July Property Market Analysis

It certainly was a flaming June but did the property market also run hot? We have digested the information and figures published in the month. Here’s the current state of play as we head into the second half of 2025. 

A buyers’ market persisted, with more choice in a price sensitive market. This was reflected in the first dip in the UK’s average asking price for some months, noted in Rightmove’s latest House Price Index. New sellers advertised their homes for 0.3% less in June.

Price well to sell

This is not a negative, however. Sellers who price accurately enjoy greater success. Rightmove found well priced homes that attracted an enquiry on the first day were 22% more likely to find a purchaser, compared to properties that take more than two weeks to receive an enquiry.

2025 a more successful sales market

The portal also noted buyer demand in June was 3% above where it was a year ago. The number of homes for sale also improved – with 11% more new instructions. Encouragingly, May saw the highest number of sales agreed in any month since March 2022.

How has this affected sold values? In June, the Nationwide reported a 0.5% increase in the average sold price, taking it to £273,427. The Halifax’s analysis found the average house price actually decreased 0.4%, with a new average of £296,648.

June was a busy month for lettings news. Zoopla’s latest Rental Market Report called an end to runaway rental value rises. Although new tenancies are still more expensive, the rate of growth has slowed. A new monthly tenancy costs an average of £1,287 – a 2.8% annual increase.

HomeLet’s most recent figures differed. While it found a similar average monthly rent - £1,307 – it said rents had increased annually by 0.8%. Looking at monthly values, rents increased the most in Scotland (+£17), Wales (+£19), and Northern Ireland (+£22).

Two Government Bills both made progress in June. The Renters’ Rights Bill – which predominantly affects England but with the discrimination reform applying in Scotland and Wales – moved forward. It’s now at the reporting stage in the House of Lords, although there is doubt over whether the Bill will gain Royal Assent before Parliament’s summer recess. 

Rent controls in Scotland on the cards

In Scotland, The Housing (Scotland) Bill completed Stage 2 of scrutiny. Both landlords and tenants should know the plan to introduce rent controls remains. If passed, landlords whose properties fall in Rent Control Areas would only be able to increase rents in line with inflation +1% and up to a maximum of 6%.

The Housing (Scotland) Bill will also make it easier for tenants to personalise their home, obtain permission for a pet and end a joint tenancy where there is disagreement between the tenants about ending the lease. Like with The Renters’ Rights Bill, summer is expected to delay the Bill’s progress until the end of the year. 

Green rentals a hot topic 

June also saw the publication of Handelsbanken’s Property Investor Report 2025. The headline finding was 92% of UK property investors thought tenants would be willing to pay more to rent greener homes. Of those landlords questioned, 77% said tenants are actively requesting sustainable property upgrades, such as heat pumps, solar panels and EV charging points. 

The report also found 54% of property investors plan to expand their portfolios over the next 12 months, with 80% expecting their portfolio to increase in value. Finally, 36% say proposed EPC reforms leave them more positive about the market.

If you would like to know more about your local property market, please get in touch.