Property sales fall as house price growth slows

Higher mortgage rates have helped drive a 9% annual fall in sales agreed across the UK, according to Zoopla’s latest House Price Index.

Also, a quarter of homes listed for sale in September have already been on the market within the past year.

The index reveals that annual growth in property prices has slowed to 0.8%, the lowest since July 2024.

Average mortgage rates have reached 5.2%, their highest in three years, adding £150 a month to the average homebuyer’s repayments compared with the start of the year.

Pricing homes for sale

Zoopla’s executive director, Richard Donnell, said: “While key measures of housing market activity are lower than last year, there is still plenty of demand for homes.

“Buyers are simply more cautious and selective about what they view and offer.”

He added: “Sellers who factor in local market conditions and seek detailed advice from their local estate agents on how to set the asking price, can still find a buyer relatively quickly.

“Getting the right price from the outset is essential.”

More homes for sale

The number of homes for sale is 5% higher than a year ago, and six in 10 homes returning to the market have a lower asking price, with relistings most common among flats and larger houses.

In London, a third of flats coming onto the market have been advertised before, compared with fewer than one in 10 in Scotland.

Around three-quarters of Scottish homes find a buyer within three months; in London, just three in 10 do.

Flat prices keep falling

Flat prices have fallen for 15 consecutive months, while the average UK home now costs £273,000.

Scotland and the North East are among the exceptions, recording annual increases in flat values while prices for this property type fall across most regions.

More affordable two- and three-bedroom houses generally attract stronger demand, according to Zoopla, while flats and larger family homes face tougher conditions, particularly in southern England.

The property website expects annual house price growth to slow to around 0.5% by December and forecasts 1.1 million sales during 2026, compared with 1.2 million last year.