The UK property market is showing surprising resilience in summer 2025, with house prices rising by 6.1% annually in some regions while falling by 5.0% in others, according to the latest data from Zoopla.
Key Market Trends
1. Regional Price Variations
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Growth Leaders: Certain areas are seeing 6.1% annual price increases, driven by strong demand and limited supply.
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Declining Markets: Other regions have experienced 5.0% drops, reflecting affordability pressures and higher transaction costs.
2. Stamp Duty’s Uneven Impact
The end of temporary stamp duty relief in April 2025 has hit buyers differently across the UK:
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Southern England: Higher property prices mean stamp duty costs are significantly more burdensome than in other regions.
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More Affordable Areas: Buyers in lower-priced markets feel less of a pinch, keeping demand steady.
For deeper insights on stamp duty changes, visit Gov.uk.
3. Sales Activity Defying Seasonal Norms
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Demand up 11% year-on-year
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Agreed sales 8% higher than summer 2024
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Buyers are rushing to complete purchases before the traditional August slowdown
Why the Market Is Defying Expectations
Mortgage Rule Changes Boost Borrowing Power
Recent Financial Conduct Authority (FCA) clarifications have allowed lenders to offer larger mortgages, supporting buyer demand.
But Stamp Duty Is a Growing Concern
With temporary reliefs expired, buyers are factoring higher taxes into their offers, which could suppress price growth in high-cost areas.
For expert mortgage advice, check MoneySavingExpert.
What’s Next for UK House Prices?
Zoopla has halved its 2025 price forecast, anticipating that:
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Southern England may see slower growth due to tax burdens.
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More affordable regions could outperform as buyers seek better value.
For ongoing property market analysis, follow Rightmove’s House Price Index.
