The mortgage market has experienced a “dramatic summer slowdown” in property searches, a dip that was over four times greater than the decrease seen in 2024, data from Twenty7tec has found.
The data has revealed that every price band has seen a double digit-fall, but while activity has cooled across the board, demand for the average family home remains the market’s strongest anchor.
It detailed that between June 21 and July 21 2025, compared to May 20 and June 20 2025, total property searches fell 17.89 per cent, compared to a 4.35 per cent drop during the same period in 2024.
This represents the steepest monthly decline seen in recent years, with 273,296 fewer searches recorded.
The steepest falls were seen in the £250,000-£300,000 range, where searches dropped by 21.12 per cent, and at the very top of the market, where searches for homes over £500,000 fell by 18.25 per cent.
No price band was immune — every bracket experienced a double-digit decline, with first-time buyer territory (under £150,000) down 17.37 per cent.
Twenty7tec commercial director, Nathan Reilly, said: “Several factors could be contributing to the downturn in searches.
“We saw the rush that the Stamp Duty changes brought in, with almost 160,000 fewer first time buyer searches in the three months post change to before.
“This can include continued uncertainty around interest rates, high living costs, and buyers adopting a ‘wait and see’ approach.
“For some, holidays may have simply taken priority over house hunting. But for others, affordability challenges are likely forcing a pause in activity while they reassess their budgets.”
However, despite the month-on-month slowdown, Twenty7tec argued that the year-on-year figures tell a more “nuanced” story.
Searches for homes priced between £250,000 and £300,000 are up 31.6 per cent compared to July 2024, making it the only band to see significant annual growth.
All bands below the threshold recorded year-on-year declines, including a 22.85 per cent drop for homes under £150,000.
“This tells us where the market energy is right now,” Reilly added.
“People are still looking, but they’re increasingly focused on that middle segment. First-time buyers are under pressure from affordability constraints, while the top end of the market is more hesitant.
“It’s the typical family home that’s holding everything together.”
tom.dunstan@ft.com
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