UK sellers offer £16,000 discount on average to secure house sale
The UK housing market is experiencing its most active May since the pandemic boom of 2021, amid improved mortgage affordability and a surge in supply, according to Zoopla.
However, while buyer interest has returned, sellers are being forced to temper their expectations. The average home is currently being sold for £16,000 below the asking price, a discount of around 3%.
Changes in how mortgage affordability is assessed are fuelling buyers' return, with purchasers now able to borrow up to 20% more than they could earlier in the year. This has helped counter the effect of higher interest rates, which caused a fall in transactions through 2022 and 2023 when mortgage rates briefly hit 6%.
Sarah Coles, a columnist at Yahoo Finance UK and head of personal finance at Hargreaves Lansdown, said: 'There are now plenty of [mortgage] deals priced at under 4%, which opens up affordability for so many more buyers.'
Average house prices have risen 1.6% over the past 12 months to £268,250 — an increase of £4,330. Despite growing demand, price growth remains modest by historical standards, amid the lingering impact of inflation on household finances.
Read more: Lenders push under 4% deals but mortgages set to rise amid inflation jump
The most substantial gains are being seen in the North West of England, where employment growth and relative affordability is driving price rises. Blackburn leads with annual price growth of 5.8%, followed by Wigan (4.4%), Birkenhead (4.1%), and Liverpool (3%). Manchester posted a 2.5% increase.
Martin Bennett, owner of Crown Estates and Letting Agents in Blackburn, said: 'Business is booming, with increased demand for properties both at the lower and top end of the market. This is reflected in house prices, with an entry-level property now averaging £75,000, up from around £50,000 two years ago.
'From my experience, properties that are priced correctly are going under offer within two weeks of being listed. It's not uncommon to have 10 or more viewings on the first day.'
Scotland is also outperforming the national average, with prices up 2.9%, although Aberdeen remains an outlier with a 1.4% annual decline amid weaker economic conditions tied to the oil and gas sector.
By contrast, southern regions are seeing an increase in supply and relatively subdued price growth. The number of homes for sale has risen 21% in the South West, 17% in London, and 15% in the South East. Price growth across these areas remains below 1%, with affordability concerns also limiting further gains.
According to the latest Zoopla House Price Index, the number of sales agreed in May is at its highest level in four years, on the back of a 13% year-on-year increase in homes listed for sale.
Read more: Odds of more Bank of England interest rate cuts fall as food inflation rises
"More homes for sale means more buyers looking to move home,' said Richard Donnell, executive director at Zoopla. 'This, coupled with more attractive mortgage deals and changes to how lenders assess affordability, is supporting an increase in the number of sales being agreed.
'Sellers and buyers need to adopt different tactics based on where they live across the UK; however, all sellers need to keep their feet on the ground and be realistic on pricing expectations."
Zoopla forecasts continued momentum in sales in the second half of 2025, with national home values expected to end the year around 2% higher than they began.
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