51% of respondents thought house prices would rise in the next year, with 65% expecting rents to go up, the Property Sentiment Index (PSI) from OnTheMarket found.
Among sellers, 39% expected to find a buyer within three months of listing, and another 36% expected an offer within three to six months.
Nearly half (49%) said it was unlikely the Government would hit its new homes target in its first term.
However, 46% said they would consider a new build for their next home.
The research also found 37% of property seekers had never heard of the Renters’ Rights Bill, 33% were aware but didn’t know anything about it, and only 8% said they knew a lot.
David Corrie, head of residential agency at Galbraith, said: “We have witnessed buyer confidence improving in the market due to falling interest rates and therefore mortgage rates coming down, allowing people to re-engage and make a move.
“Notably, first time buyers coming through have helped stimulate the market with lending in place and not being reliant on a sale to move forward.
“Rural Scotland offers a superb work-life balance, beautiful scenery and good value for money compared with many other parts of the UK.”
Corrie added: “The small holdings market has been notably active with many selling well at a competitive closing date.
“Demand does remain strong for properties with a sizable portion of land, be it for extra privacy, growing your own produce, equestrian lovers with space for stables, or many who run a rural business from home and require land to do so.
“Spring and early summer is a naturally active time of the year, spurred on by the favourable weather we experienced throughout May.
“This has encouraged sellers to get their property ready for the summer market and as such we are witnessing signs of a promising market ahead.”
Matt Thompson, head of residential sales at Chestertons, said: “In April, some house hunters paused their search amid the Easter holidays but were quick to resume their activity in May which was further driven by the Bank of England’s decision to cut interest rates to 4.25% and a number of sub 4% mortgage products.
“As sellers also remained motivated, the market experienced an uplift in the number of properties being put up for sale which contributed to a steady volume of agreed sales throughout May and June.”
Adam Jennings, head of lettings at Chestertons, said: “Overall, the UK’s rental market remains highly competitive as a growing population results in a continuous requirement for suitable housing.
“Whilst some areas of the UK may have witnessed an adjustment in supply or demand levels as well as rental inflation, the majority of cities and particularly London, still see a single property attract several tenant enquiries.
“Despite occasional market fluctuations, demand will likely always outweigh supply which can result in a challenging property search for tenants.”
Jennings added: “In fact, based on 2025 market trends this summer may be the most competitive we have seen for many years.”
Michael Peacock, head of Chase Buchanan, said: “In the first half of 2025, the South West of England’s property market has been characterised by a mix of challenges and opportunities.
“House Price Trends have seen modest growth, with the average property price around £356,000 between May 2024 and April 2025.
“The market has also experienced an increase in homes for sale, with 21% more properties available compared to the previous year, giving buyers an abundance of choice.”
Peacock added: “As a result, when entering the market, the asking price needs to be set at a realistic level.
“Recent reductions in interest rates, which have eased affordability pressures by making sub-4% mortgage deals more accessible have boosted activity and with rents remaining high, there has been a significant increase in first time buyers entering the market.
“Lifestyle changes, such as remote working opportunities, continue to attract people to the region.”
