UK Premium Property Market Update July 2025

Before that, I’ll cover what’s happening across the wider market with mortgage approvals and transactions, because movement in the broader market flows through and shapes the premium sector as well.

Mortgage approvals are often a leading indicator for future transaction volumes and continue to show a steady, upward trend, suggesting growing confidence and sustained buyer appetite.

Net mortgage approvals for house purchases increased by 900 to 64,200 in June and approvals for remortgaging also increased by 200, to 41,800 in June. 

This marked the highest number of approvals for remortgaging since October 2022 (50,000).

Mortgage approvals for house purchases were 1.90% up month-on-month, 7% year-on-year, 2.60% on the 10-year June average, and only 0.81% down on the 12-month average. 

These figures were also broadly in line with the pre-pandemic average, despite the changed interest rate environment and clear evidence that there is plenty of activity in the market right now.

This tells us that activity is not just holding up, it’s quietly building, despite a higher interest rate environment than we saw during the pandemic boom.

Buyer confidence is returning with more people securing mortgage approvals now than they were a year ago, and that’s a powerful signal that the market is regaining its footing.

Importantly, this level of activity was happening before the most recent cut to the base rate in August and means any further drop in interest rates later this year could further unlock demand.

This is a clear sign that buyers aren’t waiting on the sidelines anymore and they’re getting organised, securing approvals, and ready to move as long as the price is right.

The latest data on UK residential property transactions presents a mixed, but broadly positive picture.

Transactions rose 1.33% year-on-year, a modest, but meaningful improvement on June 2024.

Even more encouragingly, transactions were up 14.80% compared to May 2025, suggesting growing market momentum in early summer likely fuelled by increased buyer activity, improving mortgage affordability, and greater market confidence.

However, Transactions remain 5.08% below the 12-month average, 10.01% below the 10-year June average and 15.23% below the financial year (April–June) decade average.

This tells us that while activity is improving, we're still not fully back to pre-pandemic norms, a reflection of lingering affordability pressures, regional disparities, and some buyer caution amid inflation and interest rate uncertainty.

The market is still in recovery mode, not a boom and we're seeing motivated buyers and sellers transacting, but volumes remain below historic levels.

Now that we’ve covered the bigger picture, here’s the key stats for the premium market.

●      A record number of properties for sale in the premium market, this has gone up seven months in succession and now the third month in a row that they have been above 100,000.

●      This was the best July for new listings and was 6.50% up year-on-year, plus this was the busiest month for sellers returning to the market since January. 

●      The best July for sales agreed since 2022, a 12.43% increase on last year and the third month in a row that sales agreed has exceeded 9,000.

●      Withdrawals were at the highest number since November 2024 and were 25% up both month-on-month and year-on-year. 

●      Price changes were 28% up year-on-year and exceeded 10,000 for the third month in a row, but were 8.60% down on the previous month.

●      Fall-throughs were up both month-on-month and year-on-year, plus reached their highest level since October 2022. 

The best July for new listings and the busiest month for returning sellers since January suggest renewed optimism. 

Seller confidence is returning and this is positive news as it signals active market conditions, but with this brings extra competition and also increases the need to differentiate, as more similar homes hit the market. 

Supply is building fast, thus creating more choice for buyers, competition for sellers, and tipping the balance of power away from sellers towards buyers.

Seven consecutive months of stock growth, with over 100,000 properties now on the market for the third month running, means premium buyers have more to choose from.

This will put continued pressure on sellers to stand out with more competitive pricing, better presentation, and highly targeted marketing.

Demand is holding up though with three straight months of sales agreed above 9,000 and a 12.43% year-on-year increase versus July 2024.

This shows that buyers at the top end of the market are still prepared to transact and this means that despite broader economic uncertainty, well-positioned properties are still attracting offers.

Withdrawals are at their highest level since November 2024 and are both up month-on-on-month and year-on-year, showing frustration and or over-optimism from sellers.

This suggests some sellers, possibly those unwilling to adjust their pricing are leaving the market rather than negotiating.

In the premium sector, this can reflect a “won’t sell for less” mindset, even in a more competitive market and is more common at the top end because many owners aren’t under financial pressure to move; they’d rather withdraw the property and wait for “their price” than adjust to meet current buyer expectations. 

However, there are still plenty of sellers adjusting their pricing expectations with 10,000 reductions recorded for the third month in a row and a 28% increase year-on-year, but there are some signs of moderation with a 8.60% drop on the previous month. 

These figures point to more active price management by sellers and estate agents in response to increased competition for the more realistic, motivated and serious sellers.

Fall-throughs continue to rise and are at their highest level since the mini-budget in the autumn 2022 when interest rates spiked following the record lows of the Covid period.

In the premium market, higher fall-through rates can be particularly disruptive because transactions often involve larger deposits and more complex finance arrangements which can be significantly impacted by wider economic conditions. 

They will also be affected by buyers lower down the chain as they often involve longer chains and with fall-throughs continuing to rise across the whole market, this will have a knock on effect to the top of the chain. 

Lastly, the longer a property takes to find a buyer, the more likely it is to have a sale collapse and this is also true of price reduced properties as well, so with properties taking longer to sell and more price reductions taking place, this is then directly affecting the number of sales collapsing. 

The premium market is active and competitive, with both supply and demand rising. 

For buyers, the combination of increased choice and steady demand means that desirable homes are still attracting strong offers and moving quickly.

However, higher withdrawals, price adjustments, and fall-throughs show that success isn’t automatic.

Sellers need realistic pricing, strong marketing, and an agent who can manage negotiations and keep deals on track.

Preparation and strategy matter more than ever. 

For sellers, pricing in line with current market realities and presenting properties at their best are critical to securing a sale. 

This month sees me continue my top tips to succeed in the premium market by sharing some fantastic advice from one of the various real estate experts I follow from across the pond.

Summer arrives and something predictable happens.

Marketing budgets get slashed.

Content calendars go dark.

Follow-up stops.

Your competition just handed you their market share.

The leads you generate today become the sales you make this winter.

The marketing you stop today shows up as missed opportunities 60-90 days from now.

What does Christmas look like if you double down right now?

That’s your choice to make.

Remember:

Speaking of summer, I’m off to Murcia for a much needed break and no doubt will be looking at the property prices when I’m over there.

Can you really say you work in the estate agency industry if you don’t do that whenever you go abroad?!

Thank you as always for reading my latest UK premium property market update and be sure to subscribe, so you don’t miss the next release in which I will be reporting on what happened to the premium property market in August.

P.S. Check out my latest overall market update on YouTube to find out all the goings on across the whole UK market throughout July. 

P.P.S. If you want to hear from some of the biggest names in the industry, have a listen to some of my latest podcast episodes on Apple and Spotify with Josh Phegan, Simon Leadbetter, and Ben Madden.