Activity in the housing market is stronger than it was 12 months ago, defying the usual seasonal slowdown seen during the summer, according to Zoopla’s latest House Price Index.
Buyer demand is 11% higher, accompanied by an 8% increase in agreed sales. There are currently a record number of homes on the market, an average of 37 per estate agent branch, with more buyers actively looking to finalise deals before the start of the school holidays and the August slowdown.
Recent changes to the way lenders assess mortgage affordability have been a catalyst for the increased activity, Zoopla said.
“Home buyers using a mortgage can now borrow up to 20% more, at the same rate, than they could just three months ago,” it said.
“This has encouraged more buyers to try and secure a home purchase before the summer, and is why buyer demand and sales agreed are higher across all regions and countries of the UK.”
Higher stamp duty puts a dampener on the market
While the market is seeing increased activity, higher stamp duty costs in England and Northern Ireland, following the end of temporary reliefs in April, are creating a significant drag on price inflation.
A total of 83% of homeowners now pay stamp duty on new purchases, compared to less than half (49%) before April 2025. The extra cost is up to £2,500 per sale, around one per cent of the average UK home price.
Buyers will be looking to reflect these increased buying costs in what they offer for homes, ultimately impacting agreed sale prices, Zoopla said.
“Stamp duty costs also vary between existing homeowners and first-time buyers. Given that it is a tax based on property value, stamp duty costs have a greater impact on buyers in southern England than other areas, contributing towards an additional drag on price inflation.
“First-time buyers are charged lower rates and tend to buy cheaper homes; however 41% are now liable for stamp duty compared to just 19 per cent before April 2025. The greatest impact is on those buying in London and higher value parts of the South East. Based on the average first-time buyer price in London the stamp duty cost is £6,100 compared to £0 before April.”
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