Your monthly UK housing market update. Covering sold prices, asking prices, surveyor sentiment and what could be next for the property market. Here’s what’s been happening as we move into the busy late spring season.
HM Land Registry – Sold Prices
Sold prices across the UK are still on the up, with average house price inflation reaching 5.4% in the twelve months to February 2025—up from 4.8% in January. The average home now costs £268,000, around £13,000 more than this time last year. England saw average prices climb to £292,000 (up 5.3%), Wales to £207,000 (up 4.1%), and Scotland to £186,000 (up 5.7%). Northern Ireland outpaced the rest of the UK, with a 9% rise taking average prices to £183,000.
Regionally, the North West led the way in England with 8% annual growth, while London was slowest at just 1.7%.
Despite cautious sentiment—highlighted by the Bank of England’s latest Agents’ report—sales activity remains robust. February saw 108,000 property transactions, 28.1% higher than a year ago. However, mortgage approvals dipped slightly for the second month running, hinting that some buyers may be holding back for now.
Rightmove – Asking Prices
Asking prices hit yet another record high over April, rising by 1.4% (£5,312) to an average of £377,182. This hefty increase comes despite a decade-high number of homes for sale and the recent rise in stamp duty costs. Encouragingly, the market took tax changes in its stride. Most movers went with purchases even if they missed the stamp duty deadline—and the number of agreed sales falling through remained steady.
Buyer demand is 5% higher than last year, and new listings are up by 4%, despite clear regional differences. The Midlands and Northern regions are setting new price records, while the South East and South West lag behind. London also hit a record high but could see volatility ahead, given global economic pressures.
Looking forward, affordability could ease if the Bank of England cuts rates sooner than expected, starting in May.
RICS – Chartered Surveyor Sentiment
March’s RICS survey paints a more cautious picture of the housing market. Buyer demand slipped during March, with a headline net balance of -32%—the weakest figure since September 2023. Agreed sales were also down, and near-term transaction expectations turned negative, suggesting a quieter early summer ahead.
However, there’s still a silver lining. Longer-term, confidence holds up: 11% of surveyors expect sales volumes to rise over the next year, even if this is down compared with earlier surveys.
House price growth appears to be flattening, with the net balance easing to +2% from stronger figures earlier in the year. Scotland and Northern Ireland are notable exceptions, where prices remain resilient. Even so, twelve-month price expectations are still positive, with a net balance of +39%.
While the number of new listings continues growing (+6%), the pace is slowing. Overall, the market seems to be adjusting to wider economic uncertainties rather than facing sharp declines.
Zoopla – Housing Market Outlook
Zoopla’s latest outlook suggests we’ll see slower house price growth through the rest of 2025, but a steady rise in sales. Price increases are expected to hover around 1% to 1.5%, with transaction levels forecast to climb 5% year-on-year—provided sellers remain realistic about asking prices.
Despite ongoing economic uncertainty, the market has held up well, and the growing number of homes for sale shows many homeowners are still keen to move.
One factor that could give the market a welcome boost is a potential change in how lenders assess mortgage affordability. Currently, buyers are “stress tested” against rates of 8–9%, even though typical five-year fixes are around 4.5%. If those tests ease to pre-2022 levels (around 6.5%–7%), buyer purchasing power could jump by as much as 20%. That’s likely to support stronger sales rather than spark big price gains, helping rebalance supply and demand.
Express Index
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