As we move well into summer 2025, the UK property market shows increasing signs of stabilisation — with modest growth, renewed buyer activity, and a cautiously optimistic outlook. Buyer demand is also picking up again following the impact of the April stamp duty changes.
Latest reports from major lenders show UK house prices remained steady in June. The average UK property price currently sits between £296,000 and £297,000, marginally lower than earlier in the year. Annual house price inflation is estimated between 2.1% and 2.5%, with modest month-on-month variations.
More affordable markets — typically those with average values under £200,000 or £250,000 — are continuing to outperform more expensive areas. These lower-cost regions are seeing annual growth of 2.7% to 3.5%, while very high-value areas (those over £500,000) are seeing minimal or even negative price changes.
The luxury and country house market is also showing signs of movement. Sales of high-end country homes have increased by around 7% year-on-year, although prices in that segment have dropped slightly over recent months.
Forecasts suggest UK-wide house price growth of between 3.5% and 4% through the remainder of 2025, assuming economic confidence holds and mortgage rates remain relatively stable.
Overall, the UK housing market this summer is shaping up to be a buyer-friendly environment: with plenty of supply, moderate discounting, and strong buyer activity — particularly in northern and more affordable regions. Sellers are often accepting offers around 3% below asking price, and sales pipelines are the healthiest they’ve been in several years.
Nottingham Property Market
Here in Nottingham, the local property market reflects many of the broader national trends but with an even more optimistic tone. At Benwell Daykin, we’ve seen sustained buyer interest, competitive pricing, and a clear sense of momentum throughout the county and in Ruddington.
Latest Prices and Trends
The average house price in Nottingham as of April 2025 stands at approximately £192,000, marking a 4.8% increase compared to the same time last year. This rate of growth outpaces the wider East Midlands, which saw an average rise of 3.8%, and sits well above the national growth average.
Terraced houses in Nottingham have seen the strongest growth, rising by 5.6% year-on-year. Semi-detached and detached homes have both experienced gains of around 3.1%, while flats and maisonettes remain the most affordable segment, with average prices around £133,000.
For first-time buyers, the average property purchase is now around £177,000, a 5.2% increase from the previous year. Owner-movers, meanwhile, are typically paying closer to £229,000.
The private rental market in Nottingham continues to thrive. Average rents have risen to £976 per month — a 7.3% increase year-on-year. One-bed properties rent for around £707 per month, three-bed homes for over £1,000, and detached rentals for approximately £1,268 per month.
What’s Driving the Nottingham Market?
Affordability and Demand
Nottingham remains one of the most affordable major cities in the UK. This affordability is attracting a wide range of buyers, from first-timers to families and investors. Areas such as Carlton and Sneinton are particularly popular due to strong rental yields and good transport links.Regional Growth Prospects
Nottingham is forecast to continue outperforming much of the East Midlands. Local agents and analysts expect annual growth of 3% or more for the foreseeable future, driven by ongoing demand and constrained housing supply.Regeneration and Infrastructure
Regeneration projects, including the ongoing transformation of the Broadmarsh area, rumours of improved tram networks and new housing developments, are bolstering the city’s appeal. These improvements are helping to raise the profile of central Nottingham and nearby areas.Post-Stamp Duty Adjustment
Following a surge in activity earlier this year due to stamp duty changes, the market has now settled into a more stable rhythm. Correctly priced properties continue to sell quickly, while overpriced listings are seeing longer time on the market.
Summer 2025 Snapshot
Average Nottingham property prices are in the region of £192,000 to £195,000.
Annual growth is around 4–5%, particularly strong in terraced and semi-detached homes.
Buyers have more choice and are often able to negotiate discounts of 2–3%.
Investor hotspots include Carlton, Beeston and Sneinton — areas with strong rental demand and capital growth potential.
For Sellers
If you’re considering selling your Nottingham home, pricing is key. At Benwell Daykin, we recommend setting realistic asking prices based on recent comparable sales. Well-presented properties at the right price are still generating strong interest, and many are receiving multiple viewings within days of listing.
For Buyers and Investors
Now is a promising time to buy in Nottingham. First-time buyers are returning to the market, and investors are capitalising on strong rental yields of 5–6% in certain areas. With a stable price environment and strong long-term prospects, Nottingham continues to offer excellent value for money.
In Summary
The UK housing market in summer 2025 is steady, with moderate buyer interest, ample supply, and flat to slightly negative price movement overall.
Regional and affordable markets, particularly in the Midlands and North, are outperforming more expensive southern areas.
Nottingham stands out with nearly 5% annual growth, strong rental demand, and increasing investment in infrastructure and regeneration.
It’s a buyers’ market in many respects, but sensibly priced properties are selling well.
Thinking of selling or just curious what your property is worth?
Contact Benwell Daykin Estate Agents today for a free, no-obligation valuation.
Call us on 0115 990 2007 — we’re here to help you make the most of your move.