The number of mortgage searches conducted on the Twenty7tec platform fell by 17.89% between 21 June and 21 July this year, suggesting a cooling of the market.
The decline in searches was compared to activity between 20 May and 20 June this year, and indicated a steeper decline in searches on the 4.35% dip seen the same period last year.
Twenty7tec said this was the steepest monthly decline seen in recent years, with 273,296 fewer searches recorded.
The biggest drops were seen in the £250,000-300,000 range, where searches declined by 21.12%. Meanwhile, searches for mortgages against homes worth more than £500,000 fell by 18.25%.
There was also a decline at the lower end of the market, with searches for homes under £150,000 falling by 17.37%.
Nathan Reilly, commercial director at Twenty7tec, 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.
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“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.”
Annually, mortgage searches for homes priced between £250,000 and £300,000 increased 31.6%, the only tier to see a notable year-on-year growth.
All bands below this saw annual declines, including a 22.85% fall for homes under £150,000.
Reilly added: “This tells us where the market energy is right now. 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.”
He said: “The volume of activity in the £250,000-300,000 range tells us this isn’t a market that’s flatlining. Instead, we’re seeing a refocus of demand – one shaped by changing affordability, mortgage rates, and life stage needs. If that momentum continues, it could provide some much-needed stability through the second half of the year.”
