Your monthly UK housing market update. Covering sold prices, asking prices, surveyor sentiment and what could be next for the property market.
HM Land Registry – Sold Prices
The housing market nudged upwards in May, with average UK sold prices rising to £269,000—£10,000 more than the same time last year. Annual house price inflation now stands at 3.9%, up from 3.6% in April.
Scotland and Northern Ireland lead the way, with prices up 6.4% and 9.5% respectively. Wales sits at 5.1%, while England saw more modest growth at 3.4%. Regionally, the North East posted the highest rise in England at 6.3%, while the South West recorded the slowest, at just 1.9%. Month-on-month, prices rose 1.1% (or 0.7% when adjusted for seasonality).
But the real shift came in transactions. Following April’s dip (thanks in part to Stamp Duty changes), sales bounced back by 25.1% in May. Mortgage approvals also ticked up for the first time since last year, rising to 63,000. All in all, there are cautious signs of returning momentum.
Rightmove – Asking Prices
This summer, sellers are more competitive with pricing—and it’s having an impact.
July saw the sharpest asking price drop of the year, with the average newly listed home down 1.2% (£4,531) to £373,709. London led the decline, where prices fell by 2.1%.
With more homes on the market than we’ve seen in a decade, sellers are pricing to secure interest—and it seems to be working. Agreed sales are 5% higher than this time last year, and buyer enquiries are up 6%. Year-on-year, asking prices are more or less flat, just 0.1% higher than July 2024.
But improving affordability is giving buyers more confidence: wages are rising, inflation is easing slightly, and mortgage rates are coming down. Rightmove’s tracker shows the average two-year fixed deal now at 4.53%. As a result, Rightmove has lowered its price forecast for 2025 from 4% to 2%.
RICS – Chartered Surveyor Sentiment
There are further glimmers of optimism in the surveyor world. According to June’s RICS report, buyer demand has crept into positive territory for the first time since December, with a net balance of +3%. Agreed sales are still negative at -3%, but that’s a noticeable improvement on the steep declines earlier this year.
Looking ahead, short-term expectations are cautiously optimistic (+6%), with more surveyors expecting market activity to rise. That said, the 12-month outlook has softened slightly, from +25% to +5%.
House prices remain fairly flat overall (down just -7% on the national balance), but regional differences are striking. While prices continue to dip in the South East, East Anglia and London, the North West, Scotland and Northern Ireland are showing far more resilience.
On the supply side, new listings have slowed slightly, at 3% (down from last month’s 7%). But appraisals are still up compared to last year—suggesting stock levels could hold steady into the autumn.
Zoopla – Housing Market Outlook
So, what’s next for the UK housing market in 2025?
According to Zoopla, we’re looking at a year of slow but steady progress. Sales are expected to rise by around 5% compared to last year, even though house price growth has been revised down from 2% to just 1%. While that might seem underwhelming, it’s not necessarily bad news. A calmer pace of growth gives buyers a chance to catch up, especially now that mortgage testing has eased and affordability is gradually improving.
Mortgage rates remain one of the sticking points. Many hoped we’d see cuts by now, but with inflation still proving sticky, most buyers can expect rates to hold between 4% and 5% for the foreseeable future. Even so, more deals are being agreed, and buyer demand is holding.
As long as confidence stays strong, this gentle pace could strike the right balance—keeping the market moving without pushing prices out of reach.
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