Your May 2025 Property Market Update

 

Welcome to the May 2025 edition of Property Market Insights from Quealy & Co. Estate Agents in Kent. Keeping up with the property market is really important if you are planning on selling or buying a property in Kent, and we're excited to share the latest insights with you for this month!

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House prices remain stable, with regional peaks.

April showed varied house price trends, but the overall situation remains strong. The average UK house price is now at £297,781, according to Halifax, with a modest +0.3% monthly bump and a solid annual growth rate of +3.2%. This is the highest we've observed this year. Nationwide mentioned a -0.6% monthly dip, yet their annual growth is at 3.4%, which is still promising.

Over on Rightmove, asking prices have hit a new national record, up 1.4% to £377,182.

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Stamp Duty changes slightly disrupt momentum.

The expected Stamp Duty increase in early April has passed, yet our market moves forward. We saw a typical surge of completions in March, but any post-deadline slowdown has been mild so far.

It's comforting to know that the number of agreed sales falling through remains steady, and lots of buyers who missed the Stamp Duty deadline are sticking with their plans. With the queue of completions easing by almost 24,000, we're seeing some normalisation.

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Buyer demand decreases, albeit marginally.

Buyer demand has slightly cooled compared to earlier this year. Zoopla reports demand is only 1% higher than last year, down from 10% above at the start of 2025. Seasonal changes like the Easter holidays and economic uncertainty have made buyers cautious.

However, demand is still strong. Halifax notes that activity remains robust compared to recent years, due to improved affordability and a greater supply in the market.

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An increase in available homes enhances options.

Supply looks better than last year! Homes listed for sale increased 12% year-on-year, with agents averaging 34 homes per branch, up from 31 last spring.

This increase in available homes keeps house price inflation in check, providing buyers more choices, a welcome change from previous tight supplies. Additionally, many sellers are also buyers, maintaining lively transactions.

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The mortgage market reveals signs of opportunity.

The Bank of England cut the base rate to 4.25% on May 8 to tackle inflation, with more cuts possible if inflation continues to drop.

Mortgage rates are improving! According to Moneyfacts, on May 8th, the average two-year fixed mortgage rate was 5.14%, while the five-year rate was 5.08%.

Lenders are loosening stress testing rules, potentially increasing buyer affordability by 15–20%. This will boost transaction volumes ahead rather than just house price growth.

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Summary: a market finding balance.

The property market isn't without its hurdles. Global trade worries and shifting confidence are in the mix, but the core conditions are supportive. Low unemployment, real wage growth, improving affordability and a growing number of listings all paint a positive picture.

While house price growth might slow over the summer, early signs suggest activity levels will stay steady. With stronger stock levels, competitive mortgage deals, and a gradual return to normal buying conditions, this summer looks set to be stable, if a bit more measured.

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Moving Home in Kent?

Quealy & Co. brings you all the latest property market news each month. For a more localised property report for your specific postcode, don't hesitate to get in touch with the team on 01795 429836 or email hello@quealy.co.uk. We’d be happy to send you one for free.

You can also use our instant online valuation tool if you want a ballpark figure of your home's value to sell or to let: Click here.

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Note: The information in this article is based on data as of May 2025 and may change. Always seek professional advice for your specific circumstances.