The UK housing market has seen continued progress over the past 12 months, in accordance with Zoopla’s newest House Price Index.
More gross sales are being agreed (5%) however purchaser demand is increased (4%) leading to a consumers’ market, albeit with variations throughout the nation.
According to Zoopla, these trying to promote over the autumn promoting season should worth their houses accurately, whereas current tax hypothesis might have a short-term affect on houses valued at over £500,000.
The tempo of home worth progress has slowed over current months, as a consequence of consumers having higher selection of houses on the market (10% greater than final 12 months) and affordability being an ongoing constraint on shopping for energy, particularly throughout the south of England.
However, the slowdown appears to have stabilised, with common home costs 1.3% increased over the past 12 months. This is beneath the two.1% worth progress recorded firstly of 2025, however increased than 0.6% this time final 12 months. The common UK home worth is £270,600, £3,560 greater than a 12 months in the past.
Media conjecture over potential tax modifications, together with the elimination of stamp responsibility and its alternative with an annual property tax for houses over £500,000, and a possible capital positive factors tax legal responsibility for dwelling sellers with a property over £1.5m, has stirred the waters and created uncertainty forward of the Autumn Budget.
Any modifications might affect market exercise and purchaser expectations.
The time a property stays in the marketplace 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 mix of fewer houses in the marketplace than a 12 months 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 houses on the market is increased than a 12 months 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 govt director Richard Donnell stated: ““We count on UK home worth inflation to proceed in a spread of 1.5-2% over the remainder of the 12 months. There are indicators that costs are firming in southern England however worth progress is slowing throughout northern areas.
“The market continues to report seasonally robust gross sales as these promoting their dwelling search to safe their subsequent dwelling. 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 12 months will probably be shrouded by hypothesis of the best way to decipher the federal government’s messaging on property tax.
“Either manner, sentiment impacts determination making and the longer a property takes to promote (if mis-priced for instance), the larger the chance of one thing going improper, as consumers turn into ever extra hesitant, and the chance of market decelerate will increase.”
Propertymark chief govt Nathan Emerson warned: “We are additionally listening to of future potential proposed modifications relating to Stamp Duty. However, it is important that tax reform is performed in a manner that doesn’t penalise aspiring owners with extra prices that hinder their possibilities of transferring home.”
