UK Property Market Update | July 2025

What buyers and investors need to know now

As we move into the summer of 20252, the UK property market is showing a of cooling prices and steady long-term confidence. Here's a quick breakdown of the latest developments, what's driving changes, and what it all means for you.

House Prices Dip Slightly

House prices fell by 0.8% in June, the biggest monthly drop in over a year. The average home now costs about £271,600, according to Nationwide (Reuters).

This drop follows a strong start to the year, partly driven by buyers rushing to complete before stamp duty changes came into effect in April.

Regional Hotspots Still Going Strong

While prices have dipped in some areas, others continue to grow, especially outside of London:

Northern Ireland: Still leading the pack, with nearly 10% annual growth
Scotland, Wales & Northern England: Performing well
London & South West: Seeing the slowest growth, with some central areas down 3–4% (The Times)

What’s Causing the Shift?

Stamp duty rollback: Pulled forward a lot of buyer demand into Q1
More homes for sale: Spring always brings more listings, giving buyers more options
Interest rates still high: Holding back some first-time buyers

What’s Next for the Market?

Experts predict a calmer but stable market for the rest of 2025:

Knight Frank expects 3.5% price growth this year
Savills forecasts around 4%
Zoopla sees 2.5% gains (MoneyWeek)

Even though prices dipped in June, most analysts agree we’re not in a crash, just seeing the market settle after a busy start to the year.

What Are Agents Saying?

Survey results from RICS show buyer enquiries have dropped for five months straight, but many expect a “steady summer” ahead.

The rental market is also worth watching: demand is rising while supply falls, meaning rents could increase again this quarter. (The Times)

Final Thought

We’re in a more balanced market that’s less frenzied, more strategic. For buyers and investors alike, now’s a great time to focus on value, strong locations, and long-term growth.

Whether you’re looking to expand your portfolio or enter the market, Elborn Property Group is here to guide you through every step.