With resilience still shining through, what hope is there for the summer property market?

When the Middle East conflict first began, there were immediate concerns that the property market would be negatively impacted just as it had started to recover from the long wait for last year’s autumn budget. 
The immediate impact on the market was intense as energy prices soared, doubt returned and mortgage rates rose again, from less than 4% in January to a peak of almost 5% in April. It was assumed this would have a devastating impact on the housing market and buyer confidence. 
Yet month after month housing price indices and other measures have continued to show the sector’s resilience and that those who want to move are continuing with their plans regardless. Now, as summer truly heats up, it looks like buyer demand is continuing to shine through.  

House price measures are encouraging 
One of the most recently published measures, the respected Lloyds House Price Index (formerly known as the Halifax HPI) showed that house prices rose for the first time in four months in June, up by 0.2% for the month and by 0.6% year on year 
Others are more encouraging, with Nationwide’s house price index showing that UK annual house price growth picked up to 2.2% in June, up from 1.7% in May.

Demand is there 
Demand hasn’t been unaffected. Zoopla’s most recent house price index showed that, across June, sales agreed were about 7% below last year and buyer enquiries down around 15%. However, 2025 had seen a first-quarter peak in activity and then recovery as buyers and sellers had navigated stamp duty tax threshold changes. Caution in the current climate is inevitable.  

Mortgage rates have eased
Affordability does remain stretched for some buyers, but mortgage rates have eased from their recent highs and that is encouraging news for those who have been waiting for them to drop again before considering a move. It’s hoped that more rates will follow, especially since fears of immediate interest rate rises have eased.

The future 
In its house price index release, Lloyds said it expected the housing market to “continue moving at a measured pace”, with demand supported by lower borrowing costs, although inflation and household confidence also need to improve. 
That recovery could happen if the energy shock continues to subside, political uncertainty and future tax and spending decisions are clarified and the Bank of England decides to continue holding interest rates.
Meanwhile, for those considering selling or buying, pricing that reflects the current state of the market is essential to achieving a sale. Without it more than a third of new listings that come to market are failing to sell, according to Rightmove. Housing stock availability is high, which means that choice is broad. Capturing buyer attention is crucial.
For more information on how we can assist you on your sales journey, please contact one of our branches in Seaford, Peacehaven, and Newhaven areas. If you would like further guidance on any part of the sales process, get in touch with us today.