Agreed sales in May have reached the highest level in 4 years. With more homes for sale and modest price rises, buyers can benefit from relaxed affordability testing while sellers need to be supported with pricing advice.
- The number of sales agreed in the UK is at the highest level for 4 years in May 2025
- Supply (+13%) and sales (+6%) are both up on last year as the market rebounds after initial reaction to the end of stamp duty relief
- UK house price inflation remains stable at 1.6%
- Re-engage with buyers to help them understand the potential boost to their affordability from relaxations to mortgage testing in recent weeks
- Sellers in the North of England and Scotland are recording the highest growth in sale volumes
- In the South of England, stock levels are high and sale volumes lower so strategy and pricing are key
- The average UK seller is achieving 97% of asking price: a good figure to share to keep expectations realistic
- The market is on track for 5% more sales and 2% price inflation over 2025
Sales are up, as is the amount of homes on the market, a recurring theme in recent years. There’s a regional component, where there’s less for sale in the north, which is contributing to prices growing much faster there.
Helping buyers understand the boost from relaxed affordability testing
Affordability testing for mortgages has been relaxed in recent weeks, meaning buyers could now afford to borrow 20% more than a few weeks ago, at the same mortgage rate.
It’s worth re-engaging with applicants from the early part of the year to see if the boost to affordability could enable or encourage a move.
Mortgage rates aren’t going to tumble, but we always recommend buyers speak to a mortgage broker to understand what they can afford. For those in the early stages of a move, our mortgage affordability calculator included in our online valuation might be helpful.
The stock of homes for sale continues to build, giving plenty of choice: there are now 35 sellers per estate agent. Helping these sellers find a home to buy could be pivotal in building a chain and securing the sale and commission.
Supporting sellers considering an offer
There are a lot more sellers in the market but this varies across the UK with a clear divide between north and south.
The market in Northern England and Scotland is rolling along healthily, with 5% more homes for sale and the highest growth in sales volumes. With your guidance on price and strategy, those selling should attract plenty of interest and achieve a favourable result.
In the South of England, stock of homes for sales is up 15-20% and the growth in sales is smaller. It’s trickier to achieve asking price and sellers may need to consider offers given the lower level of competition.
The average UK seller is achieving 97% of the asking price – a good figure to share to keep expectations realistic.
Answering that age-old question: is now the right time to sell?
Our view is that it’s not about it being a ‘good’ or ‘bad’ time to sell, but rather your clients’ motivations for moving.
There are buyers in the market and sales are being agreed for well-priced homes. If it’s the right time for your client to move, a strategy tailored to your local market should mean a successful sale.
Mortgage rates may drift lower, but those relaxed lending rules I’ve mentioned are already in place. Buyers using mortgages can now borrow more than earlier in the year, supporting demand as we move into the second half of 2025.
