The UK housing market continues to show resilience in June 2025, with a balanced mix of rising sales, growing supply, and steady, though a modest house price growth. According to the latest data from Zoopla, we’re seeing the fastest rate of sales being agreed in four years, even as the pace starts to level off with the arrival of the summer slowdown.

Increased Supply Driving Buyer Choice

One of the most striking features of the current market is the increase in homes available for sale. With 14% more properties on the market compared to this time last year, buyers are enjoying greater choice, which is contributing to more sales being agreed. Buyer demand is also on the rise, up by 7%, while the number of sales agreed has increased by 6% over the past four weeks alone.

However, more sales activity doesn’t necessarily mean soaring house prices. In fact, the opposite appears to be true. Annual house price growth now sits at 1.4%, up from 0.3% this time last year, but down from the 2% increase recorded in February. The average UK house price now stands at £268,400, a modest rise of £3,690 year-on-year.

A Market Sensitive to Affordability

Buyers remain highly sensitive to price, with the cost of living and higher interest rates continuing to limit affordability. Although UK earnings are rising at a rate of around 5% per year, inflationary pressures mean interest rates are unlikely to be cut significantly in the near future. This financial backdrop is restraining house price growth, despite healthy levels of buyer interest.

Affordability is also playing a key role in shaping regional trends. In more affordable areas, particularly where the average home costs less than £200,000, house prices are rising at a faster pace, up by around 2.7% annually. Meanwhile, in markets priced between £200,000 and £250,000, growth is slightly lower but still stronger than the national average at 1.9%.

At the other end of the spectrum, pricier markets are seeing weaker performance. In areas where the average home exceeds £500,000, prices have actually fallen by 0.2% over the past year. These more expensive regions now account for just 8% of all UK homes, and are seeing both affordability issues and reduced demand weigh down on prices.

Regional Variation Tied to Supply Levels

The link between supply and price growth is clearer than ever. In regions such as London, the South East, and the South West, where the number of homes for sale has risen by as much as 19% compared to last year, house price growth has slowed to below 0.5%.

In contrast, areas with only a modest increase in available homes, such as parts of the North of England and the West Midlands, are seeing annual price growth of between 2% and 3%, supported by continued demand and less stock.

Some of the fastest price growth is being recorded in traditionally more affordable locations, including Wigan, Falkirk, and Blackburn, where home values are rising by more than 3.5% annually. These areas also managed to avoid house price falls during the interest rate surge of 2023 and early 2024, underscoring their relative stability.

Meanwhile, modest price falls have been recorded in high-value pockets such as West Central London, Torquay, and Truro, where a combination of local taxes, policy changes targeting second homeowners, and stretched affordability is reducing demand.

Time to Sell: Fast in Some Areas, Slower in Others

The average time to sell a home in the UK is currently 45 days unchanged from June 2024.

It’s also worth noting that over one in five homes currently on the market have remained unsold for more than six months. This reinforces the importance of pricing your home correctly if you're planning to sell. In today’s market, overpricing a property can significantly extend the time it takes to find a buyer and may ultimately require a reduction anyway.

What Sellers Need to Know

If you're looking to sell in 2025, it’s essential to have a realistic view of your property’s value. Buyers are still active and there is genuine appetite to move, but pricing is a critical factor. In high-value areas in particular, competition is strong and buyers are cautious. A well-thought-out marketing strategy, combined with accurate pricing, will be key to securing a sale.

Choosing the right estate agent who understands the dynamics of your local market can also make all the difference. It may come down to a decision between selling quickly and achieving your ideal price, but either way, understanding the current market conditions will help guide your choices.

Looking Ahead

The outlook for the remainder of 2025 remains broadly positive. The market is on track to see 5% growth in the number of completed sales this year, supported by improving mortgage affordability and sustained buyer demand. However, house price increases are expected to stay within the 1–2% range, with regional variation depending heavily on affordability and supply levels.

For buyers, the wider range of available homes and better mortgage deals are creating real opportunities. For sellers, being flexible on price and working with an experienced agent will be crucial to achieving success in today’s more balanced and price-sensitive market.