Navigating the Market: Your Essential Update on UK Property

Whether you intend to move or not, there always seems to be a general level of interest in the UK housing market.  Surprisingly, it featured quite heavily in the Government’s recent Spending Review, with a near £60 billion pledge to address long-standing housing sector issues.  

• £39 billion for a new 10-year Affordable Homes Programme 
• £4.8 billion in financial transactions between 2026 and 2030, stimulating private housebuilding investment 
• Additional infrastructure and land remediation funding to support new housing development 
• £13.2 billion between 2025 and 2030 for the Warm Homes Plan 
• An extra £450 million is allocated to help courts tackle case backlogs and improve productivity by 2029 - this is particularly relevant given the new powers tenants will have under the Renters’ Rights Bill.  

So, what’s happening in our towns, right now?  

In their recent review meeting, the Bank of England’s Monetary Policy Committee held the base rate at 4.25%. It comes as inflation remains above the Bank’s 2.5% target, at 3.4%.  Whilst this may disappoint a handful of buyers who were hopeful of a reduction, given the higher than expected inflation rate, most were expecting this decision.  

Whilst wider economic pressures may add an air of uncertainty, those committed to buy and sell are not being thrown off course by these decisions.  The 2025 market remains robust, with all the essential elements of a positive market still ever present: 

• New stock coming to market
• New buyers registering
• Sales are being agreed
• Mortgage approval numbers are up

Headline statements from Rightmove in their June House Price Index:
“After new records were set in April and May, the average property price fell 0.3% (- £1,277) in an unusual dip for June. New sellers are lowering their price expectations in light of the decade-high level of buyer choice.  Buyer activity remains resilient with sales agreed 6% ahead of the same month last year and being the highest since March 2022.”

Affordability continues to be one of the main issues this year.  The graph below shows the amount a first-time buyer needs to spend monthly on either rent or mortgage payments.  First-time buyers are caught in a trap whereby their rental costs prohibit the ability to save the deposit necessary to purchase.  Matt Smith, Rightmove’s mortgage expert, said:  “When you consider that many future first-time buyers are trying to save up their deposit, while paying advertised rents which are 41% more than five years ago, the challenge for this group in particular is clear.”


  
Whilst there was no rate cut this time round, the general opinion is that further cuts are likely this year.  This helps to boost affordability and continued mortgage product competition. 

Whilst we navigate the choppy waters of the market, our advice to those would-be sellers, buyers are more informed than ever and currently have more choice than they have had for years. A strong data-led strategy will always outperform a speculative one, and pricing from the outset is key.  “Homes which need a reduction in price during marketing can take over two months longer to find a buyer and are also more likely to have a sale fall-through.”  Simon Gates, UK Property Market Data Analyst.  

For bespoke advice, our expert teams are on hand to help.  Please contact your nearest branch for guidance specific to your needs.