Property market revival stumbles, according to RICS report
UK House Prices Show Modest Growth Amid Seasonal Downturn
The UK housing market is experiencing a modest yearly growth in house prices, but recent monthly data indicate a slight seasonal downturn, according to multiple sources.
- The Office for National Statistics (ONS) reported a 3.7% year-on-year increase in UK average house prices to £269,000 in June 2025. Regions like England, Scotland, Wales, and Northern Ireland saw increases of 3.3%, 5.9%, 2.6%, and 5.5% respectively.
- Halifax and Nationwide reported relatively steady prices around £296,000 and £272,664 respectively, with Halifax showing a 0.4% monthly increase in July, the largest increase this year. Nationwide reported a 0.6% rise in house prices in the same month.
- Rightmove data for August 2025 show a 1.3% seasonal fall in asking prices to £368,740, marking the third consecutive monthly decline. This price dip has encouraged increased buyer activity and a busy sales market in July 2025.
The overall market remains resilient, with buyer demand rising even as sellers face more competition and need to price homes realistically to sell quickly.
- A net balance of +8% of RICS respondents expect sales activity to pick up over the next 12 months. However, the latest RICS report showed a "flatter tone," with -13% of respondents stating that house prices fell over the past three months in July 2021, compared to -7% in June.
- New buyer enquiries fell from a net balance of +4% in June to -6% in July, and agreed sales also dropped from -4% to -16%.
Changes to mortgage affordability tests could help more buyers onto the property ladder, as lenders have loosened the rules following encouragement from the regulator. However, uncertainty about the potential contents of the chancellor's Autumn Budget is raising some concerns among respondents.
Estate agency Savills has downgraded its 2025 forecast for the mainstream UK property market from 4% to 1%. Rightmove and Zoopla have both halved their forecasts for house price growth in 2025, with Rightmove expecting a 2% overall increase and Zoopla expecting just 1%.
In summary, UK house prices continue to grow slowly on a yearly basis, but the market is experiencing typical seasonal summer price declines in asking prices, accompanied by an uptick in buyer activity and more competition among sellers. This suggests a stable but cautious market environment as of August 2025.
- The growth in UK house prices is being observed despite a seasonal downturn and monthly declines, as reported by several sources such as the Office for National Statistics, Halifax, Nationwide, Rightmove, and RICS.
- Recent newsletters from estate agencies like Savills and property market analysts like Rightmove and Zoopla indicate a slowdown in house price growth, with forecasts revised down to 1% for 2025.
- Changes in mortgage affordability tests and the loosening of lending rules could potentially boost the personal finance of first-time buyers looking to enter the real-estate market.
- Uncertainty surrounding the upcoming Autumn Budget might create additional concerns among respondents, potentially impacting the business world and the housing-market in the near future.
