Mid-2025 UK Property Market Update: What Buyers, Sellers & Investors Need to Know

By Harsh Mayavanshi
Real Estate Consultant, Peaksons Properties Ltd
Date: 1st August 2025

Introduction

As we progress through 2025, the UK property market is sending mixed signals. While national house price growth is showing signs of slowing, the volume of sales and buyer demand remain strong. This balancing act between tempered optimism and steady activity suggests a more normalised—and potentially strategic—market environment.

At Peaksons Properties Ltd, we’re closely monitoring these shifts to guide clients through opportunities with clarity and confidence.

💷 Slower Price Growth, Stable Market

Latest data from Zoopla reveals that average UK house prices have increased by 1.3% year-on-year, with the average home now valued at £268,400. Meanwhile, Nationwide reported a 0.8% monthly decline in June, the largest since 2023. Analysts including Savills and Zoopla have now revised their 2025 house price growth forecasts to 1%, reflecting broader economic adjustments.
[Sources: Zoopla (2025), Nationwide (2025), Savills Forecast (2025)]

Despite this, long-term forecasts remain robust, with an anticipated 24.5% growth by 2029, underscoring the resilience and appeal of UK property.

👉 Key takeaway: The market is stabilising rather than shrinking—meaning it's a more informed and strategic time to make property moves.

📈 Activity Levels Remain Healthy

The volume of activity remains a bright spot:

• 11% increase in buyer demand year-on-year

• 8% rise in sales agreed

• An average of 37 homes listed per branch, the highest in over a year
  (Source: Mortgage Professional UK, July 2025)

Additionally, borrowing power has improved. Changes to affordability criteria have allowed many buyers to borrow up to 20% more, increasing market confidence.

👉 Key takeaway: Buyers have more options and financing capacity. Sellers who adapt their pricing and presentation strategies are reaping rewards through faster transactions.

🌍 Regional Shifts in Performance

The regional story is increasingly diverse:

• Strong growth: Northern Ireland, Wales, and the North of England (2–7.8% YoY increases)

• Cooling trends: London and the South East, where higher-value areas have seen minor declines

👉 Key takeaway: Investors are gravitating toward more affordable, higher-yielding areas. Sellers in premium markets should prepare for more price-sensitive negotiations.

🏷️ Stamp Duty and Buyer Behaviour

Following the end of temporary stamp duty relief in April 2025, over 83% of buyers now incur tax, shifting behaviour:

• Many buyers now negotiate £2,000–£3,000 off asking prices to offset stamp duty

• Some pandemic-era buyers are re-listing homes with revised pricing

👉 Key takeaway: The market has rebalanced post-stamp duty, and buyers are more value-conscious. Sellers must be agile and well-informed to maintain traction.

🔮 Market Outlook: What Lies Ahead?

The outlook remains cautiously optimistic:

• 2025 forecast: +1% average price growth

• Affordability improving: Wages rising, lending flexibility increasing

• Interest rates expected to ease by year-end

• 2025–2029 forecast: +24.5% growth (Savills)

👉 Key takeaway: With lower inflation and expected rate cuts, this year could offer strong entry points for buyers and investors planning for long-term gains.

Why Partner with Peaksons Properties Ltd?

At Peaksons Properties Ltd, we don’t just track the market—we help you make it work for you.

Whether you’re a:

• Buyer seeking a fair deal

• Seller wanting fast, strong offers

• Landlord or investor eyeing new opportunities

• Or someone just planning your next step—

—we provide personalised, data-driven advice tailored to your needs. Our Harrow-based team combines local expertise with real-time market analysis to give you the edge in today’s property climate.

📞 Let’s Talk Property

If you’re considering making a move—or just want a better understanding of your options—we’re here to help.

📧 Email: harsh@peaksons.co.uk
📞 Phone: 020 8861 2121
🌐 Website: www.peaksons.co.uk

Let’s turn uncertainty into opportunity—together.