Sales are up, supply is growing, and pricing power is shifting. Dive into the latest Zoopla House Price Index to see what it means for your market.
Sales activity continues to run at the fastest rate for 4 years, with more homes for sale meaning more buyers in the market
UK house price inflation slows to 1.4% as 14% more homes for sale boosts buyer choice and limits price growth
Clear link between growth in supply and levels of price inflation
House price inflation is higher in more affordable markets
Modest price falls in markets with average values over £500,000
Average time to sell is 45 days, in line with June 2024
A fifth of homes have been on market for >6 months with no sale
Setting the right price from the start is essential to achieving a sale
Sales agreed are running at the fastest pace in four years, increasing by 6% year-on-year. The pace of sales is slowing, and this will continue over the seasonal summer slowdown.
However, more sales doesn't mean faster house price growth. In fact, house price inflation has slowed to 1.4% in the 12 months to May 2025. This is higher than the 0.3% increase recorded a year ago, but lower than the 2% recorded in February. A 14% increase in homes for sale has significantly slowed house price inflation by giving buyers more choice.
Demand for homes remains higher than a year ago but buyers remain price-sensitive, which is also limiting house price inflation. This is particularly important in housing markets with higher average prices, creating an additional affordability hurdle for home buyers.
While average earnings are rising at 5% a year, higher inflation means less scope for the Bank of England to cut interest rates in the coming months.
There is a clear link between house price inflation and the change in the number of homes for sale over the last year.
The number of homes for sale in London, the South East and the South West is 16-19% higher than a year ago. House prices in these areas have barely risen, increasing by less than 0.5% over the last year.
In contrast, regions in the north, the West Midlands and Scotland have seen limited changes in supply, creating an element of scarcity. This has supported an above-average price inflation of 2-3%.
Affordability has had a large impact on house price inflation. House prices are rising more quickly in markets with properties valued at below-average, with growth levels lower in higher priced areas.
House prices are 2.7% higher in markets with average house prices below £200,000, and 1.9% higher in markets priced between £200,000 and £250,000. Together, these markets account for 50% of UK homes. Above-average house price inflation is supporting market activity.
At over 3.5% per annum, home values are currently increasing fastest in parts of the North West of England and Scotland, specifically Wigan (WN), Falkirk (FK) and Blackburn (BB) postal areas.
Lower-value housing markets did not register price falls over 2023 and early 2024 when mortgage rates reached 5-6%. The impact was greater in higher-value markets, where the income to buy and level of deposit required increased the most, impacting demand for homes.
House price inflation is lower in higher-value markets, with modest price falls (-0.2%) in areas with home values over £500,000. These markets account for 8% of UK homes.
Modest price falls are concentrated in pockets of inner London, the South West and, to a lesser degree, South East England. Prices are more than 1% lower over the last year in West Central London (WC, -4.3%) and West London (W, -1.3%) postal areas alongside Torquay (TQ, -1.7%) and Truro (TR, -1.3%) areas in the South West.
In addition to affordability factors, tax and policy changes aimed at second homeowners and landlords are leading to weaker demand and more sales by these owners. This is compounding the impact on house price growth at a localised level.
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In the current market, sellers need to be realistic on pricing if they're serious about finding a buyer and moving home in 2025.
The average time to sell is 45 days, broadly in line with this time last year. This ranges from 35 days in the North East, to 57 days in Wales. Due to a larger number of homes for sale, the southern regions of England have an average of over 50 days. The market operates differently in Scotland, where the time to sell is just 18 days. After an offer is accepted and the property is taken off the market, it can take another 4-5 months completing a purchase and moving in.
The average time to sell shows the possible speed when there is a willing buyer and willing seller that agree on a purchase price within 4-7 weeks of a property being listed. However, some homes can stay on the market much longer, failing to attract enough interest.
Over 1 in 5 homes (22%) currently listed for sale have been on the market for over 6 months and remain unsold. Many sellers have a price in mind that they want to secure a sale for their home, or a price they need to achieve in order to unlock their next home move. They may eventually get this price but may have to wait a long time to achieve it. Ultimately, it’s a choice between sellers prioritising a specific sale price or agreeing a sale in a timely manner.
Recent changes to how mortgage lenders assess mortgage affordability have delivered a 20% boost to the borrowing capacity of home buyers using a mortgage. This will help close the affordability gap for some buyers and support more sales.
Homeowners keen to sell in 2025 who have been on the market for some months need to discuss the marketing strategy with their agent and realistically look to adjust the price to attract more interest. There is a demand for homes and a desire to move, but careful pricing is key.
The number of sales being agreed is positive and clearly demonstrates an underlying desire of households to move home, giving agents the opportunity to win more instructions and drive completions.
Improved mortgage affordability will support buying power in the second half of the year. Buyers remain price-sensitive, especially in higher-value markets, where the number of homes for sale has grown the most in the last year, boosting choice.
The market remains on track for 5% more sales in 2025 but house price inflation will remain between 1 and 2%. Supporting clients when deciding on a price is essential to improving the chances of achieving a sale.
The Zoopla House Price Index (HPI) is a repeat sales-based price index, using sold prices, mortgage valuations and data for recently agreed sales. The index uses more input data than any other and is designed to accurately track the change in pricing for UK housing. It’s a revisionary index and non-seasonally adjusted.
Download the full June 2025 House Price Index
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We try to make sure that the information here is accurate at the time of publishing. But the property market moves fast and some information may now be out of date. Zoopla accepts no responsibility or liability for any decisions you make based on the information provided.
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