As we approach the middle of 2025, the UK property market is showing notable signs of activity and growth, despite some ongoing economic challenges. In particular, house prices are seeing a steady rise, and buyer demand is holding strong, suggesting that the housing market continues to perform well in spite of the broader economic conditions.
House price trends: A steady increase
One of the key indicators of market performance is house prices, and in April 2025, the UK housing market saw a significant uptick. According to the latest data from Rightmove, the average asking price for properties coming to market increased by 1.4% in April, reaching £377,182. This marked the first monthly price record since May 2024, a period that had been marked by slight stagnation. The increase was higher than the typical April rise of 1.2%, suggesting that there is a real surge in market momentum as we head into the summer months.
This surge in prices is particularly interesting because it reflects a broader shift in buyer behaviour. Despite rising costs and uncertainties over the global economy, prospective buyers are continuing to engage with the market. In fact, new buyer demand is running 5% ahead of the same period last year, indicating that many buyers are still motivated to move forward with property purchases.
Mortgage rate adjustments: A positive shift
In an effort to combat inflation, the Bank of England had raised interest rates in previous years. However, recent signs suggest that these rates are starting to level out, with the Bank of England announcing a rate cut from 4.5% to 4.25% in early 2025. This move is expected to have a positive impact on mortgage rates, making borrowing more affordable for many buyers. Lower mortgage rates could revive some of the demand seen in the market, particularly for first-time buyers and those looking to upgrade their homes.
Sellers and buyers: Navigating a competitive market
Even with the increasing prices, competition in the housing market remains high. For sellers, it is important to price properties competitively to attract potential buyers. The UK property market remains a competitive space, with potential buyers often being selective in their choices, preferring homes that offer good value for money and are well-presented. Therefore, those looking to sell their homes must ensure they present properties in the best possible light to stand out in a crowded market.
Looking ahead: Positive outlook despite challenges
The future of the UK housing market in 2025 looks optimistic. Despite some challenges related to interest rates, inflation, and economic uncertainty, the property market continues to show resilience. House prices are rising, buyer demand remains strong, and key indicators suggest a steady recovery as we move into the second half of the year.
For buyers, this could be an ideal time to enter the market, especially with the recent reduction in mortgage rates. For sellers, pricing correctly and preparing homes to meet buyer expectations will be crucial for success.
Considering a move this summer? Get in touch and let’s explore your options together.
