Welcome to the June 2025 version of the OnTheMarket Property Sentiment Index, the place we discover how house movers are feeling in regards to the property market, supported by knowledge from our personal platform.
With the conclusion of the Stamp Responsibility vacation and ongoing challenges to fulfill the Authorities’s housing targets,the UK property market continues to be a scorching subject in 2025. Our Property Sentiment Index reveals some scepticism amongst the general public, with home costs anticipated to extend and only a few believing the federal government are prone to meet their new properties targets. Nonetheless, confidence is excessive in terms of the time taken to maneuver home, with the bulk anticipating to promote a property, purchase a property or hire a property inside six months.
Sentiment in the direction of the property market
Gross sales market expectations
Waiting for the following 12 months, 51% of respondents anticipate home costs will rise, whereas 21% anticipate them to stay steady and 10% foresee a decline. This may imply a continued value rise. Knowledge revealed by the federal government on 14 June reveals thatin the 12 months to April 2025,the common home value elevated by 3.5% to £265,000.
Vendor expectations
Amongst these with a property to promote, confidence is comparatively excessive with the bulk anticipating a well timed sale. Our knowledge reveals that 39% of sellers anticipate to safe a purchaser throughout the subsequent three months and a further 36% consider their property will promote inside three to 6 months. Notably, solely 5% of sellers anticipate that it’s going to take over a yr to obtain a suggestion.
Purchaser outlook
Patrons even have a typically optimistic outlook on the homebuying course of. Amongst respondents seeking to buy a property, 27% look forward to finding and safe a property inside three months, whereas a further 38% anticipate to take action inside three to 6 months. Solely 8% anticipate that the method will take greater than a yr.
Monetary confidence
Encouragingly, 70% of property seekers really feel both very (44%) or pretty (26%) assured about elevating the mandatory funds for a purchase order, with solely 17% expressing a insecurity.
New Houses
Curiosity in new construct properties is powerful with practically half ofrespondents expressing some stage ofinterest, with 21% saying they’re very possible and 25%
saying they’re considerably prone to think about a brand new house. In distinction, 37% say they’re both considerably or most unlikely to contemplate this feature.
Rental market sentiment
Rental costs expectations replicate the shortage of provide and rising deman with 66% of respondents anticipating rental prices will improve within the subsequent 12 months, whereas 16% anticipate them to stay steady and solely 4% foresee a lower.
Renter outlook
Regardless of this, property seekers seeking to hire are assured of their capability to safe a property promptly with over half (51%) believing they’ll discover and safe a property inside three months. One other 27% anticipate the method to take between three and 6 months and simply 9% anticipate the search to take longer than six months.
Present occasions and coverage improvement
Housing targets
For the reason that Labour Occasion’s election in July 2024, a key dedication has been to ship 1.5 million new properties by 2029. Nonetheless, confidence on this pledge is restricted with solely 26% believing the objective is achievable and 49% think about it unlikely to be met.
Stamp Responsibility Land Tax vacation ends
The conclusion of the Stamp Responsibility Land Tax vacation has resulted in blended experiences for property seekers relating to the variety of obtainable listings showing of their search outcomes. Whereas 39% reported no change within the variety of obtainable listings,these numbers had been bigger on a regional scale with 51% of respondents in Scotland and 46% in Wales reporting no change. Whereas 20% noticed a rise in listings with 23% of respondents within the East Midlands (23%) and London (26%). In distinction, 25% observed a lower within the variety of properties availability with this being noticed probably the most by respondents within the East of England (30%) and the South West (28%) .
Renters’ Rights Invoice
Presently progressing via parliament,the proposed Renter’s Rights Invoice goals to reinforce protections for personal renters. Nonetheless, public consciousness stays restricted with 37% of respondents having by no means heard of it and 33% being conscious oftheBill however not realizing something about it. Solely 8% of respondents declare to know lots in regards to the Invoice and the remaining 22% say they know a good quantity.
Whereas confidence in housing coverage outcomes is blended, property seekers stay broadly optimistic about their private prospects available in the market, particularly in terms of promoting, shopping for, or securing rental lodging inside an inexpensive timeframe.
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 knowledge and feedback from brokers across the nation on their experiences overthe lastfew months.
Insights from the OnTheMarket web site
Key phrases
The key phrases function helps consumers and renters discover properties that match their actual wants.
Over the previous three months, outside areas have confirmed particularly fashionable with house consumers, with searches for”backyard” and “giant backyard” showing incessantly. Parking is one other must-have, with phrases like “off-street parking,””driveway,” and “storage” typically
used.
