The latest House Price Index (HPI) from Zoopla found more homes were sold over the last year, up 5%, but buyer demand was up 4%, keeping it a buyers’ market overall.
Research found sellers heading into the autumn needed to get the price right, especially given recent speculation over property tax could have a short-term impact on homes valued above £500,000.
House price growth slowed over recent months as buyers had more choice, with 10% more homes for sale than last year, and affordability remained a problem, especially in the South.
The slowdown appeared to have settled, with average UK house prices up 1.3% over the year.
This was below the 2.1% growth at the start of 2025, but higher than 0.6% a year ago.
The average UK house price was £270,600, up £3,560.
A third of buyers said speculation about new property taxes, such as replacing Stamp Duty with a yearly property tax on homes over £500,000 and possible capital gains tax on homes over £1.5m, made them uncertain.
In the North West and North East, homes sold fastest, taking 27 days on average in July, 23% quicker than the national average of 35 days.
House price growth was 2.7% in the North West and 2.1% in the North East.
In the South, homes took longer to sell, averaging 39 days in July, 11% longer than the national average.
House price growth in the South East and South West was just 0.3%.
Homes that needed a price cut to attract buyers took 2.4 times longer to sell than those priced right from the start.
This was on top of the usual four to six months from sale agreed to completion.
One in 10 homes had a price cut in July, higher than the five-year average of 6%.
Coastal towns in the South like Truro, Exeter and Bournemouth had the highest number of unsold homes, with over a quarter on the market for more than six months.
Prices in these areas were 1.1% and 1.4% lower than a year ago.
York, Torquay and Llandrindod Wells also had above average unsold stock, while places like Dundee, Wolverhampton, outer London suburbs and Northampton had a lack of supply.
Richard Donnell, executive director at Zoopla, said: “There is plenty of demand for homes and more people are looking to move.
“However, buyers also have much greater choice to choose from, especially across areas of southern England.
“There is a clear link between buyer choice and price inflation and how long it is taking homes to sell.”
Donnell added: “Sellers need to understand local market conditions when considering how to market their home, setting the right price and how quickly they would like to sell.
“The risk of being too ambitious on price is your home taking more than twice as long to find a buyer – or not selling at all.
“We expect UK house price inflation to continue in a range of 1.5-2% over the rest of the year.”
He said: “There are signs that prices are firming in southern England but price growth is slowing across northern regions.
“The market continues to record seasonally strong sales as those selling their home seek to secure their next home.
“The market remains on track for 5% more sales in 2025 at 1.15m.”
Stuart Bailey, head of London super-prime sales at Knight Frank, said: “Good advice around not just pricing but strategy, from experienced professionals, has never been more important.
“The autumn market is about to begin and this year will be shrouded by speculation of how to decipher the government’s messaging on property tax.
“Either way, sentiment impacts decision making and the longer a property takes to sell (if mis-priced for example), the bigger the risk of something going wrong, as buyers become ever more hesitant, and the risk of market slow down increases.”
Nathan Emerson, CEO of Propertymark, said: “Stable house prices within the housing market are a welcome sign for groups such as first-time buyers, who can better take advantage of a period of steadiness.
“Despite property transactional taxes increasing in some nations and financial and economic pressures continuing for many, there still seems to be plenty of property choice for buyers.
“It remains important that sellers continue to have realistic price expectations and place their property on the market accordingly to help empower an efficient sales process.”
Emerson added: “It is also important to consider the crucial role that housing plays within the wider economy, and it is positive to see commitments from all governments across the UK to deliver much-needed new housing stock to keep pace with predicted population growth.
“We are also hearing of future potential proposed changes regarding Stamp Duty.
“However, it is vital that tax reform is conducted in a way that does not penalise aspiring homeowners with additional costs that hinder their chances of moving house.”
