UK housing market activity surged in Q2 2025, with the number of properties listed for sale reaching nearly 500,000 – the highest quarterly supply figure recorded in seven years, according to the latest Property & Homemover Report from TwentyEA.
Year-to-date, sales transactions are up 30% compared to 2024, and buyer demand has risen by 7%.
The average asking price increased by £24,000 to £458,000 during the quarter. However, Q2 also recorded an 8.7% decline in completed exchanges, which TwentyEA attributed to the ongoing impact of the April stamp duty changes.
Katy Billany, executive director at TwentyEA, said: “Q2 2025 is characterised by strong transactional activity across sales and lettings. Whilst the sales market is experiencing rising supply, there are persistent structural challenges in both the sales and rental sectors.
“While overall demand remains resilient, slower transaction timelines and rental affordability issues point to systemic issues that could dampen momentum if left unaddressed.”
Despite the uplift in activity, only 55.5% of properties listed nationally between January 2024 and May 2025 went on to sell.
Scotland saw the highest success rate at 77.7%, while London had the lowest at 37.1%.
Flats were the least likely to sell by property type, with a success rate of 48.8%, compared with over 60% for terraces and semis.
The rental market remained under pressure, with stock levels continuing to fall. The number of properties available to rent is now 19% lower than in 2019, and demand remains high, fuelled in part by net migration of 431,000 people in 2024.
Year-to-date, lets agreed are 6.3% higher than 2024 and at a seven-year high. The average asking rent rose to £1,814 per month in Q2, up £47 from the previous quarter.
TwentyEA also reported a notable shift in the online estate agency sector. eXp became the top brand for new instructions in Q2 2025, overtaking Purplebricks, whose listings fell 25% year-on-year.
Online/hybrid agents now account for just 4.8% of sales exchanges, down from 8.2% in 2019, but have grown to 18.3% of new rental instructions — with OpenRent dominating the segment at 17.1% market share.
Billany added: “It is also the case that the recent Stamp Duty changes are still working their way through the system.
“This, in the short term, may lead to a cooling in buyer demand. Sellers may therefore need to adjust pricing expectations accordingly.
“In the medium to longer term, if inflation and interest rates stabilise, the market should rebalance, but affordability will remain a key constraint to activity and demand.”
