As we enter the second half of the year, we’re taking a step back and looking at the state of the UK property market, what’s happened so far and what we can expect from the next six months.
Here at FleetMilne, we’re always looking to provide deeper insights into what’s going on around the UK, whether you’re an investor, a buyer or a landlord looking for support with your property.
Midlands and the North buck the pricing trend
One of the key things we’ve seen this year is a growing trend of competitive pricing from sellers. The average price of a UK property coming to the market has dropped by 1.2% between June and July, meaning the year-on-year difference in prices is now just +0.1%.
When we break this down at a regional level, the main contributors to the decrease are the South West and London markets, both of which have seen prices fall by at least 1%.
On the other hand, the Midlands and the North are bucking this trend, led by cities that have all seen growth over the last 12 months. Birmingham (+2.4%), Manchester (+3.5%) and Liverpool (4.1%) are all key cities that have remained resilient, reinforcing their position as key destinations for buyers.
Interestingly, the West Midlands, largely anchored by Birmingham, has also led the market in annual stock change, with around 12.8% more stock coming into the market over the last 12 months. This reflects a sentiment we’re seeing on a national level, where the number of homes available is still at its highest number in a decade.
Activity in the market remains strong
Another key trend is the amount of sales activity occurring across the market.
According to Rightmove, the number of sales being agreed is 5% higher than at this time last year, while the number of buyers getting in touch with estate agents about homes for sale has increased by 6% against 2024 numbers.
This has created an active cycle in the current market. Sellers are seeing a competitive market and, in a bid to stand out from the crowd, are setting competitive prices to ensure their home is sold. Buyers, meanwhile, have never had more choice or opportunity to spot an over-priced property, which is fuelling this rise in activity.
Ultimately, all of this means even with the stamp duty increase in April, which saw many sellers move their plans forward, activity has remained healthy throughout the first half of the year as we head into the usually quieter summer months.
Experts revise price growth forecasts
As we mentioned above, house prices are largely being kept in check due to the sheer amount of stock entering the market and the shift to more competitive pricing.
With this new information in hand, many experts are taking the halfway point of the year as an opportunity to revise their forecasts.
Rightmove has halved its 2025 price growth prediction from 4% to 2%, citing ‘seller competition’. They do, however, maintain that the UK may see 1.15 million transactions before the year is over.
Savills has also reduced its forecast. After initially predicting 4% growth over the year, they now believe average prices will only increase by 1%.
While these next few months are typically quieter, we can expect the end of the year to deliver a flurry of activity, particularly if the level of transactions stays at this level.
