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As we move through spring 2025, the UK property market continues to showcase resilience and adaptability amidst a dynamic economic and political landscape. With inflation easing, interest rates showing signs of stabilisation, and lending criteria gradually becoming more accessible, the housing sector remains an area of keen interest for buyers, sellers, and investors alike. Using data from the latest Rightmove and Zoopla House Price Index reports, here is a comprehensive overview of current trends, what they mean for the market, and what we might expect in the months ahead.
House prices
Rightmove’s House Price Index for April 2025 reveals a 1.4% monthly increase in the average asking price of homes, bringing it to a record high of £377,182. This notable rise comes even as the number of homes on the market reaches its highest level in a decade, suggesting that buyer demand remains strong across much of the country. Particularly, the Midlands and northern regions continue to see new price records, reflecting robust local economies and continued interest from both first-time buyers and families seeking more space. Areas such as the South East and South West are seeing more subdued growth, indicative of affordability ceilings being reached and buyer hesitancy in higher-priced markets.
Photo by Pete F on Unsplash
Zoopla’s latest figures corroborate these trends, reporting an average UK house price of £268,000 as of March 2025 – a 1.6% annual increase. Detached houses now average £450,000, while flats remain stable at around £191,700. This stabilisation at the lower end of the market may be attributed to improved lending conditions and a renewed interest in urban living, especially from younger professionals re-entering the market.
Supply and demand
One of the most significant shifts in the current property market is the balance between supply and demand. Compared to the same period last year, there has been a 12% increase in the number of homes available for sale. This expansion of inventory has been welcomed by prospective buyers, who now have greater choice and bargaining power.
Interestingly, despite a seasonal dip in buyer enquiries, sales agreed are up by 6%, signalling that well-priced properties in desirable locations are still in high demand. Buyer demand overall is now just 1% higher than last year, suggesting that while the frenzy of the pandemic-era market has cooled, a core level of steady demand persists. The market is evolving towards a more balanced state in which neither buyers nor sellers have a dominant advantage, allowing for more realistic pricing and negotiation strategies.
Mortgage affordability
Another positive development supporting the housing market is the easing of mortgage affordability assessments. Lenders have started to relax stress testing criteria, resulting in a 15%–20% increase in potential borrowing power for some buyers. This change, combined with falling mortgage rates, is giving more people the opportunity to step onto or move up the property ladder.
The average fixed-rate mortgage has dropped by around 1.2% since this time last year. For first-time buyers, this translates into monthly savings of roughly £100 on repayments, a significant amount in today’s cost-of-living climate. These changes have not only made homeownership more achievable for a broader demographic, but they are also providing current homeowners with more attractive remortgaging opportunities, thus supporting broader economic stability.
Photo by Jakub Żerdzicki on Unsplash
Looking ahead
Looking ahead, analysts at Zoopla forecast a continued softening of house price growth, with expected rises hovering between 1% and 1.5% for the rest of the year. While these figures may seem modest, they represent a healthy stabilisation in contrast to the volatility of recent years. More importantly, the volume of transactions is expected to increase by around 5% compared to 2024, suggesting that market activity will remain buoyant.
Rightmove anticipates that the resilience of the UK property market will be tested further by global economic uncertainties and political developments, including interest rate decisions from the Bank of England and global trade shifts. However, with strong fundamentals, such as continued demand, increased supply, and more accessible financing, the market is well positioned to weather any temporary disruptions. Estate agents are optimistic that spring and summer 2025 will offer favourable conditions for both buyers and sellers, with pricing trends becoming more predictable and transaction times improving.
Balanced and sustainable
The UK property market as of spring 2025 remains both dynamic and promising. With prices rising moderately, mortgage conditions improving, and supply expanding, we are witnessing the development of a more balanced and sustainable housing environment. For anyone considering a move, whether buying, selling, or investing, now is an opportune time to take advantage of the evolving market conditions. As always, working with a knowledgeable and experienced estate agent, such as Harding Green can help you navigate the changes with confidence and clarity.
If you’re thinking about moving and want to understand how the current property market could influence your decisions, feel free to contact us for expert advice and local insight. Call us on 020 3375 1970.
