UK Property Prices Reach Fresh Highs

Market Insight: May 2025

UK Property Prices Reach Fresh Highs Amid Shifting Buyer Dynamics.

The average asking price for a home in the UK has once again reached a record high, edging just below the £380,000 mark to stand at £379,517, a modest monthly increase of 0.6% (+£2,335). While this represents yet another milestone, it also marks the smallest rise for May since 2016, reflecting a market where pricing is increasingly tempered by buyer caution and increased stock levels.

Prime Central London Market Outlook

Property values across Prime Central London remain significantly below their historic highs, currently standing at 21.2% below the 2014 peak, or 42.3% lower when adjusted for inflation. In this context, and irrespective of short-term market movements, current pricing represents compelling long-term value by historical standards.

Encouragingly for buyers, the volume of homes available for sale remains at its highest for over a decade, providing a broader selection and helping to moderate upward pricing pressures.

Following an unseasonably active March, largely driven by buyers seeking to complete ahead of the revised stamp duty thresholds, new buyer demand cooled slightly in April, falling by 4% compared to the same period last year. However, listings remain robust, with a 14% uplift in new sellers entering the market, suggesting ongoing confidence among vendors.

Positive Figures – Despite the Dip in the Market

Despite the temporary dip in buyer interest, the year-to-date figures remain positive: buyer demand is still tracking 3% ahead of 2024, and agreed sales are currently 5% higher than at this point last year. This resilience underscores a continued appetite for well-priced, quality stock, particularly in prime and upper-quartile segments.

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