Moove Market Update - August 2025

@moovetok5 Things You Need to Know About the UK Property Market 🏡 1️⃣ We’re in a buyers’ market - prices have dropped for the third month in a row. 2️⃣ Sales remain strong - if the price is right, buyers are ready. 3️⃣ Rental prices are still rising, but at a slower pace. The average rent is now £1,343 per month, up 6% year-on-year. 4️⃣ The Bank of England cut the base rate, boosting mortgage affordability. 5️⃣ Fixed-rate offers haven’t shifted much, with banks pricing in uncertainty - some rates even crept up at the end of August. #PropertyUpdate #AugustUpdate #UKproperty #UKPropertyMarket #UKRentalMarket

5 Things You Need to Know About the UK Property Market Right Now

If you’ve been keeping an eye on the property market recently, you’ll know things are shifting fast. After years of soaring prices, high borrowing, and fierce competition, the balance of power has started to tip. Right now, we’re firmly in a buyer’s market. But what does that actually mean for homeowners, buyers, and renters?

We’ve pulled together the five biggest things you need to know about the current UK property market. Whether you’re planning to sell, looking to buy your first home, or simply interested in where the market’s heading, here’s the state of play.

1. House Prices Are Falling – for the Third Month in a Row

For the past few years, we’ve seen house prices climb and climb. But now, things are going the other way. The latest figures show that UK house prices have dropped for the third month in a row.

At first glance, that might sound like bad news, especially if you’re a homeowner. But the picture is a bit more balanced than that. Sales remain strong, which tells us one important thing: buyers are still out there.

The difference is that today’s buyers are more price-sensitive. With higher borrowing costs and less confidence about the future, they’re not willing to overstretch like they did during the boom years. That means if you’re selling, the key to attracting interest is realistic pricing.

Put simply: if the price is right, your property will sell. If it’s not, buyers will move on quickly, and you’ll likely be forced into a price reduction down the line.

2. Rental Growth Is Slowing Down

For landlords, the past couple of years have brought record-breaking rental growth. In many cities, demand for rental homes has massively outstripped supply, pushing rents up to levels we’ve never seen before.

But now, things are starting to cool. Rents are still increasing, but the rate of growth has slowed. The average rent across the UK now stands at £1,343 per month. That’s up 6% compared to this time last year, which is still a healthy rise, but much less aggressive than the double-digit jumps we saw not long ago.

So what’s going on? A few things:

• Affordability is stretched. Tenants can only pay so much before the market simply won’t support further hikes.
• More stock is returning. Some landlords who were waiting for the market to peak are now putting properties back up for rent.
• Economic uncertainty is biting. With cost-of-living pressures, people are more cautious about committing to higher monthly payments.

For landlords, this doesn’t mean the good times are over – far from it. But it does mean that simply hiking rents every year is no longer a given. For tenants, it’s a small sign of relief that the runaway rental market might finally be calming down.

3. The Bank of England Cut the Base Rate – But Mortgages Haven’t Got Much Cheaper

One of the biggest pieces of news this month was the Bank of England’s decision to cut the base rate. Normally, this would be celebrated as great news for anyone thinking of buying a home. Lower base rates usually translate into cheaper mortgage deals, making monthly repayments more affordable.

But here’s the catch: lenders haven’t passed much of this saving on. Fixed-rate mortgage offers haven’t shifted much at all. In fact, towards the end of August, some lenders even started to increase their rates again.

Why? Because banks had already priced in the expected base rate cuts earlier in the year. On top of that, there’s still a lot of uncertainty in the economy, which makes lenders cautious about offering cheaper deals.

The bottom line: while the Bank of England’s move is a step in the right direction, buyers shouldn’t expect mortgages to suddenly become a bargain overnight. Affordability is improving slightly, but it’s still tougher than it was during the ultra-low interest rate era.

4. Market Optimism Has Taken a Hit

Back in the spring, there was cautious optimism that the property market might surprise us all and bounce back strongly this year. But as summer went on, that optimism started to fade.

In August, several forecasters revised their house price predictions downwards. Instead of modest growth, many now expect flat prices or even further declines by the end of the year.

Why the change in tone? Because the buyer’s market is putting a lid on prices. Buyers know they have more power than they did a year ago, so they’re negotiating harder and walking away from overpriced homes. On top of that, the uncertain economic outlook – from inflation to job security – is making people cautious about big financial commitments.

For sellers, this doesn’t mean doom and gloom. But it does mean expectations need to be realistic. Holding out for last year’s prices is unlikely to pay off in the current climate.

If you want proof that the market is cooling, just look at the asking prices. A whopping 21% of listed properties have had a price reduction recently.

That’s a big number. It tells us that lots of sellers went to market with high hopes – and were quickly forced to adjust when buyers didn’t bite.

For buyers, this is good news. It means there are opportunities out there, especially if you’re prepared to negotiate. For sellers, it’s another reminder that pricing strategy is everything right now.

If you pitch your home at the right level from the start, you’re more likely to attract interest, secure viewings, and get an offer you’re happy with. Overpricing only delays the process and can leave you chasing the market down.

What Does All This Mean for You?

So, what’s the takeaway from all of this?

• If you’re selling: Price realistically. Don’t expect last year’s numbers, but remember there are still plenty of buyers ready to move if the deal makes sense.
• If you’re buying: You’re in a strong position. Take your time, negotiate hard, and don’t overstretch yourself.
• If you’re renting: Rents are still rising, but more slowly. There may be less upward pressure in the months ahead.
• If you’re a landlord: The market is still solid, but tenants are reaching their limits. Keeping good tenants at a fair rent may be wiser than chasing unsustainable increases.

Final Thoughts

The UK property market is going through a period of adjustment. After years of rapid growth, things are cooling. Prices are falling, rents are stabilising, and forecasts are being revised. For the first time in a long while, buyers have the upper hand.

That doesn’t mean the market is in freefall – far from it. Strong sales volumes show there’s still plenty of demand. But it does mean that the days of easy selling and endless growth are behind us, at least for now.

Whether you’re buying, selling, or renting, the key is to stay informed, stay flexible, and be realistic. The property market is always changing, and those who adapt quickest tend to come out ahead.