House price growth stabilises over summer as buyers remain price sensitive – London Wallet

House price growth has eased in recent months, but the market now appears to be finding its footing, according to the latest figures from Zoopla.

Average UK house prices are currently 1.3% higher than this time last year, suggesting a period of stabilisation following earlier deceleration. This is below the 2.1% price growth recorded at the start of 2025, but higher than 0.6% this time last year. The average UK house price is £270,600, £3,560 more than a year ago.

Agreed sales are up 5% year-on-year, indicating steady buyer activity, the data also revealed. However, speculation around potential tax reforms may begin to weigh on demand – particularly in the £500,000+ price bracket, which represents around a third of all homes currently for sale.

Accurate pricing remains key to achieving a timely sale. Homes that require a price reduction take, on average, 2.4 times longer to sell than those priced correctly from the outset.

Regional markets continue to show variation. In July, the average time to sell in northern regions was 27 days, compared to 39 days in the south.

One in ten homes saw a reduction in asking price last month—well above the five-year average of 6%—highlighting the continued strength of the buyers’ market.

As the autumn selling season approaches, sellers looking to move in 2025 are strongly advised to speak with a knowledgeable local agent. Understanding current market dynamics and setting the right asking price from the start will be essential to achieving a successful sale.

Buyer demand and sales agree moderate over peak summer months 

Growing media speculation around possible tax reforms – including the removal of stamp duty and the introduction of an annual property tax for homes valued over £500,000 – is generating uncertainty among prospective buyers in the lead-up to the Autumn Budget.

Proposed changes also include the introduction of capital gains tax (CGT) on the sale of homes valued above £1.5m, potentially affecting second-home owners and landlords. While CGT is not applied to main residences, such speculation could influence activity at the top end of the market, even though only 4% of homes currently for sale fall into this price bracket.

Historically, tax changes have had a noticeable impact on buyer behaviour and market activity. In this case, uncertainty may prompt a “wait and see” approach, especially among those purchasing homes around the £500,000 threshold. Purchases below this level could benefit from potential tax relief, while those above may face added costs. A third of homes currently listed for sale are priced over £500,000, with the impact most strongly felt in higher-value markets such as London and the South East.

Meanwhile, the average time a property spends on the market remains a critical indicator of housing market health and is closely linked to house price growth. In the North West and North East of England, homes sold in an average of 27 days in July—23% faster than the national average of 35 days. This trend, driven by a combination of strong demand, better affordability, and limited stock, is contributing to house price growth of 2.7% and 2.1% respectively in these regions.

Time to sell by region across England and Wales

Source: Zoopla Research 2025

In contrast, regions across southern England are experiencing a stronger buyer’s market. The supply of homes for sale is higher than a year ago while higher house prices create affordability problems that have extended the time it takes to agree a sale to an average of 39 days in July. This is 11 per cent longer than the national average. Longer sales times  are creating less pressure on house prices in the south, where house price growth sits as low as 0.3 per cent in the South East and South West.

While a home’s presentation and local market conditions are important factors behind sales times, getting the asking price wrong for the local market can impact levels of buyer interest. Homes that need to reduce their asking price to attract more interest take, on average, 2.4 times longer to sell than those that do not need a price reduction. This extended time on the market from listing to an agreed sale is in addition to the four to six months it takes for a sale to usually complete (subject to contract).

Market conditions have softened since the end of the stamp duty holiday in March. As a result, there has been a steady increase in the proportion of homes for sale with asking price reductions to try and attract buyer interest. In July, one in ten homes registered a cut to the asking price, well above the five-year average of six per cent, a further indication of why house price growth has slowed in recent months.

Buyers market: more homes with cuts to asking prices to attract interest

Analysis of markets with the most unsold homes shows that coastal areas across southern England have the most competition among sellers. In Truro, Exeter, and Bournemouth, more than a quarter of homes for sale have been on the market for over six months, more than a third higher than the average. This increased choice, a result of a larger number of second homes for sale in response to higher council tax, is also impacting prices, which are 1.1% and 1.4% lower than a year ago in these markets.

Other areas with an above-average stock of unsold homes include York, Torquay, and Llandrindod Wells in Wales, markets where sellers need to be most realistic on price if they want to sell this year. In contrast, there are markets with a lack of supply, including Dundee, Wolverhampton, outer suburbs of London, and Northampton.

Richard Donnell, executive director at Zoopla, said: “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.

“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. The risk of being too ambitious on price is your home taking more than twice as long to find a buyer – or not selling at all.

“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.”

Property industry reacts to Zoopla House Price Index