The UK housing market faces an earlier and sharper summer slowdown, with rising property listings and subdued buyer interest amid economic uncertainties and higher mortgage costs, despite signs of improving consumer confidence.
The latest signals from the housing market suggest a summer slowdown that is arriving earlier and biting harder than usual. Zoopla said agreed sales are running 9% below last year, with higher mortgage costs and political uncertainty prompting many would-be movers to hold off. That caution comes despite a useful backdrop for the sector: GfK’s consumer confidence barometer has improved sharply from recent lows, hinting that households are feeling a little less gloomy about the broader economy even if that optimism has not yet translated into more property transactions.
The gap between sentiment and activity matters because housing decisions are often made months before a sale completes. GfK’s survey is closely watched as an early gauge of whether people feel able to commit to major purchases, and the recent rebound in expectations has raised the possibility of a later lift in moving plans. For now, though, the market appears to be taking its cue from caution rather than confidence, with summer distractions and a slower-than-normal seasonal pattern weighing on momentum.
One of the clearest reasons for the pause is the build-up of homes for sale. Zoopla reported that the number of properties coming to market has reached an eight-year high, with average stock levels per estate agent rising above previous years. A sizeable share of those listings had already been on the market in 2025 before being withdrawn, as uncertainty over the Budget and talk of possible tax changes pushed some sellers to wait. The effect has been strongest in London and the South East, where higher-value homes are more common and buyers are more sensitive to tax risk and borrowing costs.
That imbalance is feeding through to prices and demand. Zoopla said buyer interest is still below last year’s level, although it remains above 2023 levels, while house price growth has slowed markedly across southern England. The average UK property price slipped slightly in the autumn data, and annual growth has softened to just over 1%. Even so, the wider market has not stalled completely. Zoopla says nearly 350,000 homes, worth more than £100bn, remain in the sales pipeline, pointing to a substantial volume of transactions still working their way through the system. Buy-to-let activity has also held up better than owner-occupier demand, helped by lower mortgage rates and a modest recovery in lending for investors.
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