"Ultimately, it's a choice for sellers between prioritising a specific sale price or setting a realistic price and agreeing a sale in a timely manner"
- Richard Donnell - Zoopla
UK house price growth has slowed to 1.4% as more homes become available, giving buyers greater leverage and curbing sellers’ ability to drive up asking prices, according to Zoopla’s latest House Price Index.
The average UK house price now stands at £268,400, which is £3,960 higher than this time last year. However, the pace of growth has softened from 2% earlier in the year, with values falling slightly in parts of London and southern England.
“House price inflation continues to be limited as supply outpaces demand in some areas,” said Richard Donnell, executive director at Zoopla. “The number of buyers and sellers agreeing home sales continues to increase year-on-year, demonstrating a continued desire of more households to move home in 2025.”
More homes for sale means slower growth
Sales activity remains brisk, running at the fastest rate seen in four years. The average estate agent now lists 37 homes, up from 32 a year ago. This 14% rise in supply is supporting a 6% increase in sales agreed compared to last year.
However, as more homes become available, the resulting boost in buyer choice has slowed price growth, particularly in regions where the supply surge is sharpest. In London, the South East and the South West, listings are up by 16–19%, while house prices in these areas have grown by less than 0.5% over the past 12 months.
Meanwhile, the North, West Midlands, and Scotland have seen more modest increases in supply, which has maintained an element of scarcity and supported stronger growth, ranging from 2% to 3%.
“However, buyers remain price-sensitive, especially in higher-value markets where the number of homes for sale has grown the most in the last year, boosting choice for home buyers,” Donnell explained. “Serious sellers need to be realistic on where they set their asking price in order to achieve a sale and secure a home move in 2025.”
High-value areas dip, while more affordable markets lead gains
Affordability remains a key factor. In areas where the average home costs more than £500,000, house prices have dipped by 0.2%. These higher-value markets represent 8% of the UK housing stock and are concentrated in parts of inner London and the South.
Some of the sharpest annual declines have been recorded in West Central London (WC, -4.3%), West London (W, -1.3%), Torquay (TQ, -1.7%), and Truro (TR, -1.3%).
In contrast, areas with lower average prices have performed more strongly. Prices in markets under £200,000 have risen by 2.7%, while those between £200,000 and £250,000 are up by 1.9%. These two price brackets together represent half of all UK homes.
The strongest growth, over 3.5% year-on-year, is evident in specific local markets, including Wigan (WN, 4.3%), Falkirk (FK, 3.8%), and Blackburn (BB, 3.6%).
In addition to affordability factors, changes in tax policy and rules targeting landlords and second homeowners are also weakening demand and pushing more properties onto the market, placing further pressure on prices in some locations.
Realistic pricing key to successful sales
Zoopla reports that the average time to sell a home is currently 45 days, roughly unchanged from last year. This varies by region, with the North East averaging 35 days and Wales at 57. In southern England, the time to sell consistently exceeds 50 days due to increased competition.
At the same time, 22% of properties have been on the market for more than six months without finding a buyer, while a further 23% have been listed for three to six months. The average time unsold homes spend on the market is 75 days.
Many sellers hold out for a price they believe their home is worth or need to achieve to move. However, this approach can delay transactions significantly.
“Ultimately, it's a choice for sellers between prioritising a specific sale price or setting a realistic price and agreeing a sale in a timely manner,” Donnell noted.
Industry professionals warn on the importance of initial pricing
“We’re delighted to be seeing increased vendor confidence this year, with more properties coming on to the market than 2024,” said Sarah Cartlidge, branch manager at Fraser Reeves estate agent in the North West. “However, property price remains key to agreeing a sale. We’re always keen to emphasise to prospective vendors that they do need to price positively and realistically from the get-go, in order to secure a good buyer in good time, and to make the best first impression possible when their property hits the market.”
She added, “We know that any property can sell for the right price, taking into account the local competition and the particular characteristics of each individual home.”
Tom Bill, head of UK residential research at Knight Frank, said, “The current supply glut has put downward pressure on asking prices, which sellers must take into account if they need to transact sooner rather than later. Geopolitical and tariff risks appear to be fading, which points to a smoother ride for the housing market in the second half of the year, which should be boosted by at least two rate cuts.
"However, the government’s non-existent financial headroom means tax rise speculation is likely to intensify ahead of the autumn Budget in a re-run of last year.”
Nathan Emerson, CEO at Propertymark, said, “It’s encouraging to see further house price growth, as people continue to approach the buying and selling process with improved certainty. Although we are still seeing elevated base rates currently sitting at 4.25%, we are starting to see some high street lenders offering sub-4% mortgage deals.
“We have witnessed the recent announcement of a National Housing Bank which hopes to combine a public investment of £16bn and a potential private investment of £53bn to help make 500,000 new homes a reality, which will likely be universally beneficial to all when it comes to homeownership.”
