The UK housing market is experiencing a sharper than usual slowdown this summer, marked by a decrease in sales, an increase in the number of properties available, and price declines in some regions. Recent data from property search platform Zoopla indicates that the number of homes sold in the past four weeks was 9 percent lower than the same period last year.

Industry experts attribute this cooling to a combination of factors including elevated mortgage rates, political uncertainty, and external events such as the World Cup and prolonged warm weather. Richard Donnell, executive director at Zoopla, noted that since January, rising interest rates have added approximately £125 per month, or £1,500 annually, to mortgage repayments for a typical UK home. He suggested many potential buyers without immediate moving needs are adopting a wait-and-see approach amid ongoing political shifts, including the recent appointment of Andy Burnham as prime minister, and geopolitical unrest in the Middle East.

This decline in sales has coincided with increased supply: Zoopla’s data shows that in eight out of the UK’s 11 regions, there are more homes on the market compared to the previous year. The greater inventory is giving buyers greater bargaining power, which in turn is putting downward pressure on prices, especially in southern England where property values tend to be higher and thus more sensitive to mortgage rate rises.

London has seen an average house price drop of £3,270 over the last 12 months, while the southeast recorded a decrease of £1,480 on average. By contrast, areas in the north such as the northwest have experienced price growth, with values rising by around £7,100 since last summer. Nationally, house price inflation stands at 1.3 percent annually, down from 1.7 percent a year earlier.

Zoopla identified Bath, Oxford, and Harrow as the top housing “cold spots” where sales and prices have stagnated. Conversely, Warrington, Hull, and Dundee were highlighted as “hot spots” where the market remains more active.

Despite the overall slowdown, Donnell emphasized that the market is not uniformly weak. Approximately three-quarters of local markets have seen sales decline over the past three months, but one-quarter continue to show growth in sales and prices. He expressed cautious optimism for a market rebound in September, provided mortgage rates remain stable. Historically, the housing market tends to experience increased activity in early autumn, following the summer holidays and ahead of the holiday season.