Local Property Market Update: May 2025

May 2025 saw some interesting trends emerging in our local property market, with signs that confidence is improving and momentum is building. One of the key takeaways from the latest data is the 12% increase in property sales agreed compared with May 2024. This is a clear indication that demand for local homes remains strong, particularly as mortgage affordability improves and buyers feel more confident about making a move.

One of the driving forces behind this uplift is the increased borrowing power for those using a mortgage. Thanks to changes in affordability testing, some buyers can now borrow up to 20% more than they could this time last year, which is opening the market up to a wider range of purchasers. Mortgage approvals for home purchases have been steadily rising since August 2024, and we’re now seeing that translate into more agreed sales and stronger activity across the board.

There’s also more choice for buyers. Nationally, there are 13% more homes for sale than a year ago, which is giving purchasers a wider selection and encouraging more movement. However, more stock also means sellers need to think carefully about pricing. With more homes to choose from, buyers are weighing up value and condition, so setting a competitive and realistic asking price is more important than ever.

In the North East, house prices have seen a 2.2% increase over the past year. This modest but healthy rise reflects the balance between demand, available stock, and mortgage conditions. While we’re not seeing runaway growth, values are holding firm, and that’s a reassuring sign for both buyers and sellers.

Looking ahead, competition in the mortgage market and less restrictive lending criteria are likely to keep supporting buyer demand through the second half of the year. We expect to see continued improvement in sales volumes and the potential for modest price gains in areas where demand remains strong.

If you’re thinking of making a move this year, it’s a good time to have a conversation. The right preparation, realistic pricing, and sound advice can make all the difference in today’s market.

Aidan Donnelly, MNAEA

Source: Zoopla's HPI, May 2025