Three out of five homes listed for sale since January have yet to find a buyer, Zoopla’s latest house price index reveals, as agreed sales fell 7% year-on-year.
The decline is more modest in the Northern and Scottish regions where buyers are faced with fewer real estate options and the North West and Scotland both recorded a -4% fall in sales stock.
However, Wales (-12%), East Midlands (-11%), East of England (-10%) and South West (-10%), saw the biggest declines in agreed sales, while London (-9%) and West Midlands (-8%) also remained above average.
The West Midlands saw the biggest drop in consumer demand, down 30% YoY, closely followed by the North East at 29%.
The index also reveals that consumer demand has fallen by 15% year-on-year across the UK, with a combination of political uncertainty and higher borrowing costs hitting consumers differently across the country.
Zoopla’s data also shows that two- and three-bedroom homes are selling at the same pace as last year across the country, with dedicated movers still working.
One- and two-bedroom apartments remain a weak part of the market, with more than two-thirds of properties listed this year unsold.
With mortgage rates up to 5% in April, potential buyers face an extra £125 every month over the average mortgage, adding up to £1,500 a year.
However, the same rate hike hits consumers very differently depending on where they shop.
First-time buyers were also hit with those in London seeing a monthly increase of £232, almost three and a half times the £66 monthly increase faced by a first-time buyer in the North East.
But Zoopla highlights that it is good that loan rates have started to fall, falling in May to 4.8%.
Lower borrowing costs need to continue to improve affordability and support housing sales in the second half of 2026.
Meanwhile, fewer sales are starting to feed into rising UK house prices, which have eased to 1.4% YoY.
The latest inflation data shows sales contracted at the start of the year, before the full impact of higher prices was felt, meaning inflation is set to slow through the fall unless mortgage rates fall sharply and sales rebound.
The North East and North West are currently the best performing regions in England, seeing growth of 3.5%, while those in Scotland, where there is still a shortage in supply with fewer homes for sale than last year, are registering growth of 3%.
However, London is experiencing its ninth consecutive month of negative annual house price growth, sitting at -0.2% in May.
The South East is similarly down at -0.3%, which makes getting the asking price right critical and the difference between going and not going this year for sellers in the South.
Commenting on the latest trends and what this means for home buyers and sellers, Zoopla chief executive Richard Donnell says: “High mortgage rates have hit sales and pressured affordability for home buyers and increased political uncertainty.
“It’s a buyer’s market across the South at the moment, but enthusiastic sellers in the north of England and Scotland are still finding buyers at the pace of last year which shows that the housing market is not moving at the same pace.”
“The landscape can tell you a lot, and local market conditions vary across the country. The most important step, whether you’re buying or selling, is to talk to a local agent who knows what’s really happening on your street.”
Elsewhere, Propertymark chief executive Nathan Emerson says: “Economic and political uncertainty will always affect confidence, but people continue to move due to changing jobs, growing families, retirement and other life events that cannot simply be put on hold.”
“Property professionals continue to see healthy levels of inquiries and viewings, but many buyers are taking longer to commit and doing more research before making an offer. Confidence has softened rather than disappeared, making realistic pricing and local expert advice more important than ever.”
Today’s statistics also emphasize that there is no single national housing market. Conditions vary greatly from place to place, and local agents play an important role in helping buyers and sellers cope with changing market conditions and keep transactions moving forward.”
Former RICS residential chairman Jeremy Leaf adds: “The combination of too much space in the market at various prices, and continued uncertainty about the protracted war in Iran and the subsequent impact on the economy, looks dangerous when it comes to buyer and seller confidence.”
“Sales are taking longer and it’s increasingly difficult to make a commitment. However, a large number of agreed sales are continuing, albeit at a slower pace and with fewer price negotiations.”
“This may very well represent the ‘new normal’, looking forward, especially now that domestic political uncertainty is another factor to consider.”
