House prices in Yorkshire: Luxury market slows as buyers hesitate
Demand for high-end homes is cooling across the UK, and Yorkshire is no exception, although the slowdown here appears less dramatic than in the South.
Data from property website Zoopla shows that enquiries for homes priced over £500,000 fell by four per cent in the five weeks to September 21, compared with the same period last year, while new listings were down by seven per cent.
At the very top of the market, demand for properties over £1m dropped by 11 per cent, with listings down nine per cent.
According to Zoopla, this contrasts with the broader market, where demand and supply remain stable, and prices in more affordable areas are rising faster.
In Yorkshire and the Humber, house prices have increased by 1.9 per cent over the past year. Sheffield has seen a 2.3 per cent rise to an average of £176,800, while Leeds is up 1.8 per cent to £215,800.
Tom Robinson, director at The Property Partnership Group in Boroughbridge, North Yorkshire, says the cooling is noticeable locally but less marked than in southern England.
“General uncertainty surrounding stamp duty land tax and higher mortgage rates are influencing demand at the top end of the market, where the market has generally slowed,” he adds.
"That said, sensibly priced, well-presented homes in good locations with no issues are still attracting interest, with buyers being more selective and price sensitive.
"Sellers need to take advice from professional and well-informed agents to ensure they start their marketing campaigns with a sensible guide price.”
Although Yorkshire has fewer £1m-plus homes than southern regions, the £500,000 to £800,000 bracket includes many family houses, barn conversions, and rural properties. In areas such as Harrogate, Ilkley, and parts of York, £500,000 is no longer considered a luxury, but buyers at this level are approaching purchases more cautiously.
Committed buyers remain, particularly for properties that reflect current borrowing costs and have no issues such as planning complications or costly renovations.
In urban areas, demand is strongest in the mid-market, where buyers see better value and quicker returns.
Richard Donnell, executive director at Zoopla, says the market has been more active than expected. “The housing market has experienced a sustained increase in market activity over the last 18 months as mortgage rates have stabilised.
"The market is on track for the most sales since 2022, but without rapid house price inflation.
"Pre-Budget speculation over possible tax change is a regular occurrence but this summer it has been bigger than usual, which has led some buyers and sellers to delay home moving decisions for homes priced over £500,000.
"The wider market remains largely unaffected.” He adds that “serious buyers” should remember it typically takes six to seven months to find and complete a purchase.
Kevin Shaw, national sales managing director at estate agent LRG, says: “The housing market has shifted in favour of buyers, with sellers increasingly willing to align with agents’ valuations and to negotiate on price.
"That balance is welcome for many purchasers, particularly first-time buyers who appear undeterred by April’s increase in stamp duty and have benefited from lower interest rates. At the upper end of the market, speculation over property tax has created hesitation.”
He expects confidence to return once the Budget has passed. “While tax speculation may leave 2025 relatively flat overall, the fundamentals are stable. A stronger spring market should emerge once fiscal policy is clarified and confidence returns.”
Bank of England figures show mortgage approvals dipped slightly in August, with 64,680 mortgages for house purchases approved, down from 65,161 in July.
Personal finance analyst Alice Haine says: “The drop in mortgage approvals suggests the housing market is beginning to stutter as it adjusts to the end of the stamp duty tax break and prepares for the autumn Budget.
"Higher purchase costs have resulted in more muted property price growth in recent months as buyers negotiate harder to keep purchases affordable and sellers adjust their expectations and price homes more competitively to secure a sale.”
Karim Haji, KPMG’s global and UK head of financial services, notes that households face growing pressure on disposable incomes as energy costs rise and inflation remains high, particularly for essentials like food and utilities. Despite this, household deposits with banks and building societies grew by £5.4bn in August.