent, transaction volumes.”

Jeremy Leaf, north London estate agent and a former RICS residential chairman, says: “Housing market activity is proving more resilient than we dared hope as war in the Middle East continues for longer than originally anticipated.

“However, the amount of available property in our offices – particularly flats – is keeping prices under control and resulting in more protracted transactions as buyers flex their muscles.

“Worries about the direction of travel for interest rates and the cost of living means more price-sensitive purchasers are taking their time before submitting offers in expectation the after-effects will linger for considerably longer even if hostilities end soon.”

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