For those who know how to read the signals, there is real opportunity in the current market.
Asking prices are adjusting, buyers are negotiating harder than ever, and rents are quietly but consistently climbing.
Whether you’re looking to sell, buy or let, the question is not whether the market is moving, it’s whether you are moving with it. Here’s what the latest data and a market in transition means for you.
The bigger picture
The national average asking price for a home coming to market in June stands at £376,191, a monthly fall of 0.6% and a larger than usual decline for this time of year.*
Prices now sit 0.5% below where they were a year ago, and at the same time, the average two-year fixed mortgage rate has fallen to 5.07%, down from last month’s 5.18%.* In the lettings market, average UK rents reached £1,340 in May, marking the third consecutive monthly rise, with a 2.5% yearly increase.^
The picture is one of a sales market that favours well-prepared buyers, a lettings market that continues to deliver for landlords, and a pricing environment that demands realism from sellers.
A market of two halves: regional differences
The national picture tells one story, but the regional data reveals a more nuanced one. On the sales side, yearly prices have fallen across all southern England regions and Wales, while more affordable northern areas such as the North East and Scotland are holding up comparatively well against last year.*
In the lettings market, rental growth is strongest in London at 3.5% annually and Scotland at 3.9%, while Wales and Yorkshire and the Humber have seen the greatest improvement in affordability for tenants over the past year.^ Average rents range from £2,161 per month in Greater London down to £710 in the North East, a difference of over £1,450 per month.^
For landlords, Scotland and London stand out as the regions delivering the strongest rental growth, while the more affordable Midlands and northern regions continue to attract investors seeking higher yields relative to purchase price.
For sellers
If you are thinking of selling this summer, the most important thing to understand is that buyers have more choice than they have had in years. The total number of homes available for sale remains at a record high, even though the number of new listings is down 5% compared with last year.*
That means your property is competing for attention in a crowded marketplace, and pricing it correctly from the outset has never mattered more. With over a third of new listings that come to market currently not going on to sell.*
The good news is that sales activity remains steady. Sales agreed are down 6% year on year, but that figure sits comfortably in line with 2024 and around 5% above 2023 levels.* Homes that are realistically priced are still finding buyers.
The message is clear in that the market isn’t stalling, but it’s price sensitive. If you price your home in line with what buyers are genuinely willing to pay, you stand a strong chance of achieving a sale. If you overprice, you risk your property sitting on the market and eventually requiring a larger reduction. Working with your local agent to set a competitive asking price from day one is the smartest strategy in this market.
For buyers
This is a market that rewards patience and preparation. With stock levels at a historic high and sellers adjusting their expectations, you have more room to negotiate than at almost any point in recent years. First-time buyers are now securing an average of 1% more off asking prices compared with April 2025, translating into an average additional saving of £2,690 per purchase.**
Mortgage affordability is also moving in the right direction. The average two-year fixed rate has fallen to 5.07%, and there is greater stability in the lending market than we have seen for some time.* While rates could still move in either direction depending on the broader economic picture, the current environment offers a more predictable basis for budgeting your monthly repayments.
It’s worth being aware that stamp duty costs remain a factor, particularly if you’re a first-time buyer. Across England, 30% of first-time buyers are now purchasing above the £300,000 threshold, the highest share on record.** In London, that figure rises to 78%.** Factoring stamp duty into your budget early will help you avoid surprises further down the line.
For landlords
The lettings market continues to offer a stable and growing income for landlords. Average UK rents rose by 1.1% in May, reaching £1,340 nationally and £1,146 outside London.^ On an annual basis, rents are up 2.5% across the UK, with the strongest growth in London and Scotland, while all regions recorded monthly increases.
Affordability for tenants has also shown a marginal improvement, with the average share of income spent on rent being 0.2% lower than a year ago.^ An encouraging sign for the sustainability of rental demand, achievable rental prices for tenants means void periods tend to stay low and tenancies tend to last longer.
For landlords considering expanding their portfolios, the current sales market presents a compelling window. With asking prices softening, buyers negotiating harder and stock levels high, there is an opportunity to acquire well-located properties at more favourable prices than we have seen in recent years. The combination of steady rental growth and a more competitive purchasing environment makes this a moment worth exploring with your local lettings team.
Looking ahead
As we move deeper into summer, the market is likely to remain price-sensitive on the sales side, with buyers continuing to benefit from choice and negotiating power. In the lettings market, the trajectory of steady rental growth looks set to continue.
Whether you are selling, buying or letting, the common thread is the same: good advice, realistic expectations and timely action will put you in the strongest possible position. Your local agent is here to help you make sense of the numbers and take your next step with confidence.
