House sellers are being encouraged to price their properties competitively ahead of an expected autumn recovery after the UK housing market experienced a sharper-than-usual summer slowdown.

The latest House Price Index from Zoopla shows annual house price growth has eased to 1.3%, down from 1.7% a year ago, while sales agreed over the past four weeks are 9% lower than the same period in 2025.

Elevated mortgage rates and ongoing political uncertainty have dampened buyer confidence, contributing to weaker activity across most of the country.

Despite the slowdown, the average UK home has increased in value by £3,400 over the past year, Zoopla said, taking the average property price to £272,800.

However, performance varies significantly by region. The North West recorded the strongest cash gains, with average values rising by £7,100, while London saw average prices fall by £3,270.

The North East is the only region to buck the national trend, with sales agreed up 4% year-on-year. Zoopla said the region’s relatively affordable house prices have helped shield buyers from the impact of higher mortgage costs.

Buyers are also benefiting from greater choice, with the number of homes for sale increasing across eight of the UK’s 11 regions. The larger supply of properties has strengthened buyers’ negotiating position, helping to slow the pace of house price growth.

Mortgage rates remain a significant challenge for prospective buyers. Average rates eased from almost 5% in April to around 4.65% in June before edging back up to approximately 4.75% in July. Since the start of the year, higher borrowing costs have added an estimated £125 a month to repayments on a typical mortgage.

While most local markets have seen sales weaken, Zoopla identified Warrington, Hull and Dundee as standout hotspots, combining stronger sales activity with faster house price growth. In contrast, Bath, Oxford and Harrow have emerged as weaker markets, recording fewer sales alongside flat or falling prices.

Looking ahead, Zoopla expects activity to improve in September, which has historically delivered a seasonal uplift in agreed sales as sellers adjust asking prices to match buyer expectations. The company said homeowners hoping to move this autumn should ensure their properties are priced realistically now rather than waiting for the market to recover, although any rebound will depend on mortgage rates remaining stable.

Zoopla executive director Richard Donnell said: “This summer has seen a sharper slowdown than usual, with higher mortgage rates and political uncertainty both weighing on buyer confidence. But it’s not all one-way traffic, sales are still getting done, house prices are still rising in most of the country, and buyers have more room to negotiate than they’ve had in some time.”