2025 has been a year of steady momentum, with firm foundations supporting stability in the housing market. Prices remain steady, with modest but consistent gains expected through the year. Sustained summer demand has underpinned momentum, though price sensitivity, softer economic conditions, and policy uncertainty may temper growth.
Robust activity
September marks the beginning of the busy autumn selling season, and despite the usual seasonal lull, demand over summer has remained firm, supported by easing rates and wider choice, with buyer demand up 4% year-on-year⁴. Mortgage approvals rose for the third month in a row, reaching 65,352 in July, 4.6% higher than last year². Residential property transactions also gained momentum, with 95,580 in July, up 4.3% year-on-year and 5% above the five-year average⁵. While economic policy may temper these seasonal trends, realistic pricing is crucial, and the overall outlook for the housing market remains remarkably steady.
¹ ONS, ² Bank of England, ³ UK Finance, ⁴ Zoopla, ⁵ HMRC
Moderating growth rates
After two years of unusually strong gains, the pace of rental growth is slowing. RICS data shows that demand has normalised, pointing to a return to more typical medium-term trends. There are also early signs of improving supply, with Rightmove reporting 15% more homes available to rent than a year ago². Despite an improving balance between supply and demand, competition remains strong, with 45% of agents reporting that there are typically 6–10 applicants per listing and a further 35% reporting 11–20³. The average rent in August was £1,328, 0.2% higher than a year earlier¹.
¹ HomeLet, ²Rightmove, ³PriceHubble, Poll of Subscribers
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