Property market sees a slump in buyer searches

The housing market has experienced a big summer slowdown, with property searches plummeting by 17.89% between 21 June and 21 July, compared to the previous month.

According to mortgage technology provider Twenty7tec, this decline equates to 273,296 fewer searches.

Worryingly, it also marks a drop that is more than four times steeper than the 4.35% recorded during the same period in 2024.

That makes it the most pronounced monthly fall in recent years.

Factors for search downturn

The firm’s commercial director, Nathan Reilly, said: “Several factors could be contributing to the downturn in searches.

“We saw the rush that the Stamp Duty changes brought in, with almost 160,000 fewer first-time buyer searches in the three months post change to before.

“This can include continued uncertainty around interest rates, high living costs and buyers adopting a ‘wait and see’ approach.”

He added: “For some, holidays may have simply taken priority over house hunting.

“But for others, affordability challenges are likely forcing a pause in activity while they reassess their budgets.”

Double-digit falls recorded

The data shows that no segment of the market escaped the downturn, with every price bracket registering double-digit declines.

Properties in the £250,000 to £300,000 range saw the sharpest drop, falling by 21.12%, while high-end homes above £500,000 dropped by 18.25%.

Even the first-time buyer segment, properties under £150,000, was not spared, with searches declining by 17.37%.

Despite the monthly slump, a closer look at annual trends reveals a more complex picture.

Homes priced between £250,000 and £300,000 have surged by 31.6% compared to July 2024, standing out as the only price band to show significant yearly growth.

Buyers are still looking

In contrast, lower-priced properties under £150,000 saw a 22.85% drop in searches year-on-year.

Mr Reilly said: “This tells us where the market energy is right now.

“People are still looking, but they’re increasingly focused on that middle segment.

“First-time buyers are under pressure from affordability constraints, while the top end of the market is more hesitant.

“It’s the typical family home that’s holding everything together.”

Matches Rightmove data

The data matches recent Rightmove findings which revealed a 1.2% (£4,531) drop in average asking prices to £373,739 in July.

That’s the largest monthly decline since its records began in 2002.

London saw the biggest regional price reductions, particularly for high-value properties.

However, buyer interest remains robust, with Rightmove noting a 6% rise in enquiries and a 5% increase in agreed sales compared to last year.