The latest (June 2025) UK House Price Index by Hometrack has revealed that a 14% rise in homes for sale has helped sales activity reach a four-year high.

However, the firm says that the pace of sales is slowing, and this will continue over the seasonal summer slowdown. Sales agreed in June are 6% up on last year, as more homes for sale means more buyers are looking to agree sales. Sales are higher year-on-year across all regions and countries of the UK.

Meanwhile, house price inflation is slowing. A greater choice of homes for sale, 14% higher than a year ago, is holding back house price inflation, which was 1.4% in the 12 months to May 2025. This is higher than the 0.3% increase recorded a year ago, but lower than the 2% recorded in February 2025.

While average earnings are rising at 5% a year, higher inflation means less scope for the Bank of England to cut interest rates in the coming months and households continue to face cost of living pressures. Demand for homes remains higher than a year ago but buyers remain price-sensitive, which is limiting house price inflation. This is particularly important in housing markets with higher average prices, creating an additional affordability hurdle for home buyers.

Link between price inflation and change in supply
There is a clear link between house price inflation and the change in the number of homes for sale over the last year, says Hometrack. In London, the South East and South West regions of England the number of homes for sale is 16-19% higher than a year ago, while house prices have risen by less than 0.5% over the last year. In contrast, regions in the north, the West Midlands and Scotland have registered only a modest change in supply, creating an element of scarcity, which is supporting above-average price inflation of 2-3%.