Summer Market Update

Summer Market Update

As we move into the second half of 2025, the property market across the UK is showing signs of renewed confidence and activity—especially here in the North West.

According to Zoopla’s latest House Price Index, average house prices in the UK have risen by 1.4% year-on-year, bringing the national average to £268,400. This means prices are up around £3,700 compared to the same time last year. Sales activity has picked up significantly, now moving at the fastest pace we've seen in four years. This improvement has been supported by a 14% increase in homes for sale compared to last summer, offering buyers more choice and sellers more competition.

In the North West, the picture is even more encouraging. Halifax reports a strong 4.4% annual price rise in our region, which comfortably outpaces growth in many areas of southern England. This suggests that the North West remains one of the most resilient and attractive areas for both home movers and investors.

Buyer sentiment has also shifted noticeably. After a quiet spell earlier in the year, demand is bouncing back. According to the Royal Institution of Chartered Surveyors (RICS), buyer activity is now up compared to late 2024, with June seeing aA return to positive territory. Mortgage approvals are rising, affordability tests are being relaxed slightly, and first-time buyers are once again making their way into the market.

Despite the uplift in activity, overall prices are holding steady rather than surging. Halifax reports that prices were flat in June, while Nationwide saw a very slight monthly dip of 0.8%. Zoopla’s figures suggest a modest but positive trend. The key factor is the increased number of homes on the market. With more stock available, sellers need to price competitively to attract the right buyers.

Looking ahead, most forecasters expect modest house price growth for the rest of 2025. Leading analysts such as Knight Frank and Savills are predicting national growth of between 3.5% and 4%, driven by hopes of interest rate cuts and a more stable lending environment.

In terms of local conditions, there are several reasons why the North West continues to perform well. Firstly, affordability remains a major strength. Buyers here get more for their money compared to regions further south, and this is attracting both local movers and those relocating from other parts of the country. Secondly, the growing availability of properties means more opportunities to find the right home without being rushed. This is especially beneficial for families and first-time buyers who want to take their time.

Mortgage conditions are improving too. We’re starting to see the return of sub-4% mortgage deals, and lenders are becoming slightly more flexible. In addition, the government’s upcoming “Freedom to Buy” scheme—expected to be confirmed this summer—could give a further boost to buyers with smaller deposits.

At McDonalds Estate Agents, we’ve seen first-hand how these market changes are playing out. Accurate pricing and well-presented properties are selling quickly, especially those that cater to growing families and first-time buyers. With summer in full swing, now is also a great time to highlight outdoor features like gardens, patios and entertaining spaces—something we know buyers are actively looking for.

If you’re thinking of selling, now could be an ideal time to get your property on the market while demand is strengthening and mortgage options are improving. And if you’re looking to buy, there are some excellent opportunities available across the region—particularly if you’re prepared to act quickly and negotiate confidently.

Our region is moving into a more balanced, stable market phase. With confidence returning and more choice than we’ve seen in years, 2025 is shaping up to be a strong year for buyers and sellers alike.

For honest, local advice on buying or selling in the current market, get in touch with the McDonalds team today. We’re here to help you make your next move with confidence.
 

Sources from Zoopla and Money Week