Welcome to the June 2025 version of the OnTheMarket Property Sentiment Index, the place we discover how house movers are feeling concerning the property market, supported by knowledge from our personal platform.
With the conclusion of the Stamp Obligation vacation and ongoing challenges to fulfill the Authorities’s housing targets,the UK property market continues to be a sizzling 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 more likely to meet their new houses targets. Nevertheless, confidence is excessive in terms of 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 direction of the property market
Gross sales market expectations
Waiting for the subsequent 12 months, 51% of respondents anticipate home costs will rise, whereas 21% count on them to stay steady and 10% foresee a decline. This might imply a continued worth rise. Knowledge printed by the federal government on 14 June reveals 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 reveals that 39% of sellers count on to safe a purchaser throughout the subsequent three months and an extra 36% imagine their property will promote inside three to 6 months. Notably, solely 5% of sellers anticipate that it’ll take over a yr to obtain a proposal.
Purchaser outlook
Consumers even have a usually 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 an extra 38% count on 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 houses is powerful with practically half ofrespondents expressing some degree ofinterest, with 21% saying they’re very doubtless and 25%
saying they’re considerably more likely to take into account 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 dearth of provide and rising deman with 66% of respondents anticipating rental prices will enhance within the subsequent 12 months, whereas 16% count on them to stay steady and solely 4% foresee a lower.
Renter outlook
Regardless of this, property seekers seeking to lease are assured of their means to safe a property promptly with over half (51%) believing they’ll discover and safe a property inside three months. One other 27% count on 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 houses by 2029. Nevertheless, confidence on this pledge is restricted with solely 26% believing the purpose is achievable and 49% take into account it unlikely to be met.
Stamp Obligation Land Tax vacation ends
The conclusion of the Stamp Obligation Land Tax vacation has resulted in combined 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% seen 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 by parliament,the proposed Renter’s Rights Invoice goals to reinforce protections for personal renters. Nevertheless, public consciousness stays restricted with 37% of respondents having by no means heard of it and 33% being conscious oftheBill however not understanding something about it. Solely 8% of respondents declare to know lots 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 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. Maintain 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 patrons and renters discover houses that match their actual wants.
Over the previous three months, outside areas have confirmed particularly fashionable with house patrons, with searches for”backyard” and “giant 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 give attention to sensible issues like pet permissions and whether or not furnishings or payments are included.
Property sorts
One ofthe most used filters is property sort, serving to customers slim outcomes to what fits them greatest—whether or not that’s a indifferent home,terraced house, or perhaps a cellular house.
Value reductions: regular developments
Regardless of hypothesis round coverage modifications reminiscent of the top of the Stamp Obligation vacation, worth reductions have remained steady. Within the month main as much as 1 June 2025, 13% of properties on the location had their costs diminished – much like earlier months.
New directions: regular progress on web site
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 development, 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’ve witnessed purchaser confidence bettering out there resulting from falling rates of interest and subsequently mortgage charges coming down, permitting folks to re-engage and make a transfer. Notably, first time patrons coming by have helped stimulate the market with lending in place and never being reliant on a sale to maneuver ahead.
Rural Scotland presents an outstanding work-life stability, lovely surroundings and good worth for cash in contrast with many different elements of the UK. The small holdings market has been notably energetic with many promoting properly at a aggressive time limit. Demand does stay robust for properties with a large portion of land, be it for further privateness, rising your personal produce, equestrian lovers with house for stables, or many who run a rural enterprise from house and require land to take action.
Spring and early summer time is a naturally energetic time of the yr, spurred on by the beneficial climate we skilled all through Could. This has inspired sellers to get their property prepared for the summer time 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 Could which was additional pushed by the Financial institution of England’s resolution to chop rates of interest to 4.25% and various 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 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 notably London, nonetheless see a single property entice a number of tenant enquiries. Regardless of occasional marketfluctuations, demand will doubtless at all times outweigh provide which may end up in a difficult property seek for tenants. In actual fact, primarily based on 2025 market developments this summer time will be the best we have now 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 developments 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 houses on the market, with 21% extra properties obtainable in comparison with the earlier yr, giving patrons an abundance of alternative.
Consequently, when getting 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 patrons getting into the market.
Way of life modifications, reminiscent of distant working alternatives, proceed to draw folks to the area.”
Methodology
Between Friday 30 Could and Saturday 7 June 2025, over 3,000 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:
- 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 lease
Knowledge on key phrases, property sorts, new directions and diminished properties is drawn from OnTheMarket’s knowledge compiled from hundreds of property agent branches and housebuilders who listing their properties with OnTheMarket each month.
For all enquiries please contact Amelia Collins (acollins@onthemarket.com)
