Home buyers are starting to return to the housing market following a subdued summer, with property searches increasing across every region of Britain for the first time in a year, according to Zoopla.
The portal’s latest House Price Index shows the number of people searching for homes has risen by 7% compared with a year ago, providing early signs of an autumn rebound in activity.
However, buyers are returning with significantly less purchasing power than at the beginning of 2026. Zoopla estimates higher mortgage rates have reduced buying power by around 9% since January, leaving the average mortgaged buyer needing to find an additional £18,200 for their deposit to keep monthly repayments unchanged.
Sales agreed remain 6% below last year’s level following the summer slowdown, although Zoopla says the gap is beginning to narrow.
MORTGAGE RATES BITE
Average five-year fixed mortgage rates have increased from below 4% in January to around 4.8%.
Zoopla calculates that someone able to afford a £200,000 mortgage at the beginning of the year while maintaining a particular monthly payment could now borrow around £182,000 for the same repayment.
The impact varies considerably by region. A London buyer would need an additional £35,500 deposit to offset higher mortgage rates, almost twice the national average, compared with £10,200 in the North East.
First-time buyers are particularly exposed because they typically rely on larger mortgages and longer repayment terms.
Despite the affordability squeeze, searches have risen across every region and country for the first time since August 2025.
The strongest increases have been recorded in the South East, up 8.9%, and East of England, up 8.5%. The North West has recorded the smallest increase at 0.7%.
BUYERS HAVE MORE CHOICE
Sellers have continued to bring properties to market, with the total stock of homes for sale now 5% higher than a year ago.
That additional supply is expected to keep a lid on price growth and strengthen buyers’ negotiating position during the autumn market.
Annual UK house price growth slowed to 0.9% in July, from 1.3% previously.
Prices are flat or falling across much of southern England, including a 1% annual decline in London and 0.3% fall in the South East.
The picture remains stronger further north. Prices are up 3.1% in the North West, 2.5% in the North East and 1.7% in Yorkshire and the Humber, while Northern Ireland leads with annual growth of 5.4%.
‘WAIT AND SEE’ BUYERS RETURN
Richard Donnell (main picture, inset), Executive Director at Zoopla, says: “Many buyers have taken a ‘wait and see’ approach over the summer months in response to higher borrowing costs and political uncertainty.
“The low point for activity was mid July around the time of the World Cup final. Since then we have seen a steady increase in the number of people searching for a home, assessing their options ahead of the post holiday rebound in sales market activity. This is a nationwide trend and the first time searches for homes are up across Britain this year.
“Average mortgage rates have stabilised but remain closer to 5% than 4% meaning affordability remains an important factor for many home buyers choosing their next home.
“Buyers have plenty of choice this autumn and will be able to make competitive bids for homes. Motivated sellers need to price carefully to attract interest and bids and seek the advice of local agents for the likely levels of demand and interest in their home as market conditions vary widely across the country.”
INDUSTRY REACTION
Nathan Emerson, CEO at Propertymark, says: “These figures suggest buyers are beginning to re-engage with the housing market after a quieter summer, with searches up across every region. But renewed interest should not be mistaken for a full recovery in transactions just yet.
“Affordability remains the key constraint. Higher mortgage rates are reducing buying power, while the additional £18,200 deposit needed to maintain repayments highlights the particular challenge facing first-time buyers.
“More homes available for sale is positive, giving buyers greater choice and helping keep price growth in check. But the regional picture remains mixed, reinforcing that the housing market is not one-size-fits-all.
“Local expertise will be crucial this autumn, helping buyers understand what they can realistically afford and ensuring sellers price their homes appropriately. The return of demand is encouraging, but affordability remains the biggest barrier to a sustainable recovery.”
BUDGET RUMOURS
Tom Bill, Head of UK Residential Research at Knight Frank, says, “The autumn bounce in housing market activity should be more noticeable than it was in the spring, but that’s not a particularly high bar.
“Many mortgage rates are a percentage point higher than they were before the Middle East conflict began earlier this year, but rates appear to have stabilised. A
“nother important factor is that the Budget rumour mill is quieter than last summer, which has encouraged people to act.
“If tax speculation increases from September, that could sap momentum from the market.”
INTENSE SPECULATION
Jeremy Leaf, north London estate agent and a former RICS Residential Chairman, says: “We are starting to see holiday returnees slowly drifting back but the market is not what it was just a few months ago.
“On the ground, modest rises in mortgage costs have reinforced the buyer’s hand and are resulting in lower offers, particularly for flats, many of which have remained unsold for some time. On the other hand, only relatively few sellers are recognising the new realities and negotiating as hard as they can to try to agree terms at what they regard as realistic.
“We know too, that listings will increase over the next few weeks bearing in mind a recent rise in appraisals which will further strengthen buying power.
“Looking forward, we don’t anticipate much change as speculation about potential Budget tax increases intensifies.”
‘TURNING A CORNER’
Nicky Stevenson, Managing Director of Fine & Country, says: “The most interesting part of today’s Zoopla data isn’t that annual house price growth has slowed, but that buyer interest appears to be turning a corner.
“After an unusually quiet summer, a 7% year-on-year increase in people searching for homes suggests buyers are beginning to re-engage with the market.
“Crucially, this increase is being seen across every region, which points to a broader shift in sentiment rather than a recovery confined to a handful of stronger markets.
“There is still a significant gap between looking and buying. Higher mortgage rates, affordability constraints and economic uncertainty mean many of these prospective buyers will take their time before committing. But in a market where confidence has been fragile, the return of people actively researching their next move is a positive early signal.
“For sellers, the message is more nuanced. Buyers have more choice than they did a year ago, with overall stock up 5%, so simply putting a property on the market is no guarantee of a quick sale. The days of optimistic pricing testing the market are becoming increasingly difficult. Properties that are correctly priced from day one, are much more likely to generate interest and stand out against the competition.
“The fundamentals also suggest there is a floor beneath the market. Transaction levels remain relatively resilient and mortgage availability has improved, while some lenders have started cutting rates. If borrowing costs continue to edge lower, even gradually, that could unlock some of the demand currently sitting on the sidelines.
“The big question now is whether that renewed search activity converts into offers and sales. If it does, we could see a healthier autumn market, but I expect competition for buyers to keep price growth modest and make local market knowledge, realistic pricing and good advice more important than ever.”
