Changes in the mortgage sector have impacted the real estate market of Great Britain

• Housing demand increased by 11% in July 2025.
• The average rent in Britain reached a record £1,365 per month.
• Forecasts for housing prices have been lowered to 1% in 2025.

The real estate market in Great Britain demonstrates activity, not succumbing to the traditional summer decline. According to information from Zoopla, demand for housing in July increased by 11% compared to last year, which led to an 8% increase in agreements.

Despite this activity, forecasts regarding the increase in housing prices have been lowered. The average price of houses in June was £268,400, which is 1.3% higher than in 2024. Specifically, in Northern Ireland, prices increased by 6.1%, while in London, a decrease of up to -5% is observed in some areas.

Changes in the rules for assessing mortgage affordability, implemented after clarifications from the Financial Regulator, allowed lenders to offer larger loans, which increased their purchasing power. Current mortgage rates remain stable, which also encourages activity in the market.

At the same time, spending on mortgages in England and Northern Ireland after the end of the temporary ceilings in April 2025 has led to buyers considering these expenses in their proposals.

The average rent in Britain, according to data from Rightmove, reached a record £1,365 per month, which is £400 more than five years ago. However, the increase in rental rates is slowing down, as the balance between demand and supply improves.

Experts indicate that the rental market requires time to return to pre-pandemic levels, as the number of available properties for rent is 15% higher than last year's figures, but still 29% lower than in 2019.

Tags: Europe/Economy