The UK housing market has seen continued growth over the last 12 months, according to Zoopla’s latest House Price Index.

More sales are being agreed (5%) but buyer demand is higher (4%) resulting in a buyers’ market, albeit with variations across the country.

According to Zoopla, those looking to sell over the autumn selling season must price their homes correctly, while recent tax speculation may have a short-term impact on homes valued at over £500,000.

The pace of house price growth has slowed over recent months, due to buyers having greater choice of homes for sale (10% more than last year) and affordability being an ongoing constraint on buying power, especially across the south of England.

However, the slowdown looks to have stabilised, with average house prices 1.3% higher over the last year. This is below the 2.1% price growth recorded at the start of 2025, but higher than 0.6% this time last year. The average UK house price is £270,600, £3,560 more than a year ago.

Media conjecture over potential tax changes, including the removal of stamp duty and its replacement with an annual property tax for homes over £500,000, and a potential capital gains tax liability for home sellers with a property over £1.5m, has stirred the waters and created uncertainty ahead of the Autumn Budget.

Any changes could impact market activity and buyer expectations.

The time a property stays on the market is a key indicator of housing market health and is directly linked to house price inflation.

Zoopla’s latest report shows that in northern regions, a combination of fewer homes on the market than a year ago and better affordability is resulting in speedier sales times.

In contrast, regions across southern England are experiencing a stronger buyer’s market. The supply of homes for sale is higher than a year ago while higher house prices create affordability problems that have extended the time it takes to agree a sale.

Commenting on the report, Zoopla executive director Richard Donnell said: ““We expect UK house price inflation to continue in a range of 1.5-2% over the rest of the year. 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 1.15 million.”

Knight Frank head of London super-prime sales Stuart Bailey commented: “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.”

Propertymark chief executive Nathan Emerson warned: “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.”