Zoopla’s House Price Index: June 2025
Adapted from an article by Richard Donnel, Zoopla’s Research Director, 30 June 2025
More sales, rising supply, plenty of demand and modest house price growth shape a steady UK housing market in June 2025.
Key takeaways
- Sales are being agreed at the fastest rate for 4 years
- 14% more homes for sale is boosting buyer choice
- UK house price growth slows to +1.4%
- House prices are rising more quickly in affordable markets
- Prices are falling in more expensive markets with average values over £5
- The average time to sell is 45 days, in line with June 2024
- Setting the right price is essential to achieving a sale
Average UK house prices: last 3 months
The average house price in the UK is £268,400 as of May 2025 (published June 2025). This is a rise of 1.4% or £3,690 over the past year.
6% more sales as house price growth slows to +1.4%
The number of sales being agreed continues to run at the fastest rate for 4 years. However, this is starting to steady as we begin the seasonal summer slowdown.
Sales agreed in the last 4 weeks are up 6% on last year, as more homes for sale bring more buyers into the market. There are more sales year-on-year across all regions and countries of the UK.
But more sales doesn’t mean house prices are rising more quickly. In fact, house price growth is slowing, with a rise of just 1.4% in the year to May 2025.
This is higher than the 0.3% increase recorded a year ago but lower than the 2% rise in February.
People continue to be price-sensitive with their moves, with cost of living pressures and higher interest rates impacting affordability. While UK earnings are rising at 5% a year, inflation levels mean further rate cuts are unlikely in the coming months.
These factors are limiting house price growth, despite demand for homes remaining higher than a year ago.
The affordability challenge is particularly stark in housing markets with higher average prices, which creates an additional hurdle for home buyers.
High supply of homes for sale linked to lower house price growth
There is a clear link between the rise in supply and the slowdown in house price growth.
With 14% more homes on the market than a year ago, greater choice for buyers is a key factor holding back house prices.
Affordability is the most important influence on house price growth
In places with cheaper properties, house prices are rising more quickly. On the other hand, expensive areas are seeing slower price rises or even price falls.
House prices rising fastest in affordable areas
House prices are 2.7% higher in markets with average house prices below £200k, and 1.9% higher in markets priced between £200k and £250k. Together, these markets account for 50% of UK homes.
Selling your home? Realistic pricing is vital
The key message for sellers is the need to be realistic on pricing if you want to move home in 2025.
Be sure to discuss your marketing strategy with your estate agent, and you could consider adjusting the price to attract more interest. The good news is that there’s demand for homes and a desire to move, but careful pricing is key in the current market.
How long will it take to sell your home?
The average time to sell is 45 days or 7.5 weeks, broadly in line with this time last year. This is the time between a property being listed for sale and being sold subject to contract.
What’s next for the housing market in 2025?
There’s positive momentum in the UK housing market, with strong sale trends showing a broad desire to move house in 2025.
Buyers will continue to feel the benefits of plenty of choice this year, as well as improved mortgage affordability. This has already given a 20% boost to buying power for those using a mortgage, helping more people make a move in 2025.
If you’re planning to sell your home this year, remember that buyers remain price-sensitive, especially in high-value markets. These areas also face the most competition in terms of the number of homes for sale, so choose an agent with a strong marketing strategy and realistic pricing approach.
Overall, there will continue to be a healthy number of sales in 2025 as sales remain on track for 5% growth, while house price rises will remain steady in the 1-2% range.
To view the full report, please visit
https://www.zoopla.co.uk/discover/property-news/house-price-index/
Please remember: YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
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