Is the housing market recovering? Property choice for buyers is on the rise
The UK housing market is showing renewed signs of vitality as serious sellers adapt to shifting conditions and buyers enjoy a surge in choice.
New data from Zoopla confirms that sales agreed per Estate Agent are at their highest level for this time of year since the post-pandemic peak of 2021. With improved mortgage rates, rising affordability, and a growing supply of homes on the market, the housing sector is regaining momentum and confidence.
Improving mortgage rates and housing affordability
Zoopla’s latest figures show that this latest surge in the market is driven by a greater supply of homes on the market, as well as recent improvements in mortgage rates and housing affordability, with a 13% rise of homes for sale since this time last year.
Strong house sales driven by location
The strongest areas of the housing market are where homes are more affordable, covering most areas outside the southern regions of England, according to Zoopla. They surmise that the increase of homes for sale is boosting buyers’ choice and sustaining market growth.
Richard Donnell, Executive Director of the popular online property portal, believes the housing market will continue to improve. Specifically, he expects 1.15 million property transactions to happen this year. That number is higher than the number of sales that took place in 2024, suggesting a positive trend or recovery in the housing market.
Donnell says: “The outlook of the market is rooted in housing affordability, which varies widely between the southern regions of England and the rest of the UK. Higher borrowing costs have hit the South harder, where prices are higher than in northern England and Scotland, where homes are more affordable relative to incomes.”
Mortgage shifts and future insights
Knight Frank revised its 2025 house-price forecast in mid-May, increasing it from 2.2% to 3.5%, citing improving mortgage rates as a key factor. They have raised their outlook for the following three years, boosting its projected cumulative growth from 19.3% to 22.8% for the period between 2025 and 2029.
The current increase in sales means growth in confidence, with mortgage holders being able to borrow up to 20% more as an outcome from changes in affordability testing.
Looking ahead
With these trends in motion, the outlook for the UK housing market remains cautiously optimistic. As buyers take advantage of improved mortgage conditions, market activity is set to remain robust through the remainder of 2025. While regional differences in affordability will persist, the combined impact of rising confidence, greater choice, and lender flexibility suggests that the housing sector is on track for a sustained, healthy recovery.