Housing market activity continues to grow alongside modest price inflation. Sellers looking to complete before the end of the year should speak to their agent about the best strategy to achieve a sale.

Key takeaways

• Buyer demand is currently 4% higher than this time last year, while sales agreed are up by 5%.
• Cutting the asking price slows the sales process, with properties taking more than twice as long to secure a buyer.
• September marks the start of the busy autumn selling season, making it vital to get pricing and strategy right now.

Average UK house prices: the last 3 months

As of July 2025 (data published in August 2025), the average house price across the UK stands at £270,000. This represents a rise of around 1.3%, or approximately £3,560, over the past year.

Looking at different property types:

• Flats and maisonettes have an average price of around £192,000, which is slightly lower than a year ago, down by just under £1,000, equating to a fall of 0.5%.
• Terraced houses are selling for just over £240,000 on average, an increase of £4,330, or 1.8% year-on-year.
• Semi-detached houses now average £278,000, showing the strongest growth, up by nearly £6,700, or 2.5% over the past year.
• Detached homes are priced at around £453,000 on average, up by about £4,400, which is a 1% increase compared with last year.

House price inflation stabilising at 1.3%

The housing market is busier than this time last year. Although buyer demand dipped slightly during the summer, it still sits 4% higher than a year ago, which in turn has pushed sales agreed up by 5%.

House price growth has slowed in recent months but now appears to have stabilised. Annual growth is currently 1.3%. This is below the 2.1% growth recorded at the start of the year, but stronger than the 0.6% rise seen 12 months ago.

The moderation in growth reflects increased supply, with 10% more homes on the market compared with last year, as well as ongoing affordability challenges, particularly in southern England.

Nevertheless, house prices are rising at a slower pace than average earnings, which are up by nearly 5%. This trend has been in place for almost 3 years, gradually making homes more affordable and helping to sustain both buyer demand and overall sales activity.

Time to agree a sale

The speed of sales offers a clear measure of market health and is closely linked to house price growth.

In northern England, where affordability is stronger and supply is tighter, homes are selling more quickly. In July, properties in the North West and North East typically went under offer in around 27 days. This is almost 23% faster than the national average of 35 days.

In southern England, sales are slower. Homes here took around 39 days to go under offer in July, which is 11% longer than the national average. This slower pace is helping to temper price inflation in the region.

Homes with incorrect asking prices take twice as long to sell

The time on market is measured from when a property is first listed to the point a sale is agreed (subject to contract). Completion of the legal process and moving in usually takes a further 4–6 months.

Homes priced correctly from the outset are attracting strong interest and selling within a reasonable timeframe. In the first half of 2025, 2 in 5 homes listed went on to sell, with 3 in 4 of these achieving a sale without needing a price reduction.

However, where the asking price is set too high and then later reduced, the property takes more than twice as long to find a buyer. With more homes now coming onto the market, setting the right asking price has never been more important.

Areas where sellers need to be cautious

Since the end of the stamp duty holiday in March, there has been a steady rise in the proportion of homes with reduced asking prices. In July, around 1 in 10 homes on the market had cut their asking price,  significantly above the 5-year average of 6%.

This underscores the importance of pricing accurately from the start and consulting an agent with in-depth local expertise. It also explains why house price inflation has been slowing.

September, which marks the start of the autumn selling season, is a crucial moment for sellers still waiting to find a buyer. Strategies at this stage often include lowering the asking price or boosting the visibility of a property listing to reach a wider audience.

What’s next for the UK housing market?

Demand for homes remains strong, with more people actively looking to move. However, buyers now have much greater choice in certain local areas.

Speculation over possible tax changes could influence higher-value markets in the short term. Proposals floated in the media include replacing stamp duty with an annual property tax for homes worth more than £500,000, and introducing capital gains tax for sellers of homes valued above £1.5m.

While such ideas are currently pre-Budget speculation, they highlight the ongoing debate about reforming property taxes. Abolishing stamp duty would be widely welcomed, but it generates over £10bn a year in revenue. Replacing this with an annual property tax would take around 10 years to balance the books, creating significant transitional and political risks.

Currently, tax-free gains on the sale of a main residence are a cornerstone of UK home ownership. Second-home owners and investors already pay capital gains tax. Media discussion has centred on taxing gains on the 4% of homes worth more than £1.5m. Such a shift would represent a major departure from existing policy and could have far-reaching consequences for the housing market.

For now, the likelihood of immediate change is low. However, reducing costs and removing barriers to moving should remain a government priority.

If you are considering to sell your property in this busy Autumn season, speak with our dedicated team today by calling 0116 266 9977!