UK Housing Market Activity Ramps Up Despite Weaker House Price Forecast

Strategic Insights -

The UK housing market is experiencing increased activity compared to summer 2024, with buyer demand 11% higher and agreed sales 8% higher compared to the same period last year. However, Zoopla's house price forecast for 2025 has been halved, with the website attributing this to buyers factoring in increased stamp duty costs. The average UK house price is £268,400, up 1.3% from the same period last year.

Key Takeaways:

  • Buyer demand is 11% higher compared to the same period last year, with agreed sales 8% higher.
  • Zoopla's house price forecast for 2025 has been halved, with the website citing increased stamp duty costs as a major factor.
  • The average UK house price is £268,400, up 1.3% from the same period last year.
  • Scotland, Wales, and northern England are experiencing faster house price inflation, typically between 2% to 3% annually.
  • Southern England is seeing the weakest price inflation, ranging from 0.2% in the South East and London to 0.3% in the South West.
  • Truro, Torquay, and Exeter are registering some of the biggest price falls outside of London, with declines of 1.3%, 1.2%, and 1.1% respectively.
  • More homes for sale, particularly across southern England, is re-enforcing a buyer's market, keeping price rises in check.
  • Recent changes to the way lenders assess mortgage affordability have been supporting housing market activity.

Statistics:

  • Buyer demand is 11% higher compared to the same period last year.
  • Agreed sales are 8% higher compared to the same period last year.
  • The average UK house price is £268,400 as of June 2025.
  • House price growth is up from 0.4% last June, but has nearly halved from the 2.1% seen just six months ago in December 2024.
  • Scotland, Wales, and northern England are experiencing faster house price inflation, typically between 2% to 3% annually.
  • Truro, Torquay, and Exeter have registered price falls of 1.3%, 1.2%, and 1.1% respectively as of June 2025.

Sources:

  • Zoopla: Buyers factoring in increased stamp duty costs, leading to a halved house price forecast for 2025.
  • Zoopla: UK average house price is £268,400 as of June 2025, up 1.3% from the same period last year.
  • Zoopla: Scotland, Wales, and northern England are experiencing faster house price inflation, typically between 2% to 3% annually.
  • Financial Conduct Authority (FCA): Recent changes to the way lenders assess mortgage affordability have been supporting housing market activity.