Zoopla June 2025 House Price Index analysis

July 9, 2025

Finding the truth behind the UK housing market has been a challenging task in 2025. The end of the Stamp Duty holiday, interest rate cuts, house price growth returning, and a huge construction drive from the government have combined to make a definitive verdict almost impossible.

However, the true state of the market is emerging from the data as we enter the second half of 2025, and the news is good for homeowners and UK buy-to-let property investors. We have examined the June 2025 Zoopla House Price Index to find out more.

‍

Fundamentals of the market remain strong and favour more growth in future

The housing market is highly active at the moment. There were some concerns that new buyers would disappear after the Stamp Duty holiday ended in April, but that has not turned out to be the case.

Zoopla data shows that sales are being agreed at the fastest rate for four years. What’s more, homes are coming onto the market rapidly, with a 14% increase in availability over the last 12 months. That suggests a rising confidence in the market as a place to buy and sell.

That will push up competition for homes and accelerate house price growth in the months and years to come. There are not enough homes to go around, and we expect the overall scarcity to continue driving the growth of UK investment property for sale.

The latest analysis from Nationwide confirms this and backs up the Zoopla research. Robert Gardner, Nationwide's Chief Economist, said: “We still expect activity to pick up as the summer progresses, despite ongoing economic uncertainties in the global economy, since underlying conditions for potential homebuyers in the UK remain supportive.”

‍

House price growth is concentrated in more affordable markets

Overall house price growth in the UK has slowed to 1.4% according to Zoopla data, with the average property value now £268,400. However, that’s not the whole story.

House prices are rising faster in places where property is cheaper. That suggests people are looking for value and buying up property in cheaper markets. At the same time, they may be leaving more expensive ones – house prices have fallen slightly in more expensive markets where properties are £500,000 or more.

That implies that bargains are available for homebuyers and investors in the right markets, such as Manchester, Liverpool and smaller towns like Eastbourne.

However, homebuyers and investors seem to know this and competition for homes in more reasonably priced markets is increasing. That makes buying as soon as possible a good strategy for anyone looking to maximise their return on investment.

‍

A welcome return to normality

Perhaps the most important thing to come out of the latest Zoopla House Price Index is what the data says about the housing market as a whole – and where it can be expected to head in the future.

The time to sell has largely stayed the same at 45 days, but asking prices are starting to be more realistic as expectations normalise. The Covid-19 pandemic saw asking prices and sale prices skyrocket as people desperately overpaid to get their moves finalised.

The latest Zoopla data shows that the market has corrected and we should now see realistic pricing, reasonable sale times and a much more predictable market. In other words, reliable growth over the medium-term and long-term, exactly what the strongest and most profitable property portfolios are built on.

‍

What does the future hold for UK property?

2025 has been a turning point for a market that was unsettled by global and economic challenges. Now, we can look ahead and see that the future is much more reliable and predictable.

People are demonstrating a strong desire to move house, causing house prices to grow steadily. That’s especially true in the UK’s best buy-to-let areas in regional locations where there is not enough housing to go around, but you can still find affordable entry prices.

Want to learn more about the UK market and find out how you can earn the highest possible profits with buy-to-let? Contact our team of experts today to discover the available opportunities!

Zoopla June 2025 House Price Index analysis

You may also be interested in...

Premium bonds vs property: What’s the best investment?

What does the Bank of England’s interest rate cut mean for property?

As building rates increase, is there still a supply and demand issue in the UK?