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As the UK sizzled through its third official heatwave of the summer, the property market is feeling the heat too.

Annual price growth climbed to 3.9% in May, with a 1.1% monthly jump from April. London was the only region to see a slight cool-down in prices between April and May, while the North East led the way with the largest monthly increase of 2.2%. Close behind were the North West and the East of England, both seeing rises of 2%.

After April’s figures reflected the quieter period following the stamp duty deadline, the market has bounced back strongly. Supported by four interest rate cuts since last August, it continues to show remarkable resilience.

Sources: Bank of England, Rightmove, Dataloft by PriceHubble, ONS, UK HPI, Zoopla, Halifax

Local Market Roundup

The latest land registry data for the past twelve months reported 3794 total transactions across the WR postcode area reflecting  a 9% decline compared to the previous year.

Worcester recorded 1685 transactions down 7%, while Malvern saw 514 transactions down 17%. In Droitwich transactions fell by 12% to 423 transactions.

Over the same period the average sale price across the WR region increased by 2% to  £297,042 . Houses represented 89%  of total sales, averaging £323,420  while flats making up the 11% averaged a sale price of £148,822.

Malvern’s average price rose by 4% to £311,675. Droitwich saw a 1% increase to £287,545 and Worcester’s average increased slightly by 2% to £266,394.

The increase in average sales prices over the last five years  is show below

Over the past year, the average rent for properties in Worcestershire increased to £916 per month, reflecting a 6% increase compared to the previous twelve months. Flats, which accounted for 40% of the rental market averaged £766 per month, while houses making up 60% achieved an average of £1040 per month.

In Droitwich rents climbed by 8% to an average of £876 per month with flats averaging £697 per month and houses £1035.

Malvern experienced at 10% change on the previous 12 months with average rents reaching £1078 with flats at £875 and £1217 per month for houses.

Worcester’s average rent reached £888 per month representing at 3% increase with the average rental value of £781 for flats and houses at £996 per month.

Source: Dataloft Market Rental Analysis (rental data is limited and based on achieved rents for approximately 10-15% market share, depending on location)

National Market

The average house price climbed to £268,652 in May, marking a 3.9% increase compared to last year. Despite this rise, new seller asking prices have dipped by 1.2% this month, down £4,531 to £373,709. Reflecting this shift, Rightmove has adjusted its 2025 price growth forecast from 4% to 2%, citing strong seller competition as a key factor limiting upward momentum.

Economy

The Bank of England held interest rates steady at 4.25% in its June meeting. Meanwhile, monthly GDP is estimated to have slipped by 0.1% in May 2025, following an unrevised 0.3% fall in April (ONS). Inflation also edged higher, with CPI rising to 3.6% in the 12 months to June 2025, up from 3.4% in May (ONS).

Lettings Market

For the first time in four months, average void periods shortened, dropping to 20 days in June. Rents are forecast to rise by 3-4% over 2025, with slower growth in larger cities being balanced by faster increases in more affordable markets. The average rent in June stood at £1,308, up 0.7% compared to the same time last year.

Our Lettings Manager, James Gwynne, is here to support both new and existing landlords, especially those looking to navigate the ever-evolving landscape of legislation and compliance. To help landlords stay ahead of these changes, we’re hosting a Landlord Seminar on 9th October – the perfect opportunity to gain insights, ask questions, and ensure your portfolio remains compliant and profitable.

If you’re a landlord with questions, our experienced lettings manager, James, is here to offer valuable insights and support. James has also recently released his book, Home, a comprehensive guide for current landlords and those looking to invest in property. You can purchase a copy, available in both paperback and Kindle, by clicking here.  

Community News

Podcast with Purpose!

We recently had the pleasure of welcoming Martyn Davies from Mindful Financial Planning and his sidekick, Milo the Monkey – into the studio for a powerful episode of The Just Local Podcast.

Martyn saw first-hand, as an Independent Financial Adviser, just how many adults were held back by a lack of early financial education. So, he wrote a book to help change that, giving parents and teachers a practical, confidence-boosting tool to start the money conversation early.

Now, he’s taking that mission into local Worcestershire primary schools, inspiring the next generation to understand the value of money from day one.

Catch the episode on our Spotify or YouTube channel – this one’s packed with purpose!

Market Insight

This market update draws from a range of trusted sources to provide you with clear, evidence-based insights to guide your property decisions. Our team is committed to staying updated on latest market trends and legislative changes, ensuring you have the most current and relevant information.

If you’re thinking of making a move, this update offers valuable insights to help guide your decision-making. Our expert mortgage advisors are on hand to provide personalised advice, helping you determine whether moving or remortgaging is the best option for you. We’re here to ensure you make informed choices for a seamless transition in the year ahead. For more information, click here. 

Feel free to reach out to us anytime. We’re here to assist you in making informed property decisions and navigating your property journey.

For additional insights, follow us on social media, where we share regular updates, including our weekly Mortgage Watch, available on the Nicol & Co Instagram page @nicolandco_estateagents or through @Matt_the_Agent.