May 2025 Market Review
UK Pricing Reaches Record Highs Amid Rising Stock and Measured Demand
The UK residential market has reached a new benchmark, with the average asking price now standing at £379,517. This represents a modest monthly increase of 0.6% (+£2,335), a continuation of upward momentum, albeit at a more tempered pace. Notably, this is the smallest May increase recorded since 2016, suggesting that price growth is beginning to moderate in response to shifting buyer sentiment and rising availability.
Supply Improves, Enhancing Buyer Optionality
Inventory levels remain elevated—the highest seen in over a decade—providing prospective purchasers with significantly greater choice across all price points. The early part of the spring market was characterised by a flurry of activity, particularly in March, as buyers moved swiftly ahead of stamp duty adjustments. By contrast, April saw a 4% decline in buyer demand year-on-year, while new vendor instructions rose by 14%, reflecting continued seller confidence and a balanced market environment.
Prime Central London – A Market of Strategic Opportunity
In Prime Central London, values remain well below historic peaks, continuing to present compelling long-term value. With prices still substantially beneath the 2014 high, both in nominal and real terms, the current environment offers discerning buyers a rare opportunity to enter or expand their holdings in one of the world’s most prestigious property markets at a significant relative discount.
As the market stabilises and the outlook for interest rates potentially shifts in a more favourable direction, we anticipate a continued reawakening of demand, particularly for properties that are competitively priced and well-located. In this context, quality assets remain highly sought-after, and opportunities persist for those positioned to act decisively.
