According to Zoopla’s June House Price Index, buyer demand in the four weeks to 20 June was up 11% year-on-year, accompanied by an 8% increase in agreed sales.
An average of 37 homes are listed for sale per estate agent branch, with more buyers actively looking to finalise deals before the start of the school holidays and the August slowdown. A 12% increase in national housing supply was recorded.
As a consequence of the improved availability of homes to buy, the rate of price inflation has now fallen to 1.3% from 2.1% in December, with the average UK house price sitting at £268,400.
Richard Donnell, executive director at Zoopla, said: “The housing market is broadly in balance. We’re seeing healthy levels of demand and sales, but this isn’t sparking faster price inflation. In fact, more homes for sale, particularly across Southern England, is re-enforcing a buyer’s market, keeping price rises in check. Many more homebuyers are paying stamp duty since April and want this extra cost reflected in the price they pay.
“While mortgage rates are holding steady, less stringent affordability testing has boosted buying power and is supporting more sales despite increased uncertainty.”
The new-build energy advantage
Sponsored by Halifax Intermediaries
Recent analysis by network Stonebridge found that borrowers took advantage of changes to mortgage affordability rules by upping their average loan size by more than £11,500.
Earlier this month, the Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) confirmed that lenders would be allowed to surpass the 15% loan-to-income (LTI) limit with immediate effect by making an application to do so. Since then, a number of lenders have made changes to their LTI criteria and stress rates to allow households to borrow more.
This, said Zoopla, has encouraged more buyers to try and secure a home purchase before the summer and is why buyer demand and sales agreed are higher across all regions and countries of the UK.
Higher stamp duty costs create a drag on price inflation
Higher stamp duty costs in England and Northern Ireland, following the end of temporary reliefs in April, are creating a drag on price inflation. More than 80% of homeowners now pay stamp duty on new purchases, compared to 49% before April 2025. The extra cost is up to £2,500 per sale, around 1% of the average UK home price.
Zoopla said buyers will be looking to reflect these increased buying costs in what they offer for homes, ultimately impacting agreed sale prices.
Donnell said: “At the start of the year, we predicted house prices would rise just 2%, at the lower end of forecasts for house price inflation. Prices are on track to be 1% higher over 2025, half the level forecast.
“Greater supply of homes for sale and mortgage rates remaining higher than expected are the key reasons for weaker growth. Low house price inflation is not a bad thing so long as there is enough market confidence for people to list their homes and make bids to buy homes.”
