A growing number of UK homebuyers and sellers are expecting house prices to rise over the coming year, even as confidence in the Government’s ability to meet housing targets remains low, according to the latest Property Sentiment Index from OnTheMarket.
From gardens and garages to realistic asking prices, buyers and renters continue to prioritise practical features. With search terms like “garden” and “off-street parking” remaining top of mind.
The June 2025 report reveals that over half (51%) of consumers believe property prices will continue to climb over the next 12 months, following a 3.5% annual increase to £265,000 in the year to April. Only 10% expect prices to fall, while 21% predict they will remain stable.
Despite broader concerns about affordability and government policy, sentiment among buyers and sellers remains upbeat when it comes to how quickly they can transact.
OPTIMISTIC SELLERS AND BUYERS
Among sellers, 39% expect to secure a buyer within three months, and a further 36% believe a sale will be agreed within six months. Just 4% expect it will take more than a year.
Buyers are similarly optimistic: 27% expect to find and secure a property within three months, and 28% expect to do so within six months. Only 7% foresee the process taking more than a year.
Financial confidence also remains relatively strong. Seven out of 10 (70%) of property seekers said they felt either very (44%) or fairly (26%) confident about raising the funds required to purchase a home.
However, there is scepticism about the delivery of new housing stock. Since Labour’s election in July 2024, the Government has pledged to build 1.5 million new homes by 2029. Yet only 26% of respondents believe this target is achievable, while 49% think it is unlikely to be met.
Interest in new builds remains solid, with 46% of respondents saying they would consider purchasing a newly built home. However, rental market sentiment is more cautious.
AFFORDABILITY CONCERNS
With 66% expecting rents to rise over the next 12 months, affordability concerns remain top of mind. Yet confidence in securing a rental property is still high – 51% of renters believe they will find a suitable property within three months.
Awareness of the Government’s proposed Renters’ Rights Bill is limited. Around four out of 10 (37%) of respondents said they had never heard of it, and a further 33% were aware of the legislation but knew little about it. Only 8% claimed to know a lot.
OnTheMarket data also shows continued growth in listings across both sales and lettings, with a 15.8% rise in new sales instructions and a 12.7% increase in rental listings between February and March 2025. Meanwhile, price reductions remain stable, with 13% of listed homes having their asking prices lowered in the month to 1 June.
IMPROVING CONFIDENCE
David Corrie, Head of Residential Agency at Galbraith, says: “We’ve witnessed buyer confidence improving in the market due to falling interest and mortgage rates. Notably, first-time buyers are helping to stimulate activity with funding in place and no reliance on a prior sale.”
And Matt Thompson, Head of Residential Sales at Chestertons, adds that the market in London had seen a post-Easter bounce.
He says: “Sellers remained motivated and, helped by mortgage products dipping below 4%, the capital experienced a steady volume of agreed sales through May and June.”
Adam Jennings, Head of Lettings at Chestertons, also highlighs the continued supply crunch in the rental market: “Despite occasional fluctuations, demand will likely always outweigh supply.
“This summer may be the most competitive we have seen in years.”
