The UK housing market is showing strong signs of recovery, with May 2025 marking the most active month for home sales since the pandemic-fueled boom of 2021, according to the latest Zoopla House Price Index.

Driven by improved mortgage affordability and a sharp rise in housing stock, buyers and sellers have returned to the market with renewed confidence. Sales agreements have now reached their highest level in four years.

More Homes on the Market in 2025

Property listings have surged across the UK, with the number of homes for sale up by 13% year-on-year, offering buyers a broader selection. Zoopla notes that this increase in supply is one of the key drivers behind the spike in market activity.

Better Mortgage Deals Fuel Demand

Recent changes in mortgage affordability assessments now allow borrowers to access up to 20% more funding, easing pressure on budgets and helping more people move. This has led to a 6% rise in sales agreements compared to May 2024.

Richard Donnell, Executive Director at Zoopla, commented:

“More homes for sale means more buyers looking to move home. With more competitive mortgage rates and improved affordability criteria, we’re seeing a notable increase in transactions.”

Donnell also highlighted regional variations:

“Stronger price growth and sales activity are evident in the North of England and Scotland, where homes remain more affordable. In contrast, the South of England continues to feel the strain of high prices, which is holding back growth.”

House Prices in the UK – Up 1.6% Annually

Despite the uptick in transactions, UK house prices have grown at a modest pace—up 1.6% over the past 12 months. The average house price in the UK now stands at £268,250, with properties typically selling for around £16,000 below asking price.

Top-Performing Regions

The North West continues to outperform the rest of the country. Cities such as:

• Blackburn – up 5.8%
• Wigan – up 4.4%
• Birkenhead – up 4.1%
• Liverpool – up 3%
• Manchester – up 2.5%

…are seeing strong buyer demand, pushing price growth and driving attention to surrounding areas.

Slower Growth in the South

In contrast, Southern England is experiencing subdued price growth:

• South East – up 0.5%
• South West – up 0.9%
• London – modest growth, despite a 17% increase in available housing

In these regions, increased supply is giving buyers more choice and power to negotiate, keeping prices relatively flat.

Scotland and Northern Ireland Lead in Price Gains

Scotland and Northern Ireland are seeing above-average price increases, buoyed by limited supply and fast-moving sales. However, Aberdeen remains an outlier with a 1.4% drop in house prices, reflecting its continued exposure to the underperforming oil and gas sector.

Industry Experts React to Market Trends

Tom Bill, Head of UK Residential Research at Knight Frank, remarked:

“This spring, buyers have a wide range of homes to choose from, which has made them more selective. Higher stamp duty for second homes and ongoing economic concerns are also dampening demand, so asking prices must be realistic to attract offers.”

Toby Leek, President of NAEA Propertymark, added:

“Despite ongoing economic uncertainty, it’s encouraging to see the UK property market is at its most active since May 2021. However, the strong performance in the North West highlights the need for greater affordability nationwide, so people across all regions can access local housing.”

Matt Thompson, Head of Sales at Chestertons, pointed to seasonal and monetary factors:

“After a brief Easter slowdown, house hunters returned in May, spurred on by the Bank of England’s interest rate cut to 4.25%. This not only motivated buyers but also brought more first-time buyers into the market. Meanwhile, sellers remained proactive, resulting in a significant increase in listings.”

Key Takeaways for Buyers and Investors

• The UK property market is gaining momentum in 2025.
• Improved mortgage affordability and greater choice are driving sales.
• Northern regions, especially the North West, are outperforming the South.
• Interest rate cuts and realistic pricing are attracting more buyers, including first-timers.

As house prices in the UK continue to rise moderately, staying informed on regional trends and market conditions is essential for making smart property decisions in 2025.