A Tale of Two Markets: The Unexpected Resilience of the UK Housing Market

The UK housing market is currently experiencing a fascinating paradox. On one hand, a constant stream of government speculation regarding possible changes to stamp duty, capital gains tax and even National Insurance. While some of these ideas could benefit the housing market long term, the constant stream of leaks has undoubtedly caused some uncertainty among buyers and sellers. That said, the latest figures continue to show a surprisingly resilient market.

According to Rightmove, sales agreed this year are already 8% higher than the same period last year. HMRC also recorded its busiest month for property transactions in two years this July, while mortgage approvals rose to 65,400 – unusual for a time of year when activity typically dips.

In short, the market seems healthier than many expected. Let’s take a closer look at what’s happening on the ground.

The Sales Market: National Trends

Recent figures from leading property portals like Rightmove and official data from HMRC show that the market is pushing forward with vigor across the country.

• Increased Transactions: This year, the number of sales agreed upon is already 8% higher than the same period last year. July saw the busiest month for property transactions in two years, and mortgage approvals rose to 65,400, a figure that is particularly strong for a typically quiet summer month.
• Signs of a Healthy Market: The average number of sales per branch has edged up, and a significant one in ten agreed sales achieved or exceeded the asking price—a figure double that of the previous month. This highlights the importance of realistic pricing and working with a knowledgeable estate agent to ensure your property is priced correctly to attract serious buyers and achieve a swift sale.
• Looking to the Future: A rise in market appraisals suggests that a healthy flow of new listings is coming to the market this autumn, which is great news for prospective buyers. Viewings per property have also remained steady, a positive sign of sustained buyer interest, even with the distractions of summer holidays.

The Rental Market: National Trends

In stark contrast to the sales market, the national rental sector continues to face significant challenges. Demand is far outstripping supply, leading to highly competitive conditions for tenants across the country.

• Intense Competition: The imbalance between supply and demand continues to put pressure on rental prices. In August, average private rents across the UK were up 5.7% annually, a slight slowdown in growth from previous months but still a significant rise. This is a direct result of the number of registered tenants continuing to far outweigh the homes available.
• A Persistent Imbalance: While the supply of rental properties has seen some modest improvement, it remains well below pre-pandemic levels. This persistent bottleneck is the primary driver of rising rents and intense competition. Without policies that encourage and support landlords to remain in the market, this supply-demand issue is likely to worsen.

The Norwich Housing Market: A Local Perspective

While the national picture is positive, what's happening on the ground in our local area of Norwich?

• Stable Property Prices: The average house price in Norwich in July 2025 was approximately £232,000. This figure has remained largely stable over the past year, in contrast to the East of England region where average prices rose by over 2%.
• High Demand for Terraced Homes: The data shows that most properties sold in Norwich over the past year were terraced houses, and the average price for these homes is around £252,000. This indicates a strong market for first-time buyers and families.
• The Rental Challenge: The rental market in Norwich is even more competitive than the national average. Average private rents in the city have seen a significant annual increase of over 9%, a higher rate than the wider East of England region. This is a direct result of demand far outstripping supply.
• Tenant Behaviour: We are observing a significant trend where tenants in existing rental properties with a competitive rent are choosing to stay put. This is due to the fact that a change in property would result in a significant increase in their rental price, making a move financially unviable. As a result, properties that were initially priced at the higher end of the market (above £1000 pcm) have been attracting much less interest and have required rent reductions to remain competitive.
• What this Means for You: For sellers in Norwich, the market is in a stable position with clear demand, especially for terraced properties. For buyers, the market is competitive, and being well-prepared with your finances is crucial. And for tenants, the intense competition means acting quickly on new listings and having all your documentation ready is more important than ever.

As a leading Estate agent Norwich, we at Arlington Park are closely monitoring all developments to provide our clients with the most up-to-date and expert advice. The market is watching the Budget closely, and we can only hope the current uncertainty doesn't put a brake on the positive momentum we're seeing both nationally and right here in Norwich.