>> Key property market highlights:

• Year-on-year, house price inflation has experienced 1.5% growth* 
• Buyers are showing resilience, with sales agreed up 1.1% year-on-year* 
• Northern regions continue to outperform, with the North West recording yearly growth of up to 3.6%* 
• Rental prices have increased by 2.5% year-on-year^ 
• Average rent on new lets is £1,340 per month^ 

The UK property market has proven to be resilient as we continue into the summer months. Despite ongoing uncertainty, buyers continue to drive market activity. House prices have also risen 1.5% nationally, with the average UK house price now standing at £271,900*.  

Buyer demand has decreased 9.6% since last year, but it is important to note that committed buyers are present in the market. First-time buyers are targeting properties with values 4.3% higher than a year ago, showing positive signs for the housing market.  

Regional disparities remain evident, with the North West leading in annual price growth at 3.6%, supported by affordability and strong local demand. Conversely, London has remained steady with 0% change due to affordability pressures.* 

What this means for sellers

The supply of homes for sale has continued to grow, with 3.4% more properties on the market compared to this time last year.* For sellers, it reinforces the importance of making a strong first impression and ensuring their property is priced correctly from the outset to stand out from the competition. 

While casual browsers and those sensitive to higher borrowing costs have stepped back, buyers with a clear intention to move have continued to make offers, pushing sales agreed.  

What this means for buyers

If you're planning to buy a new home, the current market dynamics may be beneficial. With more properties coming onto the market compared to this time last year, buyers have a wider choice of homes to consider.* 

Mortgage rates have risen in recent months as a result of global economic uncertainty, which has understandably impacted consumer confidence. However, there are encouraging signs that conditions are beginning to improve, with rates easing from the peaks seen earlier this spring.  

For buyers who are well-prepared and realistic about their budget, the market is offering greater flexibility than it did a year ago.*

Your regional property market overview

The UK property market continues to show a clear regional divide, with more affordable northern areas once again outperforming much of southern England. The North West remains the strongest-performing region, with annual house price growth of 3.6%, followed closely by the North East at 3.4% and Scotland at 3.0%. Better affordability in these locations is helping to keep buyer demand resilient. 

Meanwhile, growth across much of southern England has been far more muted. House prices in London have remained flat over the past year, while the South East has seen a slight decline of 0.2%. The South West has recorded marginal growth of 0.1%, and the East of England has risen by 0.8%.  

Elsewhere, the Midlands has delivered stronger performance, with annual growth of 1.6% in the East Midlands and 2.1% in the West Midlands. Wales is also outperforming the national average, with annual house price growth of 2.5%. 

Your UK rental market snapshot

The latest rental figures show that the average monthly rent across the UK including London has reached £1,340 per calendar month (pcm). This represents a 2.5% increase compared to the same period last year and a 1.1% rise from the previous month.^ 

Excluding London, average rents for newly agreed tenancies have increased by 1.0% month-on-month to £1,146 pcm. Year-on-year, rents are now 1.8% higher, reflecting continued demand from tenants across many regional markets.^ 

In London, average rents have climbed to £2,161 pcm, up 1.5% on the previous month and 3.5% higher than a year ago.^ Demand in the capital continues to outpace available supply, helping to support rental growth across the city. 

The North East has matched London's annual rental growth at 3.5%, while Scotland has recorded the strongest increase of any region, with rents rising by 3.9% year-on-year.^ These figures highlight the strength of rental demand in a number of markets across the UK. 

Elsewhere, rental growth has been more modest. The South East has seen annual increases of 0.2%, while the South West has recorded growth of 0.9%. Average rents currently stand at £1,439 pcm in the South East and £1,215 pcm in the South West.^