House sales are set to be lower than expected this year, a top housing expert has warned.

Richard Donnell, Executive Director of Zoopla, said: “Sales agreed over the year look set to be lower than we expected at the start of the year.”

He added that the last six months of 2025 were “very weak” due to Budget uncertainty impacting sales.

“The outlook for the housing sales market in the second half of this year depends on just how far mortgage rates fall back,” he said.

Mortgage affordability

He went on to explain that higher mortgage rates have forced buyers to hit the pause button.

He said: “Average mortgage rates hitting 5% in April, having started the year at 4% has led to a decline in mortgage approvals for home purchase as buyers adopt a wait and see approach to mortgage rates which are now declining once again.”

His comments follow the publication of the Bank of England’s latest mortgage data.

It revealed that net mortgage approvals for house purchases decreased to 56,200 in May, below an average of 63,300 during the past six months.

Approvals for remortgaging also decreased, to 33,000 in May, from 51,200 in April.

Concerns remain about the direction of travel for mortgage rates and the cost of living.”

Jeremy Leaf, north London estate agent and a former RICS residential chairman, says:  “Mortgage approvals are arguably the most important of all the housing market data, as they are forward, rather than backward facing, so are a reliable indicator of future activity.

“On the ground, we are finding it is not just the numbers which are down, but the time genuine buyers are taking before playing their mortgage offer card.

“Concerns remain about the direction of travel for mortgage rates and the cost of living which is delaying decision making as the war in Iran drags on.

“Looking forward, we expect more of the same at best particularly now that political uncertainty is adding to this caution.”