Winter 2025 Property Market Update
Each season we review what’s happening in the property market nationally and what it means for buyers, sellers, landlords and tenants locally. This winter update looks at pricing, sales activity, mortgages, lettings and the impact of the Autumn Budget, using independent market data alongside what we’re seeing on the ground.
The UK housing market at a glance
The housing market has shown underlying resilience through the second half of the year. Despite political and economic uncertainty in the run-up to the Autumn Budget, transaction levels and prices have remained steady.
The average UK house price reached £272,995 in August, representing annual growth of around 3%. While this is slightly lower than earlier in the summer, it points to a market that is stable rather than stalled, with buyers and sellers continuing to move for the right reasons.
Interest rates, inflation and mortgages
The Bank of England has held the base rate at 4%, taking a cautious approach as inflation remains above target. Inflation has eased slightly and is expected to continue improving into 2026, which should provide some longer-term relief for borrowers.
Mortgage rates edged up slightly at the start of autumn after a period of stability, with average two- and five-year fixed rates increasing marginally. That said, the range of mortgage products available remains strong, with far more choice than was available two years ago.
Mortgage approvals have remained resilient, sitting above long-term averages, which is a positive indicator for underlying housing demand.
Sales market: steady but price-sensitive
Sales activity has remained relatively robust, particularly given the uncertainty seen earlier in the autumn. Transaction levels in September were higher than the same period last year, supported by needs-based movers and buyers who had already committed to moving.
Confidence dipped slightly ahead of the Budget, but with greater clarity now in place, we would expect activity levels to normalise as affordability, pricing and property quality return to being the key drivers of the market.
Lettings market update
As expected for the time of year, rental activity has eased from the summer peak. After several years of rapid rental growth, the market is now showing signs of stabilisation.
Average UK rents are £1,345 per month, with annual growth slowing to 1.4%. Rental supply has improved compared with last year, although available stock remains well below pre-2019 levels, which continues to limit choice in many areas.
Void periods have increased slightly as seasonal demand softens, but well-presented, sensibly priced homes continue to attract interest.
The Autumn Budget: what it means for property
The Autumn Budget has provided much-needed clarity after months of speculation. The key announcements for property were a future mansion levy on homes over £2 million from 2028 and a modest increase in property income tax from 2027. There were no changes to capital gains tax, which was welcomed by many homeowners and landlords.
Ahead of the Budget, uncertainty caused many buyers and sellers to pause. Buyer demand dipped year-on-year and activity at the top end slowed. Now that the details are known, confidence is expected to improve, allowing the market to refocus on affordability and lifestyle-driven moves.
Regional and local market conditions
Across the southern region, market activity remains mixed. Some areas have seen stronger levels of transactions, while others are more subdued, reflecting differences in affordability, stock levels and local demand.
Locally, activity continues to be driven by realistic pricing and good presentation. Homes that are competitively priced from the outset are seeing stronger interest, while overpriced properties are taking longer to secure a buyer.
This is a good place to add one short paragraph about what you are seeing day-to-day in your local market.
How long is it taking to sell?
The average time to sell has increased slightly, rising to around 39 days in October. While this is longer than during the summer, it remains broadly in line with more normal market conditions.
As homes take longer to sell, accurate initial pricing and ongoing feedback are increasingly important. Properties that are withdrawn and later relisted are far less likely to achieve a sale than those that are sensibly priced and adjusted early if needed.
Housing supply and new homes
New home delivery has slowed slightly over the past year, with completions running below previous levels. While the Government has reaffirmed its long-term housing targets, supply constraints are likely to remain a factor in the market, particularly in high-demand areas.
This ongoing imbalance between supply and demand continues to underpin values, even as affordability pressures shape buyer behavior.
Our view as local property experts
This winter’s market is best described as measured and realistic. Buyers are active but cautious, sellers need to price carefully, and good advice matters more than ever.
If you are thinking about selling, buying, letting or reviewing your plans for the year ahead, we’re always happy to offer straightforward, local advice tailored to your situation.
Data sources
Market data sourced from PriceHubble, Dataloft, HMRC, ONS, the Bank of England and industry bodies.