May 2025 Housing Market Snapshot

UK Property Prices Hit New Highs, but Buyers Getting More for Their Money

House prices across the UK have climbed again, with the average asking price now at £379,517, just shy of the £380k mark. That’s a 0.6% rise in May (+£2,335), continuing the trend of annual growth, but it’s also the smallest May increase since 2016, as buyers become more price-sensitive and stock levels improve.

Plenty of Choice for Buyers

The number of homes available on the market is the highest it’s been in over a decade, giving buyers more room to negotiate and find the right fit. While March saw a flurry of activity ahead of stamp duty changes, April brought a slight slowdown in demand, down 4% year-on-year.

But seller confidence is still strong, with new listings up 14%, showing people are keen to move.

London Still Offers Value

If you’re looking in London, prices are still well below their peak. Values are down 21.2% from the 2014 high, and 42.3% lower when adjusted for inflation. That presents a real opportunity for long-term buyers looking to secure value in one of the world’s most desirable postcodes.

Solid Signs of Strength

Despite April’s softer demand, 2025 is still ahead of last year overall. Buyer interest is up 3% year-on-year, and sales agreed are 5% higher than this time in 2024. There’s clearly still a strong appetite for well-priced homes, particularly in the upper market tiers.

All in all, the market is balanced and active, and with more choice, slightly softer growth, and continued demand, it’s a good time to make a move, whether you’re buying or selling.

Don’t miss our next article, subscribe to our news updates…