Market Cooling or Resetting? June 2025 Property Snapshot

Market Cooling or Resetting? June 2025 Property Snapshot

June has brought some interesting twists to the UK property market. While April and May saw a solid run, June’s numbers show a slight dip in asking prices. But don't panic, this looks less like a downturn and more like a market finding its balance.

Too Much Choice, Not Enough Urgency?

Rightmove reports that asking prices dipped by 0.3% in June, even though prices remain 0.8% up year-on-year. Why? Simple—buyers are spoilt for choice. We’re seeing the highest number of homes on the market in over a decade, meaning sellers need to be realistic with their pricing if they want to get moving. That said, there's plenty of action. June’s sales were the strongest since March 2022, proof that well-priced homes are still flying off the shelves.

Hometrack Highlights: The Supply Surge

Hometrack confirms what many agents and valuers already know—supply is up, and that’s keeping prices from climbing too quickly.

• UK house price growth has slowed to 1.4%
• Average time to sell? Still a healthy 45 days
• Higher-value areas (think over £500k) are seeing modest price falls
• Northern regions and Scotland, where supply has grown less, are actually seeing prices rise faster—up to 3%

The key takeaway? Where there’s more choice, prices stay flat. Where there’s less, they rise.

Mortgage Rates: A Gentle Slide

The average 2-year fixed mortgage dipped slightly from 4.64% in May to 4.62% in June. It’s not a dramatic fall, but it continues the slow trend towards more affordable lending. Lenders remain cautious though, and inflation is still playing its part in rate decisions.

Looking ahead, analysts expect a couple of Bank of England base rate cuts before year-end—possibly in August and November—which could bring the base rate to around 3.75%.

So while we’re not back to the ultra-low pandemic-era rates, things are definitely heading in the right direction for buyers.

Rental Market: Cooling Off, But Still Competitive

The HomeLet Rental Index shows the rental market is easing slightly:

• Average UK rent (including London): £1,308 (up just 0.1% monthly)
• Outside London: £1,127 (up 0.3% monthly and 2.3% yearly)
• London rents actually dropped 0.5% in June

While this slowdown is welcome news for tenants, demand is still strong, and affordability remains a major challenge—especially in southern regions. Some bright spots? Wales and Northern Ireland saw the biggest yearly increases, both above 4.5%, as renters seek more value outside traditional hotspots.

Regional Round-Up from L&G Surveyors

Northwest & Scotland:
Second-hand homes under £250k are shifting fast—many within a month. Buy-to-let interest is picking up in places like Chester and Liverpool, and new builds in central Liverpool are nudging prices upwards.

Southeast:
It’s a mixed bag. Some homes are getting multiple offers, while oversupplied areas are seeing price cuts. Buy-to-let landlords are exiting in places, influenced by upcoming rental legislation.

Northeast:
In some parts, prices are rising above asking thanks to low supply. Sheffield is one of the standout markets. Rents are climbing, and even new builds are increasing—albeit with the usual incentives.

What’s Next?

The market is still on track for 5% more sales in 2025 compared to last year. Affordability is improving, mortgage rates are edging down, and despite regional differences, buyers are out there. But one thing is certain—pricing is everything.

In today’s market, whether you're a seller, buyer, or landlord, success starts with understanding where the market is heading and adjusting accordingly.

Final Word

With the second half of 2025 ahead, the market feels cautiously optimistic. We’re not in a boom, but we’re also not in a bust. The momentum is there—it just requires smart moves and realistic expectations.

Thinking of buying, selling or investing? Now’s a good time to plan carefully and stay informed. We’ll keep you updated every step of the way.