House price growth slowed to 1.4% as more homes came on the market and buyers had greater choice, Zoopla’s latest House Price Index (HPI) found.
The average UK house price was £268,400, which was £3,960 higher than the same time last year.
The research found that since last year, the average estate agent had 37 homes for sale, up from 32, and sales agreed were up 6% year-on-year.
More homes for sale meant buyers had more choice, holding back price growth, especially in the South, South East and South West where the number of homes for sale was up 16-19%.
In these areas, house prices rose by less than 0.5% over the year.
In the North, West Midlands and Scotland, there were smaller increases in homes for sale, which meant less choice for buyers and above-average price growth of 2-3%.
House prices dropped slightly in higher value areas, especially where average property values were over £500,000.
These areas, making up 8% of UK homes, included inner London and parts of southern England.
Prices were down 4.3% in West Central London and 1.3% in West London.
Torquay and Truro in the South West also saw prices fall by over 1%.
More affordable areas saw stronger growth, with house prices rising by 2.7% in markets where the average was below £200,000 and by 1.9% in areas priced between £200,000 and £250,000.
The fastest price growth was in parts of the North West and Scotland, including Wigan (4.3%), Falkirk (3.8%) and Blackburn (3.6%).
The report noted that tax and policy changes for second homeowners and landlords were putting more homes on the market and reducing demand in some local areas, adding to the downward pressure on prices.
The average time to sell was 45 days, similar to last year.
Homes in the North East sold fastest at 35 days, while in the South and Wales it took over 50 days.
Of all homes on the market, 22% had been unsold for over six months and 23% had been on the market for three to six months.
The average time a home stayed unsold was 75 days.
Many sellers held out for a particular price, but may have to wait longer to achieve it.
The report stated sellers needed to balance holding out for price with the desire to move quickly.
Richard Donnell, executive director at Zoopla, said: “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.
“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.”
Donnell added: “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 per cent more sales in 2025 but house price inflation will remain between 1 and 2 per cent.”
Sarah Cartlidge, branch manager at Fraser Reeves estate agent in the North West, said: “We’re delighted to be seeing increased vendor confidence this year, with more properties coming on to the market than 2024, however, property price remains key to agreeing a sale.
“We’re always keen to emphasise to prospective vendors that they do need to price positively and realistically from the get-go, in order to secure a good buyer in good time, and to make the best first impression possible when their property hits the market.
“We know that any property can sell for the right price, taking into account the local competition and the particular characteristics of each individual home.”
