Essentially Mortgages Q3 Summer 2025

As summer gets underway, the housing and mortgage sectors are showing a blend of notable milestones and changing dynamics, bringing a mix of opportunities and obstacles for buyers and movers.

House prices reach record levels In May, the average asking price for a property on the market reached a new peak of just under £380,0001. While prices are at an all-time high, the annual growth rate appears to be slowing, with many experts indicating that conditions now favour buyers more than sellers.

Moving costs climb higher

Moving home has become significantly more expensive across the UK, with the average cost rising by 13% over the past year2 . In England, this is partly driven by adjustments to Stamp Duty Land Tax (SDLT) from 1 April. Factoring in upfront expenses such as the deposit, Stamp Duty, legal fees, mortgage charges and removals, estimates 3 place the average cost of moving in England at nearly £52,000.

Comparatively, the average is £34,429 in Wales (where Land Transaction Tax applies), £32,172 in Scotland (under the Land and Buildings Transaction Tax), and £31,353 in Northern Ireland. Across the board, moving or upgrading has become a more expensive undertaking for many families.

Best first-time buyer affordabilityin a decade

Despite rising prices and higher upfront costs, there is some encouraging news: affordability for first-time buyers is now at its strongest point in ten years 4. This is thanks to a mix of wage growth, stabilising home values and more accessible mortgage products.

Rise in low and no-deposit mortgages

Lenders are increasingly accommodating buyers with smaller savings. The availability of low-deposit mortgages has reached its highest level in 17 years 5 , reflecting a more flexible lending environment. Additionally, 100% mortgages requiring no deposit have made a cautious comeback.

Looking ahead

Although record-high asking prices and steeper moving costs present clear challenges, improved first-time buyer affordability and more inclusive mortgage options are creating new possibilities. As the summer progresses, the market appears to be adjusting, potentially setting the stage for a more balanced and accessible housing landscape.