Welcome to the June 2025 version of the OnTheMarket Property Sentiment Index, the place we discover how dwelling movers are feeling in regards to the property market, supported by information 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 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. 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 hire a property inside six months.
Sentiment in 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% count on them to stay steady and 10% foresee a decline. This may imply a continued worth rise. Knowledge printed by the federal government on 14 June reveals thatin the 12 months to April 2025,the typical 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 information reveals that 39% of sellers count on to safe a purchaser inside the subsequent three months and a further 36% consider their property will promote inside three to 6 months. Notably, solely 4% of sellers anticipate thatit will take over a yr to obtain a suggestion.
Purchaser outlook
Consumers even have a usually optimistic outlook on the homebuying course of. Amongst respondents trying to buy a property, 27% look forward to finding and safe a property inside three months, whereas a further 28% count on to take action inside three to 6 months. Solely 7% 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 robust with almost half ofrespondents expressing some degree ofinterest, with 21% saying they’re very seemingly and 25%
saying they’re considerably prone to take into account a brand new dwelling. 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 growing deman with 66% of respondents anticipating rental prices will improve 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 trying 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% 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 improvement
Housing targets
Because the Labour Social gathering’s election in July 2024, a key dedication has been to ship 1.5 million new properties by 2029. Nevertheless, confidence on this pledge is proscribed with solely 26% believing the objective is achievable and 49% take into account 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 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
At present progressing via parliament,the proposed Renter’s Rights Invoice goals to boost 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 realizing something about it. Solely 8% of respondents declare to know quite a bit in regards to 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 available in the market, particularly in terms of promoting, shopping for, or securing rental lodging inside an affordable 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. Preserve studying for insights from OnTheMarket’s information 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 dwelling consumers, with searches for”backyard” and “giant backyard” showing continuously. 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 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 finest—whether or not that’s a indifferent home,terraced dwelling, or perhaps a cellular dwelling.
Worth reductions: regular developments
Regardless of hypothesis round coverage modifications equivalent to the top of the Stamp Responsibility 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 decreased – much like earlier months.
New directions: regular development on website
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 have now witnessed purchaser confidence enhancing available in the market as a result of falling rates of interest and subsequently 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 steadiness, stunning 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 nicely at a aggressive cut-off date. Demand does stay robust for properties with a large portion of land, be it for additional privateness, rising your personal produce, equestrian lovers with area for stables, or many who run a rural enterprise from dwelling 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 Might. 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 Might which was additional pushed by the Financial institution of England’s resolution to chop rates of interest to 4.25% and quite 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 gentle 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 leads to a steady requirement for appropriate housing. While some areas ofthe UK might have witnessed an adjustment in provide or demand ranges in addition to rental inflation,the vast majority of cities and significantly 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. Actually, based mostly 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 Worth developments have seen modest development, with the typical property worth 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 accessible in comparison with the earlier yr, giving consumers an abundance of selection.
Because of this, 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 major improve in first time consumers getting into the market.
Way of life modifications, equivalent to distant working alternatives, proceed to draw folks to the area.”
Methodology
Between Friday 30 Might 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 the moment navigating the UK property market. Breaking respondents down into:
- 2,399 are actively in search of a property to purchase
- 1,660 have a property to promote
- 2,230 are actively in search of a property to hire
Knowledge on key phrases, property sorts, new directions and decreased properties is drawn from OnTheMarket’s information compiled from 1000’s of property agent branches and housebuilders who checklist their properties with OnTheMarket each month.
For all enquiries please contact Amelia Collins (acollins@onthemarket.com)
