Buyer demand cools as borrowing costs rise

The UK housing market has entered a slower summer period, with agreed property sales falling compared with the same time last year. Higher mortgage rates, political uncertainty and the usual seasonal slowdown have all contributed to fewer buyers actively entering the market.

Average mortgage rates have risen significantly since the start of the year, increasing the cost of borrowing for many households. This has naturally reduced affordability, particularly for first-time buyers and those looking to move to larger homes.

House price growth begins to ease

With fewer buyers competing for available properties, house price growth has slowed considerably across much of the UK. While values remain relatively stable overall, regional differences are becoming increasingly apparent.

Some areas continue to perform well, particularly in parts of Northern Ireland and the North West, where demand remains resilient. Meanwhile, parts of London and the South East have seen modest price declines as higher property values become more difficult for buyers to finance.

The increase in available homes on the market has also reduced the bidding wars that were common during recent years, helping to create a more balanced market.

Sellers may need to be realistic

Property experts suggest that sellers hoping to move this year should carefully consider their asking price. Historically, buyer activity increases during September as families return from holidays and aim to complete purchases before Christmas.

However, with many homes already remaining unsold since the spring, waiting until autumn to reduce an asking price could leave sellers competing with an even larger number of properties.

Pricing realistically from the outset may help attract committed buyers while competition is relatively lower.

Local markets continue to vary

Although the national picture points to a slowdown, housing markets remain highly localised. Some towns continue to record healthy demand and price growth, while others have seen transactions slow more noticeably.

This highlights the importance of obtaining advice based on local market conditions rather than relying solely on national headlines.

What this means for buyers

For buyers, the current market may present more choice and greater negotiating power than has been available in recent years. While mortgage rates remain higher than many became accustomed to, reduced competition can help offset some of the increased borrowing costs.

Anyone considering purchasing or remortgaging should review their options carefully, as lenders continue to adjust rates and products in response to changing market conditions.

Thinking about moving?

Whether you're buying your first home, moving house or looking to remortgage, speaking to an independent mortgage adviser before you start your search can help you understand exactly what you can afford and which lenders offer the most suitable options.

If your mortgage deal ends within the next six months, now is an excellent time to review your options and secure your next rate.