Property Sentiment Index, September 2025
The OnTheMarket Property Sentiment Index explores how residence movers are feeling concerning the property market, supported by information from our personal platform. This version exhibits that the general public count on each gross sales and rental costs to rise over the subsequent 12 months whereas these planning to purchase, promote or lease stay assured about making their transfer inside the subsequent three months or, at most, inside a three-to-six-month timeframe.
Moreover, there’s an urge for food for reform inside the property tax system, with solely 12% wanting the present system to stay in place unchanged. Nevertheless, opinions are break up in the case of selecting a substitute.
Sentiment in direction of the property market
Gross sales market expectations
When waiting for the subsequent 12 months, slightly below half of property seekers imagine home costs will enhance, a small fall from 51% who mentioned the identical three months in the past, suggesting a slight wavering in confidence within the UK property market. In the meantime, 24% imagine costs will keep the identical, up from 21% within the earlier quarter, and solely 13% count on home costs to fall.
Vendor expectations
Amongst these trying to promote a property, 51% of all respondents, 4 in ten (39%) count on to obtain a suitable provide inside three months, whereas the identical proportion imagine this can occur in three to 6 months (38%). Simply over one in ten (13%) predict they’ll settle for a suggestion inside six to 9 months and 6% say inside 9 to 12 months.
Purchaser outlook
These trying to purchase a property are typically assured that it received’t take lengthy to discover a residence and have a suggestion accepted. Equally to the June version, 4 in ten imagine this can occur in three to 6 months, whereas an extra 27% count on it to take even much less time. Just below a fifth (17%) count on their search to take between six and 9 months.
Monetary confidence
Patrons stay optimistic with eight in ten (80%) saying they’re assured of their skills to afford their subsequent property buy. This contains 52% who’re very assured. In the meantime, 15% really feel not very assured or not assured in any respect and 5% say they don’t know.
New houses
Curiosity in new houses has remained regular amongst property seekers, with 42% more likely to think about one as their subsequent property, a change from 46% in June. In the meantime 38% say they’re unlikely, up from 37% in June.
Rental market sentiment
Contemplating rental costs, expectations mirror the shortage of provide and rising demand, as two-thirds (67%) count on costs to extend, an analogous proportion to June’s determine of 65%. In the meantime, 15% imagine rents will keep on the similar degree, whereas solely 5% assume they may fall.
Renter outlook
Regardless of expectations for rents to extend, these trying to lease stay assured of their capability to discover a property and have a suggestion accepted rapidly. Half imagine they’ll have a suggestion on a rental property accepted inside three months and an extra 30% count on it to take between three and 6 months. Fewer than one in ten (9%) imagine it would take six to 9 months (9%), with 5% anticipating 9 to 12 months and 6% foreseeing a wait of over a 12 months.
Present occasions and coverage developments
Housing targets
The federal government continues to face challenges in assembly its goal of 1.5 million new houses, with abilities and sources working low. It comes as no shock, subsequently, that nearly half of respondents say the goal is unlikely to be met. 1 / 4 (26%) say it is rather unlikely, whereas an extra 21% imagine it to be pretty unlikely. This represents little change in comparison with June’s outcomes of 49%.
Then again, 1 / 4 of respondents imagine the federal government is more likely to attain its goal of latest houses by the top of its time period in 2029. Of those, 8% say it is rather possible, whereas 18% imagine it to be pretty possible.
Stamp responsibility
Because the finish of the Stamp Responsibility vacation in March, there was a lot dialogue about whether or not the property tax system ought to evolve with a spread of concepts floated up to now. Amongst respondents, solely 12% imagine the present system ought to keep in place unchanged. 1 / 4 are in favour of holding the identical standards however spreading funds over a number of years somewhat than requiring them up entrance. In the meantime, an analogous proportion (21%) assist the newest proposition of introducing a property tax on any property valued over £500,000, with a better price utilized to properties value over £1 million. Solely 12% say they assist none of those three insurance policies and 30% mentioned they don’t know.
Rates of interest
Firstly of this 12 months, the Financial institution of England’s base price was set at 4.75% however has since dropped to 4%. In response, 30% of property In response,30% of property seekers say they’ve adjusted their search standards. The most typical change has been in searchers’ value ranges (13%), whereas 6% have modified the placement of their search and 4% have altered the variety of bedrooms of their potential properties. Some respondents deciding on “different” defined that they had determined to lease somewhat than purchase.
Trying to the long run, opinions are combined on what is going to occur to rates of interest. 1 / 4 of property seekers count on charges to proceed to fall (26%), whereas simply over a 3rd (35%) imagine they’ll keep on the present degree. Lower than one in 5 (17%) count on charges to rise once more. Round 1 / 4 (23%) say they don’t know.
Sentiment Abstract
Whereas confidence within the velocity of transactions stays robust amongst consumers, sellers and renters, consumers are additionally feeling optimistic about their capability to lift the funds wanted to buy their subsequent home.
Trying to present occasions, opinions are combined on what the way forward for property tax seems like, with property seekers break up as as to if the present system needs to be maintained or reformed. The 12 months’s rates of interest drops have affected the way in which some are trying to find property, as many predict charges to remain on the present degree or drop additional.
We’ll proceed to observe shifts in sentiment and market exercise within the months forward and supply up to date insights in our subsequent version. Hold studying for insights from OnTheMarket’s information and feedback from brokers across the nation on their experiences over the previous few months.
Insights from the OnTheMarket web site
Key phrases
Our key phrase search software helps property seekers refine their search based mostly on particular options they need of their subsequent residence.
