Increased Home Buying Activity in May, Marking the Busiest Since 2021; However, Property Asking Prices Experience a Decline, According to Zoopla.
UK Property Sales Surge to Four-Year High, Yet Sellers Face Average Price Reduction
The latest house price index from Zoopla reveals that the number of property sales agreed in May has reached a four-year high. However, sellers are finding it necessary to lower their asking price by an average of £16,000 to secure a deal.
According to data from Zoopla, average UK house prices have increased by 1.6% compared to a year ago, reaching £268,250. This represents an increase of £4,330 over the past 12 months. To keep buyer interest, Zoopla advises sellers to approach pricing realistically.
Currently, the average home sale is being agreed at 3%, or £16,000, less than the average asking price – a level that has remained steady in recent months.
While growth in sales and mortgage approvals had slowed in recent months due to the ending of temporarily higher stamp duty reliefs in April and the Easter holidays, sales have begun to rebound and are now 6% higher than in May 2021.
Lenders are revising their assessments of buyers' ability to afford higher mortgage rates, enabling home buyers to borrow up to 20% more. This change has supported consumer confidence, bolstering the number of sales agreed, Zoopla notes. Moreover, there is a 13% increase in the number of homes available on the market compared to a year ago.
Richard Donnell, executive director at Zoopla, asserts, "The increased number of homes for sale means more buyers seeking to move, along with more attractive mortgage deals and changes to lender affordability assessments, contributing to an increase in the number of sales being agreed." He further predicts that sales will continue rising over the second half of the year, with UK home values projected to be 2% higher by the end of the year.
The strongest property price gains are emerging in cities across the North West as employment growth boosts demand and house prices. Higher home values and rents in major cities like Manchester and Liverpool, where prices have increased by 2.5% and 3% respectively, are pushing demand into adjacent and accessible areas, further driving house prices. Rapid growth can also be noted in cities like Blackburn (5.8%), Wigan (4.4%), and Birkenhead (4.1%).
Meanwhile, in southern England, the increased number of homes for sale is considerably boosting buyer choice, effectively keeping price growth in check. There are 21% more homes for sale in the South West, 17% more in London, and 15% more in the South East compared to this time last year, resulting in slower growth. Lower availability of homes for sale, better affordability, and faster growth in sales explain why house prices are less than 1% across all regions of southern England, with price rises under 1% recorded in all areas.
In contrast, there are just 3% more homes for sale in the North West and 5% more in Scotland than a year ago. Lower availability, better affordability, and faster growth in sales contribute to higher prices in the North West (up 3%) and Scotland (up 2.9%), with above-average price rises reported in northern England and Northern Ireland.
Sellers and buyers need to be mindful of local circumstances, adopting different strategies based on where they reside in the UK. However, all sellers should maintain a realistic approach to pricing expectations, Donnell advises.
[1] https://www.average-house-price.co.uk/[2] https://www.bankofengland.co.uk/monetary-policy/monetary-policy-decision-and-inflation-report/2025/may[3] https://www. rhs.org.uk/policy/news-and-opinion/rhs-uk-real-estate-market-report[4] https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/houseprice inflation/august2023#:~:text=In%20August%202023%2C%20the%20average,of%200.5%25%20compared%20with%20August%202022.
- To secure a deal, sellers in the UK housing market are advised to approach pricing realistically, considering the increase in the number of homes available and the rising demand in certain regions, such as cities in the North West.
- Conversely, in southern England, the increased number of homes for sale is effectively keeping price growth in check, making it essential for sellers to be mindful of local circumstances and adapt their strategies accordingly.
