Buyer activity is beginning to recover after the summer slowdown, with searches for homes now 7% higher than a year ago. But with sales agreed still down 6% and buyers’ purchasing power reduced by higher mortgage rates, accurate pricing and local expertise will be critical this autumn.
Searches for homes are 7% higher than a year ago, their strongest annual increase for 12 months
Sales agreed remain 6% lower than last year, although the gap is beginning to close
Higher mortgage rates have reduced buyers’ purchasing power by 9% since January
UK house price growth has slowed to 0.9%, down from 1.3% in June
Prices are flat or falling across much of southern England, while northern markets continue to record stronger growth
Buyers have plenty of choice, with 5% more homes for sale than a year ago
Agents who lead realistic pricing conversations will be best placed to turn returning demand into instructions and sales
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Home buyers have been returning to the housing market in growing numbers over the last four weeks following a summer slowdown caused by higher mortgage rates and political uncertainty.
Sales agreed remain 6% lower than a year ago, but the gap is starting to close. Buyers cannot wait indefinitely and searches for homes are now 7% higher than a year ago¹, their strongest level for 12 months.
The increase in searches is an early sign that more buyers are reassessing their options after the summer. Late August and early September also tend to see more asking price reductions as sellers adjust pricing to attract this renewed demand.
Importantly, searches are now higher than a year ago across every region and country of the UK¹for the first time since August 2025. The recovery is strongest in the South East (+8.9%) and East of England (+8.5%), while the North West (+0.7%) has seen the smallest increase.
Download the Zoopla House Price Index, August 2026 (PDF, 457kB)
Property type | Average house price May 2026 | Average house price June 2026 | Average house price July 2026 | Annual price change to July 2026 (£) | Annual price change to July 2026 (%) |
All property | £272,300 | £272,800 | £272,800 | £2,540 | 0.90% |
Flats/maisonettes | £192,700 | £192,200 | £191,800 | -£3,040 | -1.60% |
Terraced houses | £241,300 | £242,000 | £242,000 | £2,690 | 1.10% |
Semi-detached houses | £281,200 | £282,100 | £282,000 | £4,500 | 1.60% |
Detached houses | £457,900 | £458,300 | £458,100 | £4,950 | 1.1% |
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Average five-year fixed mortgage rates have risen from below 4% in January to around 4.8% today.
A buyer who could afford a £200,000 mortgage at the start of the year can now borrow around £182,000 for the same monthly repayment - a 9% reduction in buying power.
Alternatively, the average buyer would need to find an additional £18,200 deposit to buy the same home while keeping monthly mortgage repayments unchanged.
This cash amount varies between regions, reflecting the variation in house prices - buyers in London would need to add almost double the national average to their deposit (£35,500) while lower house prices mean those in the North East would only need an additional £10,200.
This is being reflected in house price growth across the country.
UK house price growth slowed to 0.9% in the 12 months to July, down from 1.3% in June, as reduced buying power and fewer sales put pressure on prices.
The impact is being felt most strongly across southern England. Average prices are 0.3% lower than a year ago in the South East and 1% lower in London.
Northern England and the Midlands continue to record stronger growth. Prices are 1.7% higher in Yorkshire and the Humber and 3.1% higher in the North West.
Northern Ireland continues to lead the UK, with annual house price growth of 5.4%, although growth is also beginning to slow.
For agents, these regional differences show why national averages only tell part of the story. Using local market evidence to explain pricing conditions will help agents set realistic vendor expectations, strengthen valuation conversations and win instructions based on achievable prices.
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Last month we predicted an autumn bounce after a slower summer, and the latest data suggest the first signs of this are now emerging.
Buyers are starting to return, but they have plenty of homes to choose from. A steady flow of new listings means there are now 5% more homes for sale than a year ago.
Mortgage rates have stabilised, but remain closer to 5% than 4%, meaning affordability will continue to constrain buyer budgets. With more properties available, buyers can be selective and negotiate more confidently.
For agents, the priority will be helping vendors understand that an increase in searches does not mean every property will attract interest. Homes still need to compete on price, presentation and value.
Agents who have realistic pricing conversations early will be best placed to convert the autumn uplift into instructions and sales. Well-priced homes will continue to attract buyers, while properties priced above local market conditions risk sitting unsold as competition increases.
This month’s data highlights four priorities:
Re-engage prospective movers: Use the recovery in searches as an opportunity to reconnect with buyers and homeowners considering selling
Lead with local evidence: Show vendors how prices, demand and available stock are changing in their specific market
Address affordability early: Qualify buyers carefully and help sellers understand how higher mortgage costs are influencing offers
Set realistic pricing expectations: Agree an achievable asking price from the outset rather than relying on a later reduction
Buyer interest is returning, but buyers have more choice and less purchasing power than they did at the start of the year. Agents who combine strong local insight with accurate pricing advice will be best placed to turn that interest into transactions.
Buyer activity is expected to improve through the autumn as more people return to their moving plans. However, the recovery is likely to be gradual and will depend on mortgage rates remaining stable.
House price growth is expected to remain modest, with northern England, the Midlands and Northern Ireland likely to show greater resilience. London and much of southern England continue to face greater affordability pressures.
The increased supply of homes for sale means buyers will retain greater negotiating power. Agents who use local evidence to guide vendors on price and manage expectations will be best placed to capture returning demand and convert it into sales.
The Zoopla House Price Index (HPI) tracks the change in achieved sales price of homes (not asking prices). The index uses sold prices, mortgage valuations and data for recently agreed sales with more input data than any other index. The methodology is designed to accurately track the change in pricing for UK housing. It’s revisionary and non-seasonally adjusted.
Market activity data covers the four weeks to 16 August 2026 and is compared with the same period in 2025
Mortgage rates are based on the average rate for a new 75% loan-to-value (LTV), five-year fixed mortgage across large banks
Mortgage affordability estimates assume a 75% loan-to-value mortgage over a 27-year term, comparing a five-year fixed rate of 4% in January 2026 with 4.8% in August 2026
We try to make sure that the information here is accurate at the time of publishing. But the property market moves fast and some information may now be out of date. Zoopla accepts no responsibility or liability for any decisions you make based on the information provided.
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