The latest House Price Index from Zoopla shows higher buyer demand and more sales agreed than the same period last year, with house price growth stabilising over the summer months.
In the four weeks to 17 August, year-on-year demand increased by 4%, sales agreed were up by 5% and the stock of new homes for sale rose by 10%. The average house price is now 1.3% higher than a year ago – below the 2.1% growth recorded at the start of 2025, but higher than the 0.6% from this time last year. The average UK house price is £270,600, £3,560 more than a year ago.
Improved market conditions have led to a steady increase in the number of homes for sale and a higher than average number of reductions, the report notes. In July, one in 10 homes were reduced, well above the five-year-average of 6%. However, Zoopla warns that speculation over possible changes to property taxes could create uncertainty for buyers and trigger a ‘wait and see’ strategy ahead of the autumn budget.
‘Media speculation over possible tax changes, including the removal of stamp duty and its replacement with an annual property tax for homes over £500,000, and a requirement for sellers of homes over £1.5m to pay capital gains tax, has attracted a lot of interest’, the company commented.
“The risk is that this creates uncertainty for home buyers in the coming weeks ahead of the autumn budget. History shows that tax changes can impact market activity and buyer expectations.”
Regionally, Zoopla’s analysis of markets with the most unsold homes found the most competition amongst sellers in coastal areas across southern England, with more than a quarter of homes for sale in Truro, Exeter and Bournemouth on the market for over six months. Local markets with a lack of supply include Dundee, Wolverhampton, the outer suburbs of London and Northampton.
‘Sellers need to understand local market conditions when considering how to market their home, setting the right price and how quickly they would like to sell’, Zoopla executive director Richard Donnell said.
He added:
“There is plenty of demand for homes and more people are looking to move. However, buyers also have much greater choice to choose from, especially across areas of southern England. There is a clear link between buyer choice and price inflation and how long it is taking homes to sell.
“We expect UK house price inflation to continue in a range of 1.5-2% over the rest of the year. There are signs that prices are firming in southern England but price growth is slowing across northern regions. The market continues to record seasonally strong sales as those selling their home seek to secure their next home. The market remains on track for 5% more sales in 2025, at 1.15m.”
Stuart Bailey, head of London super-prime sales at Knight Frank, commented on the report:
“Good advice around not just pricing but strategy, from experienced professionals, has never been more important. The autumn market is about to begin and this year will be shrouded by speculation of how to decipher the government’s messaging on property tax. Either way, sentiment impacts decision making and the longer a property takes to sell (if mis-priced for example), the bigger the risk of something going wrong, as buyers become ever more hesitant, and the risk of market slow down increases.
Propertymark CEO Nathan Emerson said Zoopla’s findings are a welcome sign for buyers. He added:
“Despite property transactional taxes increasing in some nations and financial and economic pressures continuing for many, there still seems to be plenty of property choice for buyers. It remains important that sellers continue to have realistic price expectations and place their property on the market accordingly to help empower an efficient sales process.
“It is also important to consider the crucial role that housing plays within the wider economy, and it is positive to see commitments from all governments across the UK to deliver much-needed new housing stock to keep pace with predicted population growth. We are also hearing of future potential proposed changes regarding Stamp Duty. However, it is vital that tax reform is conducted in a way that does not penalise aspiring homeowners with additional costs that hinder their chances of moving house.”
