UK Housing Market Round-Up: 2025

Property search site Zoopla has estimated that the UK housing market will end 2025 with approximately 1.15 million completed sales – 4.5% more than the previous year.

Pricing

Unsurprisingly, there was a huge disparity between house prices in London and cheaper local authorities, with Kensington and Chelsea averaging a house price of £1,071,600, which is around 10 times higher than Inverclyde, Scotland, with an average price of £109,400.

After London, Elmbridge in Surrey came in second priciest with an average price of £705,800, followed by Beaconsfield in Buckinghamshire, where houses averaged £671,400.

Below are the least and most expensive areas to buy in 2025:

Peaks throughout the year

Zoopla shared that January 2025 was the most popular month for property searching – a follow-up on the Boxing Day bounce, where new-year home searches often begin.

Most properties were listed online during the month of May.

March was shown to have completed 178,000 UK property transactions (over £40k) according to HM Revenue & Customs.

Search words

Interestingly, “garage” took over “freehold” in the most commonly used search term, which had been the top search for the past two years. Other common searches according to Zoopla were “annexe”, “double garage”, “acres”, and pool”.

What is in store for 2026

Although there are still challenges within the economy, there appears to be a more positive outlook for buyers. Following the recent rate cut from the Bank of England, inflation is forecast to fall over the next few months, which will hopefully give those who were previously uncertain a clearer picture.