Grange Mortgages have released their latest Residential Property review that reveals how the UK housing market showed renewed momentum in May 2025, with Rightmove reporting the busiest month for agreed property sales since March 2022.
After a rush to beat April’s Stamp Duty changes and a short-lived dip in buyer demand, activity bounced back strongly. Sales agreed rose 6% year-on-year across Great Britain, with Wales leading at +15% and London showing a modest +1% rise.
May 2025 also marked the most active May since 2021, pointing to growing confidence among buyers and sellers who are adjusting to a changing tax and borrowing environment. Rightmove data suggests that buyers are increasingly willing to proceed, despite higher costs—indicating that demand for homes remains resilient.
Meanwhile, in Prime Central London, average house prices fell by 2.2% year-on-year—the sharpest drop since August 2024—according to Knight Frank. The slowdown is being linked to changes in the non-dom tax regime and higher Stamp Duty on additional properties. In contrast, Prime Outer London has remained steadier, with prices rising 1.1%, driven more by domestic buyers.
In wider policy news, Chancellor Rachel Reeves has announced a £39bn investment in affordable and social housing over the next decade—described as the biggest cash injection in 50 years. Analysts at JLL believe this could help deliver up to 500,000 new homes.
Yopa also reports that properties near major UK music festivals come at a premium, with average prices around 41% higher than the national average. The LS22 postcode near Leeds Festival tops the list, with house prices 91% above the city average.
To read the full report and to find out the average price by region click here.
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Correct as of 18 June 2025. Always seek personalised financial advice before making property decisions.