Home buyer demand weakened in March as rising mortgage rates and uncertainty linked to conflict in the Middle East reduced confidence, according to property website Zoopla. Agreed sales fell by 2 percent compared with a year earlier, while buyer inquiries dropped by 13 percent as many potential purchasers adopted a 'wait and see' approach.

Despite softer demand, the number of homes for sale increased by 6 percent annually, reflecting a continued desire among homeowners to move. The market is being supported by committed buyers who have already secured mortgage agreements, as well as cash purchasers and homeowners with significant equity, making transactions less sensitive to higher borrowing costs.

House price growth across the United Kingdom remains modest at 1.3 percent annually, with stronger gains in more affordable regions such as the north west of England. However, Zoopla said the market is increasingly reliant on a smaller pool of serious buyers, even as overall activity remains steady in some areas including Wales, Yorkshire and the Humber, and London.