The average UK mortgaged buyer now needs to find an extra £18,200 in deposit just to keep their monthly mortgage payment the same as it was in January, according to Zoopla’s latest House Price Index. The figure varies sharply by region — rising to £35,500 in London, against £10,200 in the North East. The driver is a jump in average five-year fixed mortgage rates, from below 4% in January to around 4.8% now, which Zoopla says has cut typical buying power by about 9%: a buyer who could previously afford a £200,000 mortgage at a given monthly payment can now borrow roughly £182,000 for the same payment. First-time buyers, who typically need larger loans over longer terms, are the most exposed.
Despite the affordability squeeze, Zoopla’s data shows early signs of an autumn rebound: home searches rose 7% year-on-year over the past four weeks — the first time searches have been higher across every UK region and country since August 2025 — and total stock of homes for sale is up 5% year-on-year, giving buyers more room to negotiate. Agreed sales, however, remain 6% lower than a year ago, though Zoopla says that gap is narrowing. Annual UK house-price growth slowed to 0.9% in July from 1.3% the month before, taking the average price to £272,800; prices fell 1% year-on-year in London and were essentially flat in the South West and South East, while the North West rose 3.1% and Northern Ireland led the UK at 5.4%.
“Average mortgage rates have stabilised but remain closer to 5% than 4%, meaning affordability remains an important factor for many home buyers choosing their next home,” said Richard Donnell, Zoopla’s executive director. Nathan Emerson, CEO of industry body Propertymark, cautioned against reading too much into the renewed search activity: “Renewed interest should not be mistaken for a full recovery in transactions just yet. Affordability remains the key constraint… the additional £18,200 deposit needed to maintain repayments highlights the particular challenge facing first-time buyers.”
References
Mortgage Soup – Buyers return but need £18,200 extra to offset mortgage rate rises
