A more balanced market emerges as supply grows and house prices steady
As we head into the heart of spring, the property market across Surrey and Hampshire is seeing a shift that’s bringing more choice for buyers and greater realism from sellers. While UK house prices have reached a record high in May—just shy of £380,000—price growth is slowing, buyer demand is softening, and market conditions are becoming more balanced than we’ve seen in recent years.
A Market of More Choice
The number of homes for sale is at its highest for over a decade, with 14–15% more listings than this time last year. Across Bourne branches, this means more options for buyers and a wider spread of realistic pricing, particularly important in our local markets where detached and semi-detached homes remain in high demand.
Sellers should note: more competition means buyers are comparing closely, and homes that are priced accurately are moving fastest. Overpricing, even slightly, could mean your property gets overlooked.
House Price Trends – Up, But Slower
- The average UK house price stands at £268,000, up 1.6% from a year ago.
- Asking prices in May hit a new high of £379,517, but the monthly increase of 0.6% is the smallest May rise since 2016.
- Regionally, the south of England is seeing sub-1% house price growth, a reflection of tighter affordability and the end of stamp duty relief dampening momentum.
Locally in Surrey and Hampshire, we’re seeing that while prices are holding up well, the pace of growth has cooled—good news for buyers, and a sign for sellers to stay grounded in pricing strategy.
Sales Volumes Still Climbing
Despite the cooling in demand since the end of stamp duty relief, sales agreed are 5–6% higher than this time last year. That’s driven by realistic pricing and the growing pool of motivated sellers who are also looking to buy.
Buyers have become more selective, but they’re still making strong offers on well-presented and sensibly priced properties—especially family homes in catchment areas and character properties that are always in high demand across our region.
Mortgage Market Boosting Buyer Confidence
The mortgage market is playing a vital role in keeping activity moving:
- Two-year fixed rates are now available from 3.72%, down from 4.75% a year ago.
- A possible second Bank of England base rate cut is on the horizon, which could ease borrowing further.
- Lenders are beginning to relax mortgage stress testing, meaning some buyers could see their affordability improve by up to 20%, allowing more people to move this year than previously expected.
Lettings Market Overview – May 2025
The rental market across Surrey and Hampshire remains highly competitive, with demand still outstripping supply in many areas.
- Rents continue to hold firm, with slight upward pressure in commuter towns and desirable school catchments.
- Tenant preferences have shifted post-pandemic, with increased demand for pet-friendly properties, homes with outdoor space, and flexible layouts that accommodate remote working.
- Landlords who invest in property presentation, offer flexible terms, or consider allowing pets are seeing faster lets and longer tenancies.
- Energy efficiency is also playing a bigger role in tenant decisions, with properties rated EPC C or above receiving more interest.
Now is an ideal time for landlords to review their portfolio and consider their next move. With tenant demand remaining high and lending criteria beginning to ease, there are opportunities to invest and achieve attractive yields.
What This Means for You
Whether you’re buying, selling, letting or just watching the market, here are a few takeaways from May:
- For sellers: Realism is key. With more properties available, buyers are taking their time and comparing carefully. The right price—supported by good marketing—will help your home stand out.
- For buyers: There’s more to choose from than we’ve seen in years. With mortgage rates easing and affordability improving, now is a great time to re-engage with the market—especially before any summer surge in activity.
- For landlords: Rents are strong and tenant demand is high. If you’re considering letting out your property—or expanding your portfolio—now is a great time to act. Speak with our lettings team for expert, up-to-date advice.
- For movers: With both sales and listings on the rise, now is a strong window to act. You’ll find more choice on your next purchase while still enjoying solid buyer demand if you’re selling.
Thinking of making a move this summer?
The team at Bourne Estate Agents is here to help you navigate this evolving market with honest advice, expert valuations, and tailored strategies that get results—whether you’re selling, buying, or letting.
Get in touch with your local Bourne office today to find out how much your home is worth—and how to make the most of this market.
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