For renters, whereas some priorities differ, gardens and parking nonetheless rank extremely. Renters alson concentrate on sensible issues like pet permissions and whether or not furnishings or payments are included.
Property varieties
One ofthe most used filters is property sort, serving to customers slender outcomes to what fits them finest—whether or not that’s a indifferent home,terraced house, or perhaps a cell house.
Worth reductions: regular developments
Regardless of hypothesis round coverage adjustments equivalent to the top of the Stamp Responsibility vacation, value reductions have remained steady. Within the month main as much as 1 June 2025, 13% of properties on the positioning had their costs lowered – just like earlier months.
New directions: regular progress on web site
Since January,the platform has seen a constant month-on-month improve in new directions, with a notable 15.8% rise between February and March. Rental listings have additionally adopted this upward development, rising considerably over the identical interval with a 12.7% improve in new rental properties added.
Insights from OnTheMarket brokers
David Corrie, Head of Residential Company, Galbraith
“We’ve witnessed purchaser confidence enhancing available in the market attributable to falling rates of interest and due to this fact mortgage charges coming down, permitting individuals to re-engage and make a transfer. Notably, first time consumers coming via have helped stimulate the market with lending in place and never being reliant on a sale to maneuver ahead.
Rural Scotland provides an outstanding work-life stability, lovely surroundings and good worth for cash in contrast with many different components of the UK. The small holdings market has been notably lively with many promoting properly at a aggressive deadline. Demand does stay sturdy for properties with a large portion of land, be it for additional privateness, rising your individual produce, equestrian lovers with area for stables, or many who run a rural enterprise from house and require land to take action.
Spring and early summer season is a naturally lively time of the yr, spurred on by the beneficial climate we skilled all through Might. This has inspired sellers to get their property prepared for the summer season market and as such we’re witnessing indicators of a promising market forward.”
Matt Thompson, Head of Residential Gross sales, Chestertons
Commenting on gross sales in London:
“In April, some home hunters paused their search amid the Easter holidays however had been fast to renew their exercise in Might which was additional pushed by the Financial institution of England’s determination to chop rates of interest to 4.25% and a lot of sub 4% mortgage merchandise. As sellers additionally remained motivated,the market skilled an uplift within the variety of properties being put up on the market which contributed to a gradual quantity of agreed gross sales all through Might and June.”
Adam Jennings, Head of Lettings, Chestertons
Commenting on lettings market in London:
“Total,the UK’s rental market stays extremely aggressive as a rising inhabitants ends in a steady requirement for appropriate housing. While some areas ofthe UK could have witnessed an adjustment in provide or demand ranges in addition to rental inflation,nearly all of cities and significantly London, nonetheless see a single property entice a number of tenant enquiries. Regardless of occasional marketfluctuations, demand will possible at all times outweigh provide which can lead to a difficult property seek for tenants. Actually, primarily based on 2025 market developments this summer season stands out as the best now we have seen for a few years. ”
Michael Peacock, Head of Chase Buchanan
“Within the first half of 2025,the South West of England’s property market has been characterised by a mixture of challenges and alternatives. Home Worth developments have seen modest progress, with the common property value round £356,000 between Might 2024 and April 2025. The market has additionally skilled a rise in properties on the market, with 21% extra properties obtainable in comparison with the earlier yr, giving consumers an abundance of selection.
In consequence, when getting into the market,the asking value must be set at a sensible stage.Latest reductions in rates of interest, which have eased affordability pressures by making sub-4% mortgage offers extra accessible have boosted exercise and with rents remaining excessive,there was a major improve in first time consumers getting into the market.
Life-style adjustments, equivalent to distant working alternatives, proceed to draw individuals to the area.”
Methodology
Between Friday 30 Might and Saturday 7 June 2025, over 3,000 lively property seekers who’ve not too long ago signed up for property alerts or despatched a property enquiry at OnTheMarket participated in our survey. This group represents engaged people presently navigating the UK property market. Breaking respondents down into:
- 2,399 are actively searching for a property to purchase
- 1,660 have a property to promote
- 2,230 are actively searching for a property to hire
Knowledge on key phrases, property varieties, new directions and lowered properties is drawn from OnTheMarket’s knowledge compiled from hundreds of property agent branches and housebuilders who checklist their properties with OnTheMarket each month.
For all enquiries please contact Amelia Collins (acollins@onthemarket.com)
