Prices Reach New Highs, But Buyers Have More Choice

May 2025 Market Update

UK property prices have continued to edge upwards, with the average asking price now £379,517, a new record, albeit with a modest increase of 0.6% (+£2,335) from April. While it’s another milestone for the market, this is the smallest rise for May since 2016, suggesting that price growth is levelling off as buyers take a more measured approach and more homes become available.

More Homes on the Market – A Welcome Shift for Buyers

Stock levels remain high, offering buyers greater flexibility and choice than we’ve seen in years. This follows a busy March, when many rushed to complete transactions before the stamp duty changes. April saw buyer demand ease slightly, down 4% on the year, but the number of new sellers coming to market rose by 14%, indicating strong confidence on the part of vendors.

Central London – Long-Term Value Still Evident

In Prime Central London, property values remain well below historic highs, 21.2% below the 2014 peak, or 42.3% lower when adjusted for inflation. For buyers with a longer-term view, current prices present a real opportunity to purchase in some of the capital’s most sought-after areas at a meaningful discount to peak levels.

Momentum Remains Strong Overall

While April brought a slight pause, the broader picture for 2025 remains positive. Buyer demand is still 3% ahead of last year, and sales agreed are 5% higher than this time in 2024. The market is proving resilient, particularly for well-presented homes priced sensibly, with sustained interest across prime and family markets alike.

If you’re considering your next move, whether upsizing, downsizing, or investing, it’s a good time to talk. With strong activity and more property to choose from, market conditions remain encouraging for both buyers and sellers.