Activity in the UK housing market is stronger than it was 12 months ago, defying the usual seasonal slowdown seen during the summer, according to the the latest Zoopla report.
Housing market activity has surged, with buyer demand up 11% and agreed sales up 8% year-on-year, defying typical summer slowdown.
However, national house price inflation has slowed to 1.3%, fuelled by a 12% increase in homes for sale and higher stamp duty costs for many buyers
Zoopla now anticipates 5% more sales in 2025 than last year, but price growth is expected to remain in low single digits, a downward revision from the previously forecasted 2% to 1%.
Zoopla halves house price growth forecast despite greater market activity – London Wallet
Industry reactions:
Tom Bill, head of UK residential research at Knight Frank: “The UK housing market is following a similar pattern to the UK economy this year. Activity was pulled forward into the first quarter and, after a subsequent lull, the recovery has not been as strong as hoped. The market hasn’t faced a general election in 2025 but the uncertainty of another autumn Budget means some consumers appear to be already adopting the brace position.
“High levels of supply, in part caused by April’s stamp duty cliff edge, will also keep downwards pressure on prices in the short-term. Markets are pricing in two further rate cuts this year, but if inflation comes under control more quickly than expected, that would boost demand by trimming mortgage rates further below 4%.”
Nathan Emerson, CEO at Propertymark: “As the year advances, it remains upbeat to witness greater levels of market activity when compared to only twelve months earlier. Both affordability and consumer confidence continue to steadily improve, with more competitive mortgage products gradually finding their way to the market.
“However, higher Stamp Duty costs have impacted house prices in some cases, and this is creating additional regional disparities in terms of house price growth. The UK Government may need to reconsider the real world effects that increased Stamp Duty thresholds across England and Northern Ireland have caused, to better invigorate the market across the long-term.
“It remains vital the UK government and devolved administrations meet their individual housing targets to keep pace with anticipated demand over the forthcoming years and to ensure there is a viable mix of affordable housing constantly flowing into the marketplace for those who aspire to buy.”
Matt Thompson, head of sales at estate agency Chestertons: “Compared to summer of last year, we have seen a more active property market which has been driven by an influx of vendors putting their home up for sale. This has given some house hunters a larger selection of properties to choose from which inevitably led to more contracts being exchanged. Some buyers, however, are still pausing their search in the hope that the Bank of England will announce another rate cut in August.”
David Powell, CEO Andrews Property Group: “The market is continuing to find its new normal since the stamp duty incentive was withdrawn at the end of March 2025. In addition businesses are coming to terms with the increases in National Living Wage and National Insurances. The market continues to show incredible resilience, however the slow down in house prices is starting to impact consumer confidence illustrated by the increased numbers of properties currently on the market for sale.
“Without a reduction in interest rates or Government intervention its difficult to see any material change for H2. The obvious and immediate route is to create a more palatable and permanent solution to stamp duty to help ignite the market. The Government will certainly need a more flamboyant market to provide confidence to developers to build towards the targeted 1.5 million homes. The affordability challenge to buyers remains and I would advocate for immediate remedies to help consumers buy with confidence.”
Babek Ismayil, founder and CEO, homebuying platform OneDome: “This latest data from Zoopla confirms what many in the sector have felt for months – the property market is now clearly split between North and South. While buyer demand and sales are holding up remarkably well, the impact of stamp duty changes is being felt hardest in London and the South East, where affordability was already stretched. First-time buyers in these areas now face an extra financial hurdle, with stamp duty costs eating into budgets and softening price growth.
“In contrast, northern regions, Wales, and Northern Ireland are seeing healthier price rises and greater market momentum, buoyed by more affordable stock and stronger local demand. This divergence is reinforcing a two-speed housing market – one driven by opportunity and affordability in the North, and one hampered by tax burdens and oversupply in the South.
“For now, we’re firmly in a buyer’s market – especially in higher-value areas – and that’s unlikely to change until borrowing costs and taxation ease further.”
Zoopla halves house price growth forecast despite greater market activity
