The pace that house prices are growing has slowed in recent months amid a greater choice of homes for sale in areas such as southern England, according to a property website.
Speculation that the Government is considering overhauling property taxes could also see buyers delay decisions until after the autumn budget, experts said.
Average UK house prices grew by 1.3% over the year to July, Zoopla’s index showed.
This is below the 2.1% inflation rate recorded at the start of 2025, but higher than 0.6% a year ago.
The average price of a home sold in the UK is £270,600 – which is £3,560 more than a year ago, it found.
Zoopla said that slower price inflation was partly down to there being a greater choice of homes for sale – with 10% more on the market in recent weeks than the same period last year.
More homes on the market means sellers are more likely to be competing for a buyer and so are inclined to keep asking prices lower.
Coastal areas across the south of England had the most unsold homes on the market, Zoopla’s analysis found.
This included towns such as Truro, Exeter and Bournemouth where about a quarter of homes had been up for sale for more than six months – around a third higher than average for the time of year.
York, Torquay and Llandrindod Wells in Wales were also highlighted as markets with an above-average number of sellers.
In contrast, markets with a shortage of homes for sale include Dundee, Wolverhampton, and suburbs surrounding London and Northampton.
Richard Donnell, Zoopla’s executive director, said there was “plenty of demand for homes and more people are looking to move”.
“However, buyers also have much greater choice to choose from, especially across areas of southern England,” he said.
“There is a clear link between buyer choice and price inflation and how long it is taking homes to sell.
“Sellers need to understand local market conditions when considering how to market their home, setting the right price and how quickly they would like to sell.
“The risk of being too ambitious on price is your home taking more than twice as long to find a buyer – or not selling at all.”
Zoopla is predicting UK house price inflation to rise to between 1.5% and 2% over the rest of the year.
However, activity in the market could slow if buyers hold back until the Chancellor’s autumn budget statement later this year, the property portal suggested.
Reports earlier this month said the Treasury was considering plans to raise money from a tax on the sale of homes worth more than £500,000.
This could see a potential national property tax replacing stamp duty on owner-occupied homes.
Under the current framework, buyers pay stamp duty if they purchase property worth more than £125,000.