The latest Hometrack UK House Price Index for July has revealed that housing market activity is significantly stronger than it was a year ago, defying the usual seasonal slowdown seen during the summer.

The report found that buyer demand is 11% higher, accompanied by an 8% increase in agreed sales. With a record number of homes on the market, more buyers are actively seeking to finalise deals before the start of the school holidays and the August slowdown. Buyer demand and sales agreed are higher across all regions and countries of the UK. Recent changes to the way lenders assess mortgage affordability are another catalyst for increased activity. Home buyers using a mortgage can borrow up to 20% more than they could just three months ago - for the same household income and mortgage rate. This will encourage more buyers to try and secure a home purchase before the summer, according to Hometrack.

However, the company added that more activity isn’t translating into faster price rises. The report stated: ‘Our latest UK house price index to June 2025 shows a continued slowdown in the annual rate of price inflation, which is currently running at 1.3%. At £268,400, the average house price is £3,350 higher than a year ago. House prices are increasing at a faster rate than last June (0.4%), but lower than the 2.1% increase six months ago (December 2024).

‘While mortgage rates are broadly stable, averaging 4.3%, house price inflation is being impacted by a greater supply of homes for sale. There are 12% more homes for sale at a national level, which boosts choice and supports a buyers’ market where bids can be kept competitive, keeping price inflation in check.’