Public anticipate home costs to extend over the subsequent 12 months, however stay longing for fast transactions

Welcome to the June 2025 version of the OnTheMarket Property Sentiment Index, the place we discover how dwelling movers are feeling concerning the property market, supported by knowledge from our personal platform.

With the conclusion of the Stamp Responsibility vacation and ongoing challenges to satisfy the Authorities’s housing targets,the UK property market continues to be a scorching subject in 2025. Our Property Sentiment Index exhibits some scepticism amongst the general public, with home costs anticipated to extend and only a few believing the federal government are more likely to meet their new properties targets. Nonetheless, confidence is excessive with regards to the time taken to maneuver home, with the bulk anticipating to promote a property, purchase a property or lease a property inside six months.

Sentiment in the direction of the property market

Gross sales market expectations

Looking forward to the subsequent 12 months, 51% of respondents anticipate home costs will rise, whereas 21% anticipate them to stay secure and 10% foresee a decline. This may imply a continued worth rise. Information revealed by the federal government on 14 June exhibits thatin the 12 months to April 2025,the common home worth 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 exhibits that 39% of sellers anticipate to safe a purchaser throughout the subsequent three months and an extra 36% consider their property will promote inside three to 6 months. Notably, solely 4% of sellers anticipate thatit will take over a 12 months to obtain a suggestion.

Purchaser outlook

Consumers even have a typically constructive 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 an extra 28% anticipate to take action inside three to 6 months. Solely 7% anticipate that the method will take greater than a 12 months.

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 Properties

Curiosity in new construct properties is powerful with practically half ofrespondents expressing some degree ofinterest, with 21% saying they’re very seemingly and 25%
saying they’re considerably more likely to think about a brand new dwelling. In distinction, 37% say they’re both considerably or not possible to think about this feature.

Rental market sentiment

Rental costs expectations replicate the dearth of provide and growing deman with 66% of respondents anticipating rental prices will enhance within the subsequent 12 months, whereas 16% anticipate them to stay secure and solely 4% foresee a lower.

Renter outlook

Regardless of this, property seekers seeking to lease are assured of their skill 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 growth

Housing targets

Because the 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 proscribed with solely 26% believing the purpose 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 combined experiences for property seekers relating to the variety of accessible listings showing of their search outcomes. Whereas 39% reported no change within the variety of accessible listings,these numbers have 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 essentially 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 figuring out something about it. Solely 8% of respondents declare to know loads concerning the Invoice and the remaining 22% say they know a good quantity.

Whereas confidence in housing coverage outcomes is combined, property seekers stay broadly optimistic about their private prospects out there, particularly with regards to promoting, shopping for, or securing rental lodging inside an affordable timeframe.

We’ll proceed to watch 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, out of doors areas have confirmed particularly widespread with dwelling consumers, with searches for”backyard” and “massive backyard” showing regularly. Parking is one other must-have, with phrases like “off-street parking,””driveway,” and “storage” usually
used.

For renters, whereas some priorities differ, gardens and parking nonetheless rank extremely. Renters alson deal with sensible considerations like pet permissions and whether or not furnishings or payments are included.

Property sorts

One ofthe most used filters is property kind, serving to customers slim outcomes to what fits them greatest—whether or not that’s a indifferent home,terraced dwelling, or perhaps a cellular dwelling.

Value reductions: regular traits

Regardless of hypothesis round coverage adjustments resembling the top of the Stamp Responsibility vacation, worth reductions have remained secure. Within the month main as much as 1 June 2025, 13% of properties on the location had their costs lowered – much like earlier months.

New directions: regular progress on website

Since January,the platform has seen a constant month-on-month enhance in new directions, with a notable 15.8% rise between February and March. Rental listings have additionally adopted this upward pattern, rising considerably over the identical interval with a 12.7% enhance in new rental properties added.

Insights from OnTheMarket brokers

David Corrie, Head of Residential Company, Galbraith

“We now have witnessed purchaser confidence bettering out there as a consequence of falling rates of interest and due to this fact mortgage charges coming down, permitting folks 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 gives an outstanding work-life stability, stunning 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 nicely at a aggressive time limit. Demand does stay robust for properties with a large portion of land, be it for further privateness, rising your individual produce, equestrian lovers with house for stables, or many who run a rural enterprise from dwelling and require land to take action.

Spring and early summer season is a naturally lively time of the 12 months, spurred on by the beneficial climate we skilled all through Could. 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 have been fast to renew their exercise in Could which was additional pushed by the Financial institution of England’s determination to chop rates of interest to 4.25% and plenty 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 gentle quantity of agreed gross sales all through Could and June.”

Adam Jennings, Head of Lettings, Chestertons

Commenting on lettings market in London:

“General,the UK’s rental market stays extremely aggressive as a rising inhabitants leads to 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,the vast majority of cities and notably London, nonetheless see a single property appeal to a number of tenant enquiries. Regardless of occasional marketfluctuations, demand will seemingly all the time outweigh provide which can lead to a difficult property seek for tenants. In reality, primarily based on 2025 market traits this summer season often is the best we now 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 Value traits have seen modest progress, with the common property worth round £356,000 between Could 2024 and April 2025. The market has additionally skilled a rise in properties on the market, with 21% extra properties accessible in comparison with the earlier 12 months, giving consumers an abundance of selection.
Because of this, when coming into the market,the asking worth must be set at a practical degree.

Current 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 big enhance in first time consumers coming into the market.

Life-style adjustments, resembling distant working alternatives, proceed to draw folks to the area.”

Methodology

Between Friday 30 Could 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 at the moment navigating the UK property market. Breaking respondents down into:

• 2,399 are actively on the lookout for a property to purchase
• 1,660 have a property to promote
• 2,230 are actively on the lookout for a property to lease

Information on key phrases, property sorts, new directions and lowered properties is drawn from OnTheMarket’s knowledge compiled from 1000’s of property agent branches and housebuilders who record their properties with OnTheMarket each month.

For all enquiries please contact Amelia Collins (acollins@onthemarket.com)