The UK housing market is experiencing a notable resurgence, with home sales reaching their highest levels since the post-pandemic boom of 2021. According to Zoopla’s latest House Price Index, the number of sales agreed in May is running at a four-year high, buoyed by improved mortgage affordability and a surge in housing supply.
This revival follows the end of stamp duty reliefs and a seasonal slowdown over Easter. With 13 per cent more homes on the market compared to last year, prospective buyers now have greater choice, which is driving activity across the country.
A key factor behind the sales spike is a shift in how lenders assess affordability. Borrowers can now access up to 20 per cent more finance than earlier this year, thanks to relaxed lending criteria and falling mortgage rates. This has increased consumer confidence and spurred demand, even in the face of broader economic pressures.
Zoopla reports that average UK house prices have climbed 1.6 per cent year-on-year, now standing at £268,250—up £4,330 over the past 12 months. Despite this uptick, sellers are being urged to remain pragmatic, particularly as increased stock levels may temper price growth. Currently, the average home is selling for around three per cent—or £16,000—below asking price, a discount rate that has remained stable in recent months.
North West Leads the Pack in Regional Growth
While national figures reflect moderate growth, regional disparities are becoming increasingly pronounced. The North West has emerged as the UK’s fastest-growing housing market, with cities like Blackburn (5.8 per cent), Wigan (4.4 per cent), and Birkenhead (4.1 per cent) leading the charge. In Belfast, prices have surged by 6.1 per cent.
Strong employment growth and rising rents in major urban hubs such as Manchester and Liverpool—where prices rose by 2.5 per cent and three per cent respectively—are fuelling demand in nearby, more affordable locations.
By contrast, southern England is witnessing slower price growth, with increases of less than one per cent across the South East (0.5 per cent), South West (0.9 per cent), and London. The abundance of homes for sale in these regions—21 per cent more in the South West and 17 per cent more in London—has cooled competition and helped keep prices in check.
Scotland and Northern Ireland Outpace Southern Regions
Scotland and Northern Ireland are also seeing above-average house price increases, at 2.9 per cent and 3 per cent respectively. This trend is supported by relatively tight housing supply and better affordability compared to the South.
Aberdeen is one of the few areas to buck the upward trend, with house prices falling by 1.4 per cent amid reduced investment in the local oil and gas sector.
Outlook: Cautious Optimism
Zoopla’s Executive Director Richard Donnell offered a measured forecast for the months ahead, highlighting the role of increased listings and improved lending conditions in boosting the market.
“More homes for sale means more buyers looking to move,” Donnell said. “This, coupled with more attractive mortgage deals and changes to how lenders assess affordability, is supporting an increase in the number of sales being agreed.”
He noted that while affordability continues to constrain growth in southern England, the outlook remains positive for the rest of the UK.
“We expect sales to keep rising over the second half of the year, with UK home values on track to be two per cent higher by the end of 2025.”
With renewed energy in the market and regional hotspots driving national figures, the housing sector appears to be entering a period of steady—if uneven—recovery.