From Boom to Balance: Is the UK Property Market Cooling Off?

After years of extraordinary price growth and frenzied buyer activity, the UK property market is showing clear signs of a fundamental shift. The days of pandemic-era bidding wars and rapid price increases are giving way to a more measured, balanced marketplace where buyers have regained the upper hand. But is this cooling necessarily negative, or are we witnessing a healthy return to market equilibrium? 

For those considering a move, working with experienced estate agents in Lincolnshire or your local area has never been more important in navigating these changing conditions. 

The Numbers Tell the Story 

Latest data from Rightmove paints a picture of a market in transition. Despite house prices hitting a new record of £379,517 in May 2025, this represents the smallest increase in asking prices for homes coming on to the market that we’ve seen at this time of year since 2016. This contradiction—record prices alongside minimal growth—perfectly encapsulates the current market paradox. 

Zoopla’s data reinforces this cooling narrative. UK house prices increased by 1.6% in the year to March 2025, slowing from an annual growth rate of 1.9% in December 2024. While growth continues, momentum is clearly diminishing. 

Supply Surge: The Great Rebalancing 

Perhaps the most significant shift is the dramatic increase in property supply. Rightmove reports that the number of new properties coming to market is now 14% ahead of this time last year, creating a decade-high level of choice for buyers. The average estate agent office now has 35 unsold homes compared to 31 a year earlier. 

This supply surge represents a fundamental shift from the pandemic era when acute property shortages drove fierce competition. Today’s buyers enjoy options that were unavailable during the market frenzy. As Rightmove’s property expert observes: “In the current market, buyers may well have several similar homes to choose from in their area, and a home which appears over-priced compared to the competition may not get a second look.” 

Buyer Behaviour: From Desperate to Discerning 

Changing supply dynamics have fundamentally altered buyer behaviour. New home-buyer demand slowed to +4% compared to last year, with new sellers coming to market up by +14%. This divergence marks the first time this year that balance has tipped decisively towards buyers. 

The shift is evident in transaction patterns. Rightmove data shows sales agreed in April were 5% higher than a year ago, despite buyer demand dipping by 4%. This suggests whilst fewer people are actively searching, those who are remain committed when they find the right property at the right price. 

Time on Market: A New Reality 

One of the clearest cooling indicators is extended selling times. Rightmove reports sellers currently take an average of 59 days to secure a buyer, with some periods during 2025 extending to 77 days—the longest over the past 12 months. 

This contrasts starkly with the pandemic era when well-priced properties sold within days. The current environment requires sellers to be more patient and strategic, working closely with agents to ensure competitive pricing. 

Price Sensitivity: The New Dynamic 

Buyers have become notably more price-sensitive. Zoopla data reveals home buyers were paying on average 3.6% below asking price at the end of 2024, compared with 3.2% during summer. This increased negotiation power reflects the fundamental market shift. 

The cooling extends to rentals, where more landlords are reducing advertised rents to find tenants. A quarter of rental properties are seeing price reductions, the most at this time of year since 2018. 

Regional Variations: Uneven Cooling 

The cooling isn’t uniform across the UK. Northern regions of England, Scotland and the East Midlands continue registering fastest growth in agreed sales, whilst southern regions experience slower growth due to affordability constraints. 

This regional divergence suggests cooling is most pronounced where affordability has been stretched, while more affordable regions maintain momentum driven by better value propositions. 

Mortgage Market: Mixed Signals 

The mortgage market presents complexity. Positively, the lowest available two-year fixed rate is now 3.72%, down from 4.75% a year ago. More mortgage products with sub-4% rates are encouraging buyers to make offers. 

However, many homeowners face different realities. Those who secured ultra-low pandemic rates now face significantly higher remortgaging costs. Someone with a 2020 five-year fix at 2.55% would currently face around 4.89% for renewal. 

The Stamp Duty Effect 

Part of current cooling stems from April’s stamp duty changes. The market surged in Q1 2025 as buyers rushed to complete before higher charges. This artificial acceleration was inevitably followed by reduced activity as pent-up demand was satisfied. 

Stamp duty changes continue influencing dynamics, with first-time buyers now paying tax on properties over £300,000 rather than £425,000, creating particular cooling in affected segments. 

Estate Agent Adaptation 

The cooling market has prompted strategy shifts. Rightmove reports a 32% increase in sellers switching estate agents to find buyers, suggesting sellers are becoming more demanding of marketing efforts and pricing advice. 

Professional agents are emphasising realistic pricing from the outset, enhanced marketing strategies, and sophisticated local market analysis. Simply listing and waiting for offers is no longer viable. 

Looking Ahead: Balanced Growth 

Market experts suggest continued modest growth rather than dramatic cooling. Zoopla predicts the housing market is on track for 5% more sales and 2% price inflation over 2025. Rightmove maintains its 4% price growth forecast, though driven more by limited supply than surging demand. 

The market’s trajectory will depend on interest rates, economic stability, and continued supply-demand rebalancing. Further moderate cooling seems likely as the market adjusts to post-pandemic norms. 

Conclusion: Healthy Correction 

The current UK property market cooling represents a return to sustainable dynamics after years of exceptional growth. While sellers face challenges requiring realistic pricing and patient marketing, buyers benefit from increased choice and improved negotiating power. 

This rebalancing should be viewed as healthy correction rather than concerning decline. The market remains fundamentally robust, supported by strong employment, limited supply in many areas, and improving mortgage affordability. 

For those looking to buy or sell, success depends on understanding and adapting to new market realities. Sellers must price competitively and market effectively, whilst buyers can be more selective and negotiate assertively. The boom may be over, but the market remains active for those approaching it with realistic expectations and professional guidance.