The UK housing market edged towards a “modest” recovery in 2025, according to the latest Propertymark analysis of sales activity and stock levels.
The firm’s latest housing market insight report revealed that 6% of properties achieved their asking price at sale in August.
The average UK house price also edged up in the month, continuing its long-term momentum and reaching £270,000.
Despite this activity affordability remained constrained due to elevated mortgage rates and tax uncertainties. Propertymark found 32% of adults saw it as ‘very or somewhat’ difficult to afford rent or mortgage payments in August.
Last month, 56% of member agents reported that rents remained generally static with 10% seeing an overall fall while 38% revealed that rents had increased.
Tenant demand jumped in August, with the average number of registrations per Propertymark member breach reaching 109, up from just over 80 the month before.
Although rental stock increased, to 13.34 properties per member branch, demand continues to outpace supply with eight applicants per property in August.
“The UK housing market has seen a modest recovery in 2025, with sales activity picking up and stock levels rising across most regions,” said Nathan Emerson, CEO at Propertymark.
“In the rental market, the pace of rent growth is slowing, and arrears are starting to fall. In some areas, demand has softened, particularly where more rental stock is returning to the market, giving some tenants a bit more breathing room.
“However, the general lack of stock against a backdrop of increasing demand is still an ongoing concern, and without a boost, long-term sustainable rent levels will not be achievable.”
