July Market Update

We’ve reached the halfway point of 2025. Was June a subdued month for sales and lettings? The latest reports are in and here’s how the market behaved.

1) Asking prices decreased: June saw the end of ever-increasing asking prices. The latest Rightmove house price index showed sellers were marketing their properties for £1,277 less in June, when compared to May. The UK’s average asking price is now £378,240.

Key metrics increased

2) Figures pointed to positivity: Rightmove’s report also found the market is poised for a busier, better summer than seen in 2024. Buyer demand is 3% ahead of where it was this time last year, and the number of new homes coming to market is up 11%. The portal also found the number of sales agreed in May was the highest since March 2022.

Sold house prices revealed

3) Monthly movement noted: the two major house price indexes published in June, which document final sold prices, were at odds when it came to monthly movement. The Halifax said values dropped 0.4% in May, to £296,648. The Nationwide, meanwhile, found sold prices increased 0.5% in May, reaching £273,427.

4) Annual growth continues: despite discrepancies, both the Nationwide and the Halifax agree on one thing – house prices are increasing year on year. The Nationwide said values are now 3.5% higher than this point in 2024. The Halifax had the annual increase at 2.5%.

5) Rents increased but more moderately: Zoopla’s June Rental Market Report declared the end of a four-year run of unsustainable rental value rises. It reported rents were 2.8% higher in the year to April 2025. This is less than half the 6.4% recorded last year, and the lowest growth since July 2021.

6)  Demand cooled: the portal’s analysis found the typical monthly rent is now £1,287. This represents an increase of just £35 over the past year. Demand for rented homes is 16% lower over the last year, while there are 17% more homes available.

7) Regional variations persisted: HomeLet’s latest rental index showed a similar average monthly rent for new tenancies – at £1,307 - with the average rent increasing 0.7% during the last month. Northern Ireland, Wales and Scotland posted the biggest monthly increases.

Bill, Bill, Bills

8) Renters’ Rights Bill progressed: June saw the biggest set of reforms for England’s private rental sector take a step forward. The Bill completed the committee stage in the House of Lords and has moved on to the reporting stage. There are doubts whether the Bill will gain Royal Assent before summer recess, with this more achievable in the autumn.

9) The Housing (Scotland) Bill moved forward: the Scottish private rental sector is also closer to widespread reform as The Housing (Scotland) Bill passed the Stage 2 scrutiny in June. One contentious reform remained unamended and that’s a plan to allow rent caps in Rent Control Areas. Any increase would be in line with inflation +1% and up to a maximum of 6%. 

Landlord sentiment revealed

10) Optimism in the air: the Handelsbanken’s Property Investor Report 2025 was published in June. It found 54% of property investors questioned planned to increase the size of their portfolios. An additional 80% expected their portfolio to increase in value, while 74% planned to diversify geographically.

11) Shift to eco renting noted: the Handelsbanken’s Property Investor Report also revealed 92% of property investors felt tenants were willing to pay more for rentals with higher EPC ratings and sustainable features. In addition, 77% said tenants are actively requesting improvements such as heat pumps, solar panels and EV charging points, while 36% said proposed EPC reforms made them feel more positive about the market.

If you would like to know more about your local property market, please get in touch.