Home values flat in London and the South as listings hit highest level in years
UK house price growth has slowed as the number of homes on the market increases, property platform Zoopla has reported.
Annual house price inflation has cooled to 1.4%, down from 2% earlier this year, with average property values falling in some areas of London and the South of England.
The average UK home now stands at £268,400 — around £3,960 more than a year ago, according to the latest Zoopla House Price Index.
An increase in property listings has given buyers more choice, weighing on price growth. The average estate agent now has 37 homes for sale, up from 32 last year. This rise in stock is supporting a 6% increase in agreed sales compared to 2023.
Regions with the biggest rise in listings have recorded the weakest price growth. London, the South East, and the South West have seen housing supply jump 16–19% annually, but prices in these areas have grown by less than 0.5% year-on-year.
In contrast, the West Midlands, northern England, and Scotland have had a more modest increase in available homes, which has helped lift prices by 2–3% in those areas.
Higher-priced housing markets have seen modest price falls. Zoopla reports a 0.2% average decline in markets where homes are valued above £500,000 — a segment that makes up about 8% of UK properties.
Notable annual declines include West Central London (-4.3%), West London (-1.3%), Truro (-1.3%), and Torquay (-1.7%).
Meanwhile, more affordable markets are showing stronger growth. Prices are 2.7% higher in areas where the average home costs less than £200,000, and up 1.9% in markets with prices between £200,000 and £250,000. These segments together make up half the UK housing market.
Fastest-growing areas include Wigan (4.3%), Falkirk (3.8%) and Blackburn (3.6%), where relative affordability continues to drive demand.
According to Zoopla, government policies affecting landlords and second homeowners are also increasing sales activity, particularly in regions with higher supply, putting additional pressure on prices.
Properties are taking an average of 45 days to sell, with faster sales in the North East (35 days) and slower times in Wales (57 days). Southern England is seeing the longest delays, averaging more than 50 days due to increased choice for buyers.
Zoopla’s data shows that 22% of listings have been on the market for more than six months without selling. Another 23% have remained unsold after three to six months. The average time unsold homes remain listed is 75 days.
“The number of buyers and sellers agreeing home sales continues to increase year-on-year, demonstrating a continued desire of more households to move home in 2025,” said Richard Donnell, executive director at Zoopla. “Improving mortgage affordability will support buying power in the second half of the year.
“However, buyers remain price-sensitive, especially in higher-value markets where the number of homes for sale has grown the most in the last year, boosting choice for home buyers. Serious sellers need to be realistic on where they set their asking price in order to achieve a sale and secure a home move in 2025.
“The market remains on track for 5% more sales in 2025, but house price inflation will remain between one and two percent.”
For Nathan Emerson, chief executive of industry body Propertymark, it was encouraging to see further house price growth, as people continue to approach the buying and selling process with improved certainty.
“Although we are still seeing elevated base rates currently sitting at 4.25%, we are starting to see some high street lenders offering sub-4% mortgage deals.
“We have witnessed the recent announcement of a National Housing Bank which hopes to combine a public investment of £16 billion and a potential private investment of £53 billion to help make 500,000 new homes a reality, which will likely be universally beneficial to all when it comes to homeownership.”
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