The latest house price index from Zoopla reveals a resilient market in the face of ongoing conflict and higher mortgage rates.
Buyer enquiries have rebounded to their highest level since the Middle East conflict began, running at just 2% lower than last year. Sales agreed are 3% lower, with house price inflation steady at 1.3%.
Homes are selling as fast as last year across more than half of the UK’s regions, but London and the South East continue to experience a market decline, with longer selling times and lower prices.
Homes in Harrow have experienced the biggest increase in the time it takes to sell, up by 65% to 54 days, from 33 days a year ago.
Zoopla attributes the struggling London and South East market to the higher percentage of first time buyers, who are more sensitive to higher mortgage costs and face much higher stamp duty costs than elsewhere in England.
Zoopla’s data shows that four in five first time buyers in London pay stamp duty compared to one in 10 buyers in the rest of the country.
In price terms, London and the South East have seen prices fall by 0.2%, with Bournemouth, Cambridge and Brighton among the weakest performing markets, down 1.7%, 0.9% and 1.1% respectively.
By contrast, every city in Zoopla’s index with house prices increasing above 3% year on year is in the north of England. Burnley is up 5.3%, Blackburn up 5.2% , Liverpool up is up 4.5% and Barnsley is up by 4.3%.
Zoopla expects the divide to persist throughout the year.
Commenting on the figures, Propertymark CEO Nathan Emerson said: “On the ground, our agent members are reporting a market that’s holding together better than many expected, but with very different conditions depending on location and buyer type.
“Well-priced homes are still moving quickly, but in first-time buyer hotspots, especially across outer London, agents are seeing hesitation creep in as affordability pressures bite.
“What’s notable is the rebound in enquiries post-Easter, which suggests underlying demand hasn’t disappeared, it’s just more price-sensitive and cautious. For property professionals, this means sharper pricing strategies, clearer communication with sellers, and more support for buyers navigating higher upfront costs.
“This isn’t a stalled market, it’s a more selective one, and agents are working harder on behalf of buyers and sellers to keep transactions progressing.”
Richard Donnell, executive director at Zoopla, said: “Homes are taking just one day longer to sell than this time last year. That is a strong result given increased uncertainty and mortgage rates rising sharply in March. Buyer enquiries have rebounded after Easter and with mortgage rates starting to fall, we expect the market to remain active through the rest of the year.”
