Why Is the property market flying high right now?

18 Aug 2020

by Shabari

Earlier this month saw the UK record its highest temperature in 17 years. And it’s not just the weather that’s been red-hot. The property market is going through a blisteringly busy period.

The UK property market has remained resilient and continues to see high demand despite economic fluctuations. With house prices and rental values rising, many are wondering why the market remains so competitive. The surge in activity can be attributed to a combination of evolving buyer preferences, pent-up demand, and government policies. In this blog, we explore the key reasons behind the ongoing boom and what to expect in the coming months.

The 3D Effect: Desire, Demand, and Duty

The rapid movement in the property market can largely be explained by what we call the ‘3D Effect’—Desire, Demand, and Duty.

Desire for Better Living Spaces

One of the lasting impacts of the pandemic is that people are still re-evaluating their living spaces. Remote and hybrid working have become permanent fixtures in many industries, pushing individuals and families to seek homes with more space, home offices, and access to green areas. The demand for suburban and countryside properties remains strong, as buyers prioritize lifestyle quality over proximity to city centers.

Pent-Up Demand Driving Competition

The housing market slowed down in recent years due to economic uncertainty, mortgage rate hikes, and the cost-of-living crisis. However, as conditions improve and mortgage rates begin to stabilize, many buyers who delayed their purchases are now re-entering the market. This has created a surge in demand, leading to competitive bidding and pushing property prices higher.

Stamp Duty Adjustments and Market Implications

The UK government’s approach to Stamp Duty Land Tax (SDLT) has played a significant role in the market’s momentum. While the tax holiday introduced in previous years has ended, new adjustments to tax thresholds in 2025 have influenced buyer behavior. First-time buyers are still benefiting from exemptions on lower-priced properties, while investors and second-home buyers face higher rates. These changes have created urgency among buyers, particularly in high-value areas.

House Price Growth: Record Highs and What’s Next

Recent data shows that UK house prices have continued to rise, although at a more moderate pace compared to the post-pandemic surge. As of early 2025:

• The average UK house price is approximately £290,000, marking a 5% annual increase.
• London remains the most expensive region, but Northern England and Wales have seen the highest growth rates.
• Some analysts predict a slight cooling in price growth due to affordability concerns and economic stabilization.

While there are signs of a slowdown, experts suggest that house prices are unlikely to decline significantly in the near future, as demand still outweighs supply.

The Rental Market Boom

Rising house prices and mortgage costs have made homeownership less accessible for many, pushing more people into the rental market. As a result:

• Rental prices have surged across all UK regions, with some areas experiencing double-digit growth.
• Demand for rental properties remains high due to population growth and limited housing stock.
• Landlords are facing increasing regulations, leading some to sell their properties, further reducing available rental supply.

This imbalance between supply and demand has created a landlord’s market, with tenants competing for limited rental properties.

Future Outlook: What Buyers and Sellers Should Expect

Looking ahead, property experts anticipate:

• A slight slowdown in house price growth, but no significant crash.
• Interest rates stabilizing, making mortgages more accessible.
• A continued rise in rental prices, especially in urban and commuter areas.
• Government interventions that may impact affordability and housing availability.

For buyers, now could be a good time to secure a home before further price increases. Sellers can take advantage of strong demand, while landlords may find opportunities in a high-yield rental market.

Conclusion & Next Steps

The UK property market remains strong in 2025, driven by lifestyle changes, buyer demand, and government policies. While house price growth may slow, the market continues to favor sellers and landlords.

If you’re considering buying, selling, or investing, now is the time to explore your options. Get in touch with our expert estate agents team to discuss your property goals and make informed decisions.

At Duncan Yeardley, we’re definitely seeing a surge in the number of buyers seeking property in the Bracknell area.

If you are interested in having a chat about what this could mean to you, please do get in touch.