Mortgage search activity saw an abrupt summer cooldown last month, with demand falling more than four times faster than during the same period last year, according to new data from mortgage technology platform Twenty7tec.

The firm recorded a 17.89% drop in total property searches between 21 June and 21 July 2025, compared with the previous month. That equates to 273,296 fewer searches, in sharp contrast to the 4.35% decline seen during the same period in 2024.

Every property price band saw a double-digit monthly decline in search volumes. The steepest falls were in the £250,000–£300,000 range, down 21.12%, and at the top of the market where homes priced over £500,000 saw an 18.25% fall. Entry-level properties also suffered, with searches for homes under £150,000 down 17.37%.

Nathan Reilly, commercial director at Twenty7tec, said a combination of factors could be responsible for the sharp retreat.

“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,” he said.

“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.”

Despite the month-on-month cooling, annual comparisons paint a more mixed picture. Search activity in the £250,000–£300,000 range is up 31.6% compared with July 2024, the only segment to show significant year-on-year growth.

ANNUAL DECLINES

Meanwhile, all price brackets below that threshold posted annual declines, including a 22.85% drop for homes under £150,000.

“This tells us where the market energy is right now,” Reilly said. “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.”

The analysis comes as Rightmove reports its steepest ever July fall in average asking prices since records began in 2002. The average UK asking price dropped by 1.2% – or £4,531 – to £373,739, with London seeing the sharpest regional decline and the largest reductions concentrated in top-end properties.

Yet there are signs of resilience beneath the surface. Rightmove also reported a 6% increase in buyer enquiries and a 5% year-on-year rise in sales agreed. And while overall search volumes are down, the annual decline is marginal at just 1%, with more than 1.5 million property searches recorded over the past 30 days.

“The volume of activity in the £250k–£300k range tells us this isn’t a market that’s flatlining,” Reilly added. “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.”