For consumers, outside area is a transparent precedence with gardens that includes in 31% of key phrase searches. Parking can be extremely wanted (17%) together with garages (12%) whereas freehold properties and rural houses atrract comparable ranges of curiosity (each 7%).
Within the rental market, gardens once more high the checklist, showing in 29% of key phrase searches, with parking as soon as once more shut behind at 21%). Renters, nevertheless, have extra issues with 11% seek for “pets thought of”, 10% for “payments included” and seven% for “furnished”.
Property sorts
Filtering by property sorts stays on of probably the most broadly used search choices.
Amongst consumers, indifferent homes are the preferred selection (28%), carefully adopted by bungalows (23%). Semi-detached homes make up an extra 17% of searches whereas flats account for 15%.
Renters, however, present a robust desire for residences, which dominate 55% of filtered searches. Indifferent and semi-detached homes share comparable demand with 12% every, adopted by bungalows and terraced homes, each with 9% of filtered searches.
New directions
OnTheMarket has typically seen a progress in new listings in latest months, rising by round 5% every month as much as August. Nevertheless, final month noticed a seasonal dip, with new instruction falling by 15%, a standard development in the course of the summer season as many sellers delay transferring plans whereas they go on vacation or benefit from the climate at residence.
Worth reductions
The proportion of properties with value reductions has remained comparatively steady in latest months. In August, 11% of listings have been diminished, in contrast with 14% in each June and July. This consistency means that the small shifts following the top of the Stamp Responsibility vacation are progressively returning to extra acquainted ranges.
Agent insights
“With the November Funds on the horizon and ongoing financial uncertainty, consumers stay cautious and value delicate. This 12 months we have now achieved file costs, each on a £ per sq. foot foundation and by way of actual values in sure roads, the place all properties have been turn-key.
“Many consumers are extremely knowledgeable, usually utilizing £ per sq. foot as a benchmark earlier than deciding which houses to view. Whereas some are ready to supply, persuading them to enhance their bids may be difficult, as they need reassurance that their buy will nonetheless symbolize good worth after the Funds or in a couple of years’ time.
“With inventory ranges throughout London remaining excessive, bridging the hole between asking value and achievable sale value has been key. Wise pricing not solely reduces time available on the market however also can assist safe stronger outcomes. The truth is, we have now achieved file costs for shoppers who adopted this strategy.
“Conveyancing is at present taking round 6–8 weeks. We strongly advocate that sellers instruct solicitors early and put together documentation upfront to keep away from delays, which solely add to purchaser uncertainty.”
“What we’re seeing throughout the market are centered consumers eager to get offers over the road, with exchanges and new purchaser registration ranges on par with 2024, regardless of an unsure financial and political panorama. The latest resolution by the Financial institution of England to carry rates of interest at 4% has demonstrated a concentrate on stability: a pause that enables the market to regulate progressively and with better confidence over the longer-term.
“While costs have adjusted in some native markets, others stay underpinned by excessive demand, creating a very regionalised image. Way of life-led strikes proceed to drive demand in places like Tunbridge Wells, Chester and Colchester, the place long-term worth outweighs short-term volatility. Completions stay robust in commuter hubs like Sevenoaks and Hale, reflecting the resilience of micro-markets that provide connectivity, group and high quality of life. Whereas these decided to finish earlier than Christmas are already deep into their transactions, money consumers now have a precious alternative, with a wide array of properties out there to them.
“Homemovers are more and more centered on the tangible realities of as we speak’s housing panorama. Our latest analysis revealed that of the 15% of over 55s who plan to downsize would achieve this inside the subsequent 12 months if stamp responsibility have been eliminated or diminished on their onward buy, reflective of pent-up demand and a doable wave of movers topic to the outcomes of the Autumn Funds.
“As we enter the ultimate quarter of the 12 months, the message is obvious; consumers are dedicated however now extra discerning. The precedence for coverage makers have to be to supply additional stability that may breed confidence, gasoline transactions, and assist homemovers on their journey.”
“After a surprisingly busy few months of transactional exercise in any respect ranges of the agricultural property company market, the drip feed of potential adjustments to the taxation of each housing and housing transactions has introduced a layer of warning into {the marketplace}.
“On the increased finish of the market – particularly round properties value in extra of £1.5m – there’s extra warning as the opportunity of introducing capital beneficial properties tax to precept personal residences has been rumoured to be introduced in November’s Funds.
“Nevertheless, the marketplace for properties value lower than £1.5m is standing up very effectively. Doable reforms to stamp responsibility are more likely to be unlock exercise amongst consumers, and our New Properties group are additionally very busy, which bodes effectively for the way forward for home constructing and residential possession.”
Methodology
Between Friday 22 and Saturday 30 August, over 2,500 energetic property seekers who’ve just lately signed up for property alerts or despatched a property enquiry at OnTheMarket participated in our survey. This group represents engaged people at present navigating the UK property market. Breaking respondents down into:
- 1331 (50%) are actively on the lookout for a property to purchase
- 1345 (51%) have a property to promote
- 1571 (59%) are actively on the lookout for a property to lease
The place totals don’t add as much as 100%, this is because of rounding.
Information on key phrases, property sorts, new directions and diminished properties is for June to September and is drawn from OnTheMarket’s information compiled from 1000’s of property agent branches and housebuilders who checklist their properties with OnTheMarket each month.
The info for key phrases and property sorts is said to all searches which have used these filters and doesn’t embrace info regarding searches with out them.
For all enquiries, please contact Amelia Collins (acollins@onthemarket.com)
Earlier editions of the Property Sentiment Index, in addition to different studies may be discovered on our weblog.
