The 2025 property market has already delivered its fair share of twists and turns, and the pace shows no sign of slowing as we head into summer. Both global and domestic factors continue to shape the landscape, keeping buyers and sellers on their toes.
The year began on a strong note, with a surge in new listings and eager buyers hoping to complete purchases before the temporary Stamp Duty Land Tax (SDLT) reductions in England ended on March 31st.
The first quarter highlights this momentum, according to Twentyci: property listings rose by 3.7% compared to Q1 2024, exchanges jumped by over 24%, and sales agreed were up 9.3% year-on-year.
Market conditions, however, are varying across the UK. While the North East remains especially active, the South East has proven more of a ‘challenge’ for sellers.
The end of the SDLT relief brought a predictable dip in April activity, as many transactions were pushed forward into March.
Added to this, news of increased US tariffs unsettled financial markets, prompting some buyers to pause.
Sellers, on the other hand, have remained committed, resulting in the highest number of properties for sale in years—a welcome development for those looking to buy, but a signal for sellers to price realistically to attract attention.
May however has brought renewed optimism. The UK has secured new trade deals with both the US and India, and the Bank of England’s decision to lower the base rate to 4.25% on May 8th has improved affordability for many.
The market so far has seen plentiful properties for sale, buyers are active and making offers, and although a touch slower than in March, it signals a good time to secure a new home.
Regional and Property Type Trends
According to the latest Land Registry data, UK property prices rose by 5.4% year-on-year to the end of February 2025. Growth rates vary across the nations:
- England: 5.3%
- Wales: 4.1%
- Scotland: 5.7%
- Northern Ireland: 9%
Regional differences in house price growth are clear: Areas with high-priced properties like London are up by 1.7%, while the North East saw a 7.9% rise. Detached homes in London gained 3.9% on average, but flats dipped slightly. In the North East, detached homes surged by 9.2%, with flats up 5.3%.
Unusually for the property market, according to Rob Owen, Head of Research for esurv “Overall, the housing market reflects a two-tier dynamic, with northern regions reaching fresh market highs while southern regions, particularly London, continue to face affordability constraints.”
This time last year house prices in London fell by more than 6%, whereas today they are experiencing a small fall.
Conversely, the North East experienced barely any drops this time last year and is experiencing property growth on average of just under 6%.
It’s unsurprising to see this happen as increased BBR has impacted the affordability of those purchasing expensive properties in the East and South of England more than those searching for homes in the North and midlands.
It’s worth noting that the property market is made up of countless micro-markets. National and regional averages provide useful context, but the real story is always local.
Sellers who price competitively and respond to local demand are still achieving strong results, especially when buyer competition is present.
Looking Ahead
The outlook for the rest of 2025 is positive. Mortgage rates are trending down, with some lenders now offering sub-4% deals for buyers with larger deposits and those fixing for two or more years.
The recent base rate cut and forecasts for further reductions—to as low as 3.5%–3.75% by year-end—are expected to further improve affordability and support steady market activity.
If you’re considering buying or selling, now is a good time to seek tailored advice. Local property experts can provide up-to-date insights on your specific area and property type, helping you make confident decisions in a market that rewards those who stay informed and adaptable.
The Reeds Rains Content Marketing Team
