| Average asking prices hit record highs, but growth is slowing, as analysts suggest we’re in a buyers market | Moving costs have risen sharply across the UK due to changes in tax and associated fees | First-time buyers see improved affordability supported by flexible mortgage products |
As summer begins, the housing and mortgage markets are experiencing a mix of milestones and shifts offering both opportunities and challenges for buyers and movers.
House prices at a new high
The average asking price of a property coming to the market climbed to a record high of just under £380,000 in May1. However, the annual pace of growth appears to be slowing and many analysts suggest we are now in a buyers’ market.
The cost of moving also rises
Across the UK, the average cost of moving home has surged by 13% over the last year alone2. In England, this is largely linked to changes in Stamp Duty Land Tax (SDLT) from 1 April. Taking into account initial costs including a deposit, Stamp Duty, conveyancing, mortgage costs and removals, one estimate3 puts the cost of moving in England at nearly £52,000. This compares to £34,429 in Wales (where Land Transaction Tax applies rather than SDLT), £32,172 in Scotland (where Land and Buildings Transaction Tax applies rather than SDLT) and £31,353 in Northern Ireland. So, whichever nation you live in, upgrading or relocating has become more financially challenging for many households.
First-time buyer affordability at 10-year high
However, despite rising property prices and increased initial costs, there is promising news for first-time buyers as affordability for this group has reached its best level in a decade4, helped by a combination of wage growth, stabilising property values and more accessible mortgage options.
Low and no deposit options on the rise
Lenders are increasingly catering to new buyers with limited savings. The number of low-deposit mortgages is at a 17-year high5, reflecting greater flexibility in the lending market. Furthermore, 100% mortgages, which require no deposit, have made a cautious return.
Looking ahead
While high asking prices and moving costs present clear hurdles, improved affordability and expanded lending options offer hope for first-time buyers. As the summer unfolds, the market seems to be recalibrating, potentially paving the way for a more balanced housing landscape.
1Rightmove, 2025, 2,3 &4 Yopa, 2025, 5Moneyfacts, 2025
As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.
