Zoopla House Price Index: July 2025

The UK property market is demonstrating unseasonable strength this summer, a trend that demands attention from every professional in the sector.

We're seeing a significant uplift in market activity, with buyer demand, agreed sales and the volume of homes for sale all at unexpectedly high levels across the UK.

This robust activity is providing opportunities for increased transactions, but it’s a competitive environment that requires strategic navigation and realistic pricing.

Average UK house prices

The average house price in the UK stands at £268,400 as of June 2025 (published July 2025). This represents a rise of 1.3% or £3,350 over the past year. 

These national averages provide a useful baseline for local market comparisons and client conversations.

UK housing market sees unseasonable summer boost

Market activity is notably stronger than a year ago, defying the typical summer slowdown and giving the opportunity for agents to maintain sales momentum and for housebuilders to drive completions.

• Buyer demand is up 11% year-on-year, indicating a strong pool of motivated movers across all parts of the UK

• Agreed sales are up 8%, a clear indicator of robust buyer confidence in the market

• There’s a record number of homes on the market, meaning increased competition and demanding precise valuation and standout marketing

These trends are consistent across all UK regions, as buyers actively seek to finalise sales before the school holidays and the August slowdown.

A significant catalyst supporting this activity is the recent relaxation to mortgage affordability testing. Those using a mortgage can now borrow up to 20% more than they could 3 months ago, without any change to their income or the mortgage rate offered.

This directly expands buyer capability, creating new opportunities for sales - especially with buyers who were previously at the edge of affordability.

... But it’s not translating into faster house price rises

Despite the surge in activity, house price growth continues to slow, with the annual rise now at +1.3%. While this is faster than June 2024 (+0.4%), it's slower than six months ago (+2.1%).

This moderation is primarily due to the high supply of homes for sale, with 12% more properties on the market than last year. It creates a 'buyers’ market' dynamic, where greater choice and competitive offers limit price increases. For agents, this underscores the importance of advising sellers on realistic pricing.

Regional dynamics in UK house price growth

While overall market activity is strong, house price growth shows a clear regional divide.

Northern regions, Wales and Scotland are registering the strongest price growth at 2-3% over the last year. Northern Ireland leads with 6.1% due to its lower starting point. These areas represent key growth markets for expanding investor portfolios, offering capital growth potential as well as strong rental growth.

In the South of England, annual house price growth is below +1%, ranging from +0.2% in the South East and London to +0.8% in the East of England. 

For agents in southern markets, a focus on precise valuation and highlighting unique property features is crucial to differentiate listings amidst higher supply and slower growth.

Higher stamp duty costs slow price growth

A significant factor influencing price growth in England and Northern Ireland is the higher stamp duty costs since temporary reliefs ended in April.

With the overall cost of buying now higher, buyers must factor this into their offers, directly impacting agreed sale prices.

This tax, being value-based, disproportionately affects buyers in Southern England, contributing to slower price growth there.

Our latest data shows 83% of homeowners now pay stamp duty when they move, at an average cost of £2,500 per sale, compared to just 49% before April 2025. 

Listing homes in a buyers’ market: Strategic pricing is vital

The key message to sellers is the absolute necessity of realistic pricing to achieve a successful sale in 2025.

In Southern regions in particular, where the number of homes for sale is significantly higher (London +19%, South East/South West +16% vs. July 2024), buyers have ample choice and will bypass overpriced listings.

What’s next for the UK housing market in 2025?

The housing market is broadly in balance, characterised by a healthy number of agreed sales without leading to rapid house price acceleration.

Mortgage rates are expected to remain at current levels (4-5%). Focus on the increased borrowing power from affordability testing changes to encourage moves, rather than anticipation of rate cuts.

We project 5% more home sales in 2025 than in 2024, indicating a healthy opportunity for increased instruction volumes for agents and sales completions for housebuilders.

Our revised forecast for UK house prices is a rise of around 1% in 2025. This modest, sustainable growth allows for improved affordability, which is critical for maintaining market confidence and transaction levels.

A balanced market like this rewards accurate valuations, proactive marketing and a close understanding of regional demand and buyer affordability.

UK house price growth by region and city

About our House Price Index

The Zoopla House Price Index (HPI) tracks the change in achieved sales price of homes, it’s not an index tracking asking prices. The index uses sold prices, mortgage valuations and data for recently agreed sales with more input data than any other index. The methodology is designed to accurately track the change in pricing for UK housing. It’s a revisionary index and non-seasonally adjusted.

Additional notes on this month’s data:

• The 8% rise in agreed sales compares the 4 weeks to 20 July 2025 with the same period in 2024

• Mortgage rates averaging 4.3% is Bank of England data on the average new 5-year fixed rate 75% LTV mortgage

• Our analysis of how many homeowners pay stamp duty compares buyer enquiries by Stamp Duty price band between 1 April 2025 and 20 July 2025

Download the Zoopla House Price Index - July 2025 (PDF, 375.60kB)