In 2025, the UK housing market faced many challenges. Inflation and interest rates headlined. So too did the increase in stamp dutyA tax paid by the buyer when purchasing a property. brackets. There was also an influx of new homes becoming available. This was thanks to councils being allowed to double council tax on second homes.
With the summer figures available, it’s now clear that the UK housing market is very resilient. House prices and market activity saw a jump after the dip that inevitably followed the stamp duty increase. As well as this, house prices rose over the last 12 months. There is a slight problem for sellers, though. We are in a buyers’ market.
A Housing Market that Shrugs Off the Pressures
The ONS recently revealed how much house prices have risen across the UK in the past year. Up to June 2025, house prices have gone up by 3.7 per cent in the UK. This puts the average price at close to £270,000. However, the different states of the UK saw different growth rates.
Wales trailed with its average house price at £210,000 for a 2.6 per cent bump. England landed in the middle at just below the national average. English home prices grew by 3.3 per cent to just over £290,000. Scotland enjoyed the biggest surge. The northernmost state saw prices soar to £192,000 on average for a 5.9 per cent increase.
In July 2025 specifically, house prices returned to growth in the UK. The average price rose by 0.6 per cent. As an annual rate, it improved by 2.4 per cent. This marked a 0.3 per cent increase on the same metric measured in June 2025. Adding to this, activity remained high. Over 64,000 new mortgages were approved in July alone.
Helping this was that mortgage rates eased and banks were open to offering larger loans. Rising wages and cheaper mortgage rates have paired up to help power up the housing market. The Bank of England also voted to cut base rates to four per cent.
A Buyers’ Market Getting Sellers to Consider Other Options
House prices going up on average is a good sign for the market. This is particularly because it’s a buyers’ market right now. In Q2 of 2025, it was found that there were around 5.7 new buyers per new property on the market. This may seem like there’s plenty of sellers who’re out to compete. Yet, it’s the lowest buyer count since 2018.
It’s led to asking prices needing to be realistic and for sellers to be willing to negotiate down. Given the lengthy process of selling a house as well, many sellers have turned to alternative ways of selling. Anyone looking into how to sell your house quickly in the UK will likely come across the cash buyers. These established businesses make the process swift and simple.
On the website, the seller can put in their address and a few detailed to get a free, non-obligatory, cash offer with no hidden fees. If accepted, cash can be sent in weeks. Also, the sellers gets to choose their own sale timeframe, allowing time to find a new place to live.
Overall, UK housing is on the rise, but sellers need to keep in mind that it’s a buyers’ market.
