Buyer enquiries have fallen 13 percent year-on-year as rising mortgage rates and geopolitical uncertainty push more cautious homebuyers to adopt a wait-and-see approach, according to the latest Zoopla House Price Index.
However, sales agreed are proving more resilient, down just 2 percent compared to a year ago. The market is increasingly being supported by committed movers – buyers who already have mortgage offers in place or a clear need to relocate – rather than early-stage browsers.
Mortgage rates climb as conflict rattles markets
Average mortgage rates have increased by 0.4 percentage points in recent weeks, with many sub-4 percent deals being withdrawn as financial markets adjust to uncertainty over the inflation outlook. This follows Landlord Knowledge’s report on 1,700 mortgage products being pulled as lenders rapidly repriced in response to global events.
Richard Donnell, executive director at Zoopla, said the market remained active but was becoming increasingly reliant on serious buyers. “Some early stage buyers are adopting a wait and see approach but there is a sizable group of committed buyers who are pressing ahead with housing purchases,” he said.
“If mortgage rates stabilise at current levels we expect sales activity to continue to hold up well compared to last year. Further increases in borrowing costs could weaken demand and impact sales volumes later in the year.”
Regional picture shows widespread cooling
The gap between buyer enquiries and sales agreed is being replicated across the country, with buyer enquiries falling between 7 and 19 percent year-on-year depending on region. The North East and West Midlands have recorded the largest declines in active buyers, albeit from a high base compared to last year.
Sales agreed are holding up more consistently, with more modest declines in northern England. Wales, Yorkshire and the Humber, and London are seeing flat or slightly higher sales compared to last year.
The overall number of homes for sale has increased by 6 percent year-on-year, reflecting a continued desire among homeowners to move despite the uncertain backdrop. With landlord borrowing costs at 19-month highs, some landlords may be among those testing the sales market.
House prices hold steady
UK house price inflation is holding steady at 1.3 percent year-on-year, with little immediate impact from the recent weakening in buyer demand. Price trends remain uneven across the country, with growth strongest in more affordable areas. The North West recorded annual growth of 3.5 percent, while price falls across southern England have moderated in recent months.
Around a quarter of transactions are cash purchases, while many existing homeowners have built up equity and secured borrowing in advance, reducing the impact of higher mortgage rates. This is helping to support sales in the short term but also highlights growing reliance on buyers who are less sensitive to rate movements.
The Hometrack data – Zoopla’s research subsidiary – shows that for buyers, there is less competition and more choice. For sellers – including landlords exiting the market – homes are still selling, but buyers are more selective and price-sensitive. Setting a realistic asking price with the help of a local agent will be critical to securing a sale.
What this means for landlords
- If you’re considering selling: Buyer caution means pricing realistically from day one – overpriced properties will sit longer as fewer browsers are converting to serious enquiries.
- Watch for: Mortgage rate movements – if rates stabilise, demand may recover. Further increases could weaken the market heading into summer.
- Bottom line: Committed buyers are still active, but the pool is shrinking. Landlords exiting need to compete harder for their attention.
Editor’s view
This report confirms what many in the market already suspected – geopolitical uncertainty is translating directly into buyer hesitation. For landlords considering an exit, the window of strong buyer activity may be narrowing. Those who need to sell should focus on presentation and competitive pricing rather than waiting for conditions to improve.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 30 March 2026
Sources: Zoopla House Price Index, Hometrack
Related reading: Mortgage rates hit 5.5% as landlord borrowing costs reach 19-month high
