Your monthly UK housing market update. Covering sold prices, asking prices, surveyor sentiment and what’s next for the property market.
Tax jitters hit London and the South, while affordable regions stay resilient.
HM Land Registry – Sold Prices
UK house price inflation slowed in July, easing to 2.8% from 3.6% in June. The average home now costs £270,000, which is £8,000 more than a year ago.
England saw prices rise 2.7% to £292,000, while Wales (2%) and Scotland (3.3%) also recorded steady gains. Northern Ireland led the pack with 5.5% annual growth, reflecting its relatively affordable market. Within England, the North East continues to outperform (with prices up 7.9%), while London sits at 0.7%.
Sales activity remains brisk: HMRC reported 96,000 property transactions in July, up 4.3% year-on-year. Regionally, England and Wales saw the biggest monthly jumps, while Scotland and Northern Ireland slipped slightly.
Mortgage approvals also edged up to 65,400, marking continued improvement. Although buyers are taking longer to commit, sentiment outside London and the South is firming, with prices growing at mid-single-digit rates.
Rightmove – Asking Prices
Asking prices nudged higher in August, with the average home now listed at £370,257. A rise of 0.4% (£1,517) from last month. However, prices remain 0.1% lower than a year ago, reflecting muted growth across much of the South.
Regional patterns are striking: listings in southern England are up 9% year-on-year, compared with just 2% elsewhere. More choice means sellers must stay competitive, especially with properties in the South taking an average of five extra days to find a buyer. Despite this, agreed sales are still 4% higher than last year nationwide, with the South up 3% and the rest of Great Britain up 5%.
Mortgage affordability continues improving too: the average two-year fixed rate has fallen to 4.52%, down from 5.03% a year ago. Buyers remain motivated, but whispers of potential new property taxes in the Autumn Budget are weighing on sentiment in higher-value markets.
RICS – Chartered Surveyor Sentiment
Surveyor confidence slipped further in August, with the latest RICS survey showing weaker demand and sales.
New buyer enquiries fell for the second month running, recording a net balance of -17%, while agreed sales dropped more sharply to -24% (from -17% in July). Looking ahead, near-term sales expectations are flat, and the 12-month outlook has cooled significantly. Just +1% expect growth, the weakest since October 2023.
House prices are also under pressure. The national balance fell to -19%, with East Anglia (-64%) and the South West (-46%) seeing the steepest declines. By contrast, Northern Ireland bucked the trend, reporting robust growth. Supply is also slowing, with new listings slipping into negative territory (-3%) for the first time in over a year.
Overall, surveyors expect small further price falls over the coming months, before stabilisation and marginal growth (+9%) by next summer.
Zoopla – Housing Market Outlook
Zoopla reports that speculation over potential tax changes in the Autumn Budget is weighing on higher-value homes, particularly those over £500,000. In London, where nearly 60% of sales fall into this category, activity has softened, with some buyers delaying decisions.
In contrast, the wider housing market remains resilient. Activity in more affordable areas is holding steady, and markets where homes average under £200,000 are recording the strongest price growth, up 2.8% on average. At the higher end, prices are barely shifting.
However, Zoopla warns that waiting for clarity could mean missed opportunities. With the typical move taking six to seven months, today’s buyers may see transactions complete well after any tax changes.
While speculation creates short-term caution, Zoopla expects the mainstream market to remain stable, with momentum holding outside the South and continued resilience in more affordable regions.
Express Index
For a full, comprehensive breakdown of current property market activity. Visit our Express Index here
Are you thinking of putting your home on the market?
We specialise in helping you get more for your property. Quicker, easier and with less stress.
You can call us any time on 0333 016 5458 where we can provide help, guidance and support.
Instant valuation – get a free 32-page instant valuation report here