The latest UK Property Price Index for June 2025 reveals a housing market that continues to defy expectations, with sales being agreed at the fastest rate seen in four years. Despite broader economic headwinds, the property sector has remained resilient, buoyed by a surge in buyer demand and a notable increase in housing supply. The average time to sell a property now stands at 45 days, matching figures from June 2024 and highlighting the consistent pace of transactions over the past year.
One of the main drivers behind this momentum is a 14 percent rise in the number of homes available for sale compared to the same period last year. This increase in supply is significantly improving buyer choice, allowing prospective homeowners to consider a wider range of properties and negotiate more effectively. For sellers, however, the heightened competition means pricing correctly has become more important than ever. Homes that are priced in line with market conditions are selling quickly, while those listed too high are being overlooked.
UK house price growth has slowed to an annual rate of 1.4 percent, marking a shift in the market after years of stronger increases. However, this national average masks significant variation between different types of locations. In more affordable areas such as parts of the Midlands, the North East and parts of Wales, prices are continuing to rise at a healthy rate. These regions remain attractive to buyers, especially first-time buyers and movers looking for better value, where properties remain relatively affordable despite ongoing pressures on household finances.
By contrast, in higher-value areas where the average home exceeds £500,000, prices are beginning to fall. These markets are more exposed to the effects of higher mortgage rates and affordability constraints. Buyers in these regions are often more cautious and price-sensitive, and this is prompting many sellers to adjust their expectations. The trend is particularly visible in parts of London and the South East, where reductions in asking prices are becoming increasingly common.
The gap between initial asking prices and final sale prices is also starting to widen in several parts of the country. This highlights the importance of setting the right price from the start. Sellers who price too ambitiously are often finding themselves forced to make reductions after weeks of limited interest. On the other hand, those who take a more realistic approach are more likely to attract multiple viewings and receive offers within a reasonable timeframe.
Looking ahead to the rest of the summer, the market appears to be well balanced. Increased supply is helping to meet strong demand, and while price growth is likely to remain modest, the pace of activity should continue if sellers remain flexible and responsive to market signals. Mortgage rates have stabilised in recent months, providing a clearer picture for buyers as they plan their next move.
As the market continues to adjust, both buyers and sellers will need to stay focused on value. For sellers in particular, working closely with experienced estate agents who understand local trends will be vital in securing a successful outcome. With more homes coming onto the market and buyers having greater choice, accurate pricing, good presentation and a proactive approach remain the key ingredients for a swift and successful sale.