How Has the UK Property Market Performed in May 2025?

The UK property market is heating up again. May 2025 has seen the busiest month for property sales in four years, with activity levels not seen since the post-pandemic boom of 2021. And surprisingly, this surge has come despite the end of stamp duty reliefs.

So, if you're a property investor, you need to read this article carefully because today, we are going to explain what this property boom is, what is driving it and what moves you have to take to capitalise on this tide.

What’s Driving the UK Property Market Boom?

Three big factors are helping to bring buyers back to the market:

• More Homes for Sale – There are 13% more properties on the market compared to this time last year, providing buyers with more choices and creating momentum.
• Falling Mortgage Rates – Since April, many lenders have started reducing mortgage rates, making borrowing slightly more affordable.
• New Lending Rules – Some banks have updated their affordability assessments, allowing buyers to borrow up to 20% more than they could earlier in the year.

The result? Zoopla’s House Price Index for May 2025 reports that all of this is fuelling the fastest rate of agreed sales since 2021.

Are Prices Rising Too? Yes, But Only Slightly

House prices across the UK are up by 1.6% year-on-year, but it’s a mixed picture because the average home is selling for around £16,000 below the asking price.

There’s also a clear north-south divide. In southern England, the supply of homes has grown sharply. Here’s a brief look at the regional data:

• South West - 21% more homes for sale compared to this time last year
• London - 17% more homes for sale compared to this time last year
• South East - 15% more homes for sale compared to this time last year

This greater supply of homes, along with affordability constraints, has helped keep house price growth low across the southern regions.

In contrast, the North West and Scotland are seeing stronger price growth due to limited supply and better affordability. Average prices are up 3% in the North West and 2.9% in Scotland. Northern hotspots like Blackburn are leading the way. Land Registry figures show a 14.4% year-on-year price increase there, with demand high and homes selling quickly.

Conclusion: What All This Means for Property Investors

Zoopla expects home sales to continue rising in the second half of 2025, with overall prices likely to be 2% higher by year-end.

That said, there are regional disparities and buyers and sellers will need to adapt their strategies accordingly. In the South, expect more competition and slower price growth. In the North, strong demand and limited supply could keep upward pressure on prices.

For property investors, this is a market to watch closely. Opportunities exist, but success will depend on understanding local dynamics and staying realistic with valuations.