August Property Market Analysis

High summer has arrived but is the UK property market running hot? After digesting the latest round of reports, the verdict is we’re in a stable period. The absence of drastic highs and lows seen in previous years is great news for home movers.

Zoopla found the UK’s average house price barely changed over the last three months. The £268,400 recorded in June, but published in July, is the same as in April and is £200 less than in May. The portal says house prices have increased 1.3% this year to date.

House prices hold firm

The latest Halifax house price index concurred on the movement side of things. The lender said there was no rise or fall in values during its latest monitoring period. It says the UK’s average house price is £296,665.

Demand up, mortgage rates down 

Underpinning today’s market is a 6% year-on-year increase in potential buyers contacting estate agents, reports Rightmove. There has also been a 5% increase in the number of sales being agreed and a reduction in mortgage rates. In fact, the portal said borrowers taking out a two-year fixed rate home loan now typically pay £150 less per month when compared to 2024.

Rental value movement continues to be the headline story in lettings. Zoopla says rents have increased £221 in the last 3 years, compared to a £218 increase in monthly mortgage payments. It says tenants are now paying an average of £1,283 per month.

Zoopla’s regional data showed rents increased most sharply from the Midlands upwards. Increases of 30% or more over the past three years were recorded in Wolverhampton, Walsall, Falkirk, Bolton, Wigan and Oldham. There were also increases of up to £400 over a three year period in outer London areas such as Ilford. 

Rightmove tracked quarterly trends, looking at how much average asking rents had increased between Q1 and Q2 of 2025. Outside of London, average asking rents climbed 1.2% to £1,365 per month. There was a less pronounced increase in the capital, with the average asking rent rising by 0.5% to £2,712 per month.

HomeLet’s latest monthly rental index brought us right up-to-date. Although the

UK’s average monthly rent increased just 0.1% in its last reporting period, rent increases were rampant in Scotland (up 3.9%) and in Wales (up 1.9%). 

Some regional rents moderate

Conversely, rental values have flatlined in the West Midlands, Yorkshire & the Humber, and the East of England. Elsewhere, rents took a tumble in the South West (down 0.9%) and in the South East (down 0.5%). When all of this movement was taken into account, the UK’s average rent has increased by 0.7% in the year to date.

Values that continue to edge upwards are part of the reason why rental yields are healthy. This was evidenced in Fleet Mortgages’ latest Rental Barometer for Q2 2025. It noted a 0.1% lift in rental yields, rising from 7.4% to 7.5%.

Landlords remain invested

Landlords looking at this bigger picture are deciding to stick with property investment. Fleet Mortgages also found 54% of all mortgage applications in Q2 2025 were from landlords with four or more properties, with the average portfolio size growing to 10 properties. Encouragingly, the number of first-time landlords remained consistent.

So, where are landlords investing? There is evidence to suggest buy-to-let activity is being concentrated on areas with large student populations. Paragon Bank identified the postcode CF24 in Cardiff as the number one investment hotspot. Here 4 in 10 properties have an average yield of 8.9%. Postcodes in Plymouth, Loughborough, Nottingham, Stoke-on-Trent, Birmingham and Manchester were also identified as top buy-to-let locations.

If you would like to know more about your local property market, please get in touch.