Despite rising mortgage rates, the UK housing market has shown remarkable resilience, with homes selling almost as quickly as last year across many regions. Recent data from Zoopla highlights regional disparities in price growth and sales times, reflecting varied market conditions between northern and southern England as well as Scotland.
Housing market activity remains robust
Zoopla’s latest house price index reveals that the average time to sell a home is now 33 days, just one day longer than the same period last year. This is a strong indicator of market stability, especially considering the sharp increase in mortgage rates experienced in March.
Richard Donnell, executive director at Zoopla, commented, “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.” He noted that buyer enquiries have bounced back following Easter, and with mortgage rates beginning to ease, the market is expected to remain active throughout the year.
Donnell emphasised that households needing to move are proceeding despite the challenging environment, though conditions differ significantly between the North and South of England. “For sellers, the message is clear, well-priced homes are still finding buyers in the same time as last year across much of the country. For buyers, mortgage rates are drifting lower and there is greater choice of homes for sale,” he added.
He also pointed out that the most competitively priced properties are selling quickly, particularly in northern cities and Scotland, whereas buyers in southern regions have more room to negotiate.
Regional variations in price growth and sales times
UK house price inflation remains steady at 1.3%, down slightly from 1.8% a year ago, with the average property now valued at £271,700. However, this national figure masks significant regional differences.
Scotland continues to have the fastest market, with homes selling in just 15 days on average. Northern England also maintains brisk sales, largely due to limited housing supply. The North East leads house price growth in Great Britain at 3.2%, followed closely by the North West at 3.1% and Scotland at 2.6%. Northern Ireland tops the UK with a 6.7% increase.
In contrast, every city in southern England is experiencing price falls, with London and the South East both seeing marginal declines of 0.2%. London and its commuter belts are also witnessing longer sale times, with Harrow showing the largest increase in time to sell—up 65% to 54 days. Other areas such as South East and East London, Dartford, Peterborough, and Slough are similarly affected.
Liverpool stands out with strong city-level price growth of 4.5%, reflecting the broader trend of northern cities outperforming their southern counterparts.
Industry perspectives on current market conditions
Nathan Emerson, CEO of Propertymark, observed that the market is holding up better than many anticipated, though conditions vary widely by location and buyer type. He noted, “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.”
Emerson highlighted a post-Easter rebound in enquiries, suggesting that demand remains but is more cautious and price-sensitive. He advised property professionals to adopt sharper pricing strategies, communicate clearly with sellers, and support buyers facing 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,” he said.
Tom Bill, head of UK residential research at Knight Frank, pointed to external factors yet to fully impact the market, including the ongoing Middle East conflict, the disappearance of sub-4% mortgages, rising energy costs, and potential government interventions such as rent controls. He predicted these influences would continue to exert downward pressure on prices and, to a lesser extent, transaction volumes throughout the year.
Jeremy Leaf, a north London estate agent and former RICS residential chairman, remarked on the market’s unexpected resilience amid prolonged geopolitical tensions. He noted that the availability of properties, particularly flats, is helping to keep prices in check but also leading to longer transaction times as buyers negotiate more aggressively. Leaf added, “Worries about the direction of travel for interest rates and the cost of living means more price-sensitive purchasers are taking their time before submitting offers in expectation the after-effects will linger for considerably longer even if hostilities end soon.”
What this means for landlords
For landlords, the current market dynamics suggest that well-priced properties remain in demand, especially in northern regions and Scotland. However, in southern England, where prices are falling and sales are slower, landlords may need to adjust rental expectations and marketing strategies accordingly.
The cautious approach of buyers and the increased negotiation room in southern areas could translate into longer void periods or the need for more competitive rental offers. Conversely, landlords in northern cities might benefit from quicker tenant turnover and stronger rental growth prospects, reflecting the robust sales activity and price increases in those regions.
Overall, landlords should monitor regional market trends closely and remain flexible to respond to shifting buyer and tenant behaviours driven by mortgage rate fluctuations and broader economic uncertainties.
Source: Based on reporting from Property118
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Source: www.property118.com
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