The UK housing market has seen continued progress during the last 12 months, in accordance with Zoopla’s newest House Price Index.
More gross sales are being agreed (5%) but purchaser demand is increased (4%) leading to a patrons’ market, albeit with variations throughout the nation.
According to Zoopla, these trying to promote over the autumn promoting season should worth their properties accurately, whereas latest tax speculation could have a short-term impression on properties valued at over £500,000.
The tempo of home worth progress has slowed over latest months, because of patrons having larger alternative of properties on the market (10% greater than final yr) and affordability being an ongoing constraint on shopping for energy, particularly throughout the south of England.
However, the slowdown appears to be like to have stabilised, with common home costs 1.3% increased during the last yr. This is beneath the two.1% worth progress recorded at first of 2025, but increased than 0.6% this time final yr. The common UK home worth is £270,600, £3,560 greater than a yr in the past.
Media conjecture over potential tax adjustments, together with the elimination of stamp responsibility and its alternative with an annual property tax for properties over £500,000, and a potential capital beneficial properties tax legal responsibility for house sellers with a property over £1.5m, has stirred the waters and created uncertainty forward of the Autumn Budget.
Any adjustments may impression market exercise and purchaser expectations.
The time a property stays on the market is a key indicator of housing market well being and is immediately linked to deal with worth inflation.
Zoopla’s newest report exhibits that in northern areas, a mixture of fewer properties on the market than a yr in the past and higher affordability is leading to speedier gross sales occasions.
In distinction, areas throughout southern England are experiencing a stronger purchaser’s market. The provide of properties on the market is increased than a yr in the past whereas increased home costs create affordability issues which have prolonged the time it takes to agree a sale.
Commenting on the report, Zoopla government director Richard Donnell mentioned: ““We count on UK home worth inflation to proceed in a vary of 1.5-2% over the remainder of the yr. There are indicators that costs are firming in southern England but worth progress is slowing throughout northern areas.
“The market continues to report seasonally robust gross sales as these promoting their house search to safe their subsequent house. The market stays on observe for five% extra gross sales in 2025 at 1.15 million.”
Knight Frank head of London super-prime gross sales Stuart Bailey commented: “The autumn market is about to start and this yr shall be shrouded by speculation of tips on how to decipher the federal government’s messaging on property tax.
“Either approach, sentiment impacts choice making and the longer a property takes to promote (if mis-priced for instance), the larger the danger of one thing going fallacious, as patrons turn into ever extra hesitant, and the danger of market decelerate will increase.”
Propertymark chief government Nathan Emerson warned: “We are additionally listening to of future potential proposed adjustments concerning Stamp Duty. However, it’s vital that tax reform is performed in a approach that doesn’t penalise aspiring owners with further prices that hinder their possibilities of shifting home.”
