UK Housing Market Update – June 2025
Happy June, everyone! Whisper it quietly, but there is some encouraging news to share from the housing and mortgages market.
Lower interest rates and continuing lender competition = growing buyer confidence and a record number of listings.
There’s no doubt about the headline as, *spoiler alert*, May saw the busiest month for UK house sales since 2021!
What else is going on in the market? I’ve collated the most noteworthy developments below...
Sales Soar After April Slump
House sales soared in May, hitting their highest level in four years.
(Source: Zoopla House Price Index – May 2025)
Year-on-year, sales agreed were up by 6%, and listings rose by 13% compared to the same month in 2023 — clear signs of growing confidence among both buyers and sellers.
This strong bounce followed a slower April, which many predicted after the rush caused by March’s stamp duty deadline.
Mortgage Rate Update – June 2025
Several lenders have made changes to rates and product ranges to reflect shifting borrower needs:
- Barclays: Slight increases across most products, but a cut to one 85% LTV tracker – now 4.98%
- Principality: Cut rates by up to 0.20% on some high LTV deals, but raised others by up to 0.40%
- Darlington BS: Launched new 2-year BTL fixes from 4.54%
Current Mortgage Rates (as of 30 May 2025)
Remortgage | 60% LTV | 2-Year: 3.87% (Halifax) | 5-Year: 3.86% (Barclays)
Purchase | 60% LTV | 2-Year: 3.90% (Santander) | 5-Year: 3.93% (Santander)
Purchase | 75% LTV | 2-Year: 3.99% (Santander) | 5-Year: 4.10% (NatWest)
Purchase | 90% LTV | 2-Year: 4.45% (Furness BS) | 5-Year: 4.38% (Leek BS)
Purchase | 95% LTV | 2-Year: 4.83% (Co-op Bank) | 5-Year: 4.75% (Monmouthshire BS)
Swap Rates Dip Slightly
Swap rates, which lenders use to price fixed-rate mortgages, fell slightly at the end of May.
2-Year: 29 May 2025: 3.784% | 30 Apr 2025: 3.567% | 30 May 2024: 4.685%
5-Year: 29 May 2025: 3.794% | 30 Apr 2025: 3.579% | 30 May 2024: 4.159%
While the recent dip is promising, rates are still over 0.21% higher than a month ago, though notably lower than this time last year.
If you’d like to discuss a new mortgage application, a remortgage, or just get some more general/specific advice, we can put you in touch with our award-winning mortgage brokers. Just contact us here if that’s of interest.
Market Headlines You Might Have Missed
Here are a few other key developments shaping the property landscape this month:
Living costs: According to the latest ONS data, average household costs increased by 2.6% in the 12 months to March 2025.
Planning reform: The Government has announced new planning rules to support housebuilding. Developers will need to commit to build deadlines, councils will gain powers to reclaim stalled sites, and permissions may be restricted for land banking.
Green mortgage opportunities: A Paragon Bank report found that 57% of landlords who’ve made energy efficiency upgrades still haven’t updated their EPCs — potentially missing out on cheaper green mortgage products.
Spotlight on Leasehold Flats
Leasehold flats are seeing renewed interest, with a 14% increase in listings compared to the same time last year. Flats now make up around 25% of all UK property listings – a significant share of the market.
(Source: Zoopla, Rightmove)
Rightmove also reports a 0.6% increase in average asking prices across all property types, signalling stable demand, even as supply rises.
How Have Leasehold Prices Changed Over 5 Years?
While leasehold-specific data is patchy, UK house prices overall have risen by 6.4% annually on average since 2020. Flats have typically seen slower growth than houses, but have rebounded more recently due to affordability factors and changes in urban living trends.
(Source: UK House Price Index – March 2025)
Is Now a Good Time to Buy a Flat?
I think so – yes. Here’s why:
✅ More choice due to increased supply
✅ Sensible pricing and less intense competition compared to houses
✅ Imminent leasehold reforms could boost long-term value
That said, lease length, service charges, and ground rent still require careful checking – I’d always recommend prospective buyers seek expert advice from a solicitor/conveyancer.
What about the Leasehold Reform: What’s Changing?
The Leasehold and Freehold Reform Act 2024 will come into effect soon, and it’ll bring a further boost for flat owners thanks to:
- Lease extensions increasing from 90 to 990 years
- Greater transparency on service charges and insurance
- Easier & cheaper freehold purchase rights
- New rules for freeholders to provide key info faster (with caps on fees)
This could make leasehold properties much more attractive to buyers and investors, especially for flats with short leases or poor freeholder management.
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