New mortgage affordability rules help UK housing market avoid summer lull | Housing market
According to a property website, the Typical Summer stagnation in the housing market of the UK was avoided from the existence of larger home loans that fueled the “buyer’s market ..
Despite the symptoms of a lively market, Zoopla said that the buyers have been reduced to the house price for 2025 as they consider the increasing stamp tax costs in their proposals in England and Northern Ireland.
The number of record houses for sale kept the price increases under control, in June, an average UK house price increased by £ 3.350 (1.3%) compared to the previous year at 268,400 £, he said.
Richard Donnell, General Manager of the Research and Insight team in Zoopla, described the housing market as “in a wide range of balances with the flow of new properties matched with the appetite of home hunters.
“We see healthy demand and sales levels, but this does not increase price inflation. In fact, more houses offered for sale in Southern England re -strengthens the market of a buyer and controls price increases.”
While the market activity usually slows down in summer, it does not take place this year. In July, the number of buyers is 11% higher than the same month of 2024 and caused an increase of 8% in sales.
Earlier this year, property experts had a moisturizing effect on the growth of home price after the end of a stamp tax holiday in England and Northern Ireland on March 31st. However, when the state -backed changes in the form of evaluating the mortgages of lenders’ mortgages, when they serve as a catalyst for increasing activity. Hosts who use a mortgage can now borrow up to 20% more than three months ago.
Donnell increased the power of purchasing a less strict test. ” He said.
At the beginning of the year, Zoopla predicted that home prices would increase by 2% in 2025, but it reduced it to 1%. The index showed that the annual price inflation rate decreased to 1.3% in June, while the report pointed to regional differences.
While the prices of housing in Scotland, Wales and Northern England are of 2-3% annually, prices are increasing much slower in the South. Prices increased by 0.2% in Southeast and London and 0.3% in the southwest.
The capital figure is withdrawn by decreases in some areas, including 1.5% decrease in Western London. Truro, Torquay and Exeter in other parts of the UK, respectively, 1.3%, 1.2% and 1.1% decreased, respectively some of the biggest decreases.
Donnell said, “More home supply for sales and higher mortgage rates than expected are the main causes of weaker growth,” Donnell said.
New figures from Rightmove showed that they asked for average rents throughout London, except London, and rose to £ 1.365% per month in the second quarter of 2025. The average ratio advertised in the capital reached £ 2,712 with an increase of 0.5% in the quarter.
The report of the property website said that the average monthly rent paid by new tenants is £ 417 more than 2020. This is an increase of 44%, leaving a 36% increase in average earnings in the same period.
However, most of this growth occurred at the height of Covid pandema. Since 2023, the annual rent increases slowly slowed down as supply and demand were balanced again. The number of existing properties is now 15% higher than last year. However, 29% of the level of 2019 is still below.
The less crazy market means that homeowners take longer to find tenants, in some cases lead to rent reductions. Since 2017, the highest number of marketing was cut about one quarter (24%).
Although Rightmove’s property expert Colleen Babcock asked rising rents, “Big picture annual rent increases continue to slow down,” he said. “Supply and demand are gradually re -balanced towards normal levels, but we still have a way to go before reaching the pre -20120 levels,” he added.
