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Momentum Returns: Signs of Strength in the Housing Market

After a quieter start to the year, the housing market is showing clear signs of renewed momentum. In May & June, the number of sales agreed reached its highest level in four years, a pace not seen since the post-pandemic boom of 2021.

This marks a significant shift in market activity and suggests that many of the headwinds dampening buyer enthusiasm earlier in the year such as the end of stamp duty reliefs and seasonal slowdowns around Easter, are now firmly in the rear-view mirror.

A 13% rise in new listings gave buyers more choice, helping to fuel this increase in transactions. With greater stock on the market, buyers are moving quickly—suggesting that demand remains strong when supply improves.

Market sentiment is also on the rise. A recent poll by shows that 53% of agents have seen buyer confidence improve over the past three months. With more homes available and buyers feeling optimistic, both sellers and buyers are finding firmer ground to make their next move.

What This Means for Sellers and Buyers

For sellers, the message is clear: now is a good time to bring your home to market. With buyers actively searching and stock levels rising, well-presented, realistically priced properties are in demand.

For buyers, the increased choice and positive sentiment offer a more balanced landscape—one where it’s possible to act with greater certainty and less pressure than in previous frenzied periods.

Looking Ahead

If this trend continues, the rest of 2025 could shape up to be a more confident and constructive period for the housing market. While external factors such as interest rates and inflation remain in play, the signs of recovery and renewed buyer engagement are encouraging.

 

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 3782  total transactions across the WR postcode area reflecting a 9% decline in transactions compared to the previous year with an average sales price of £297,156 .

Worcester recorded 1662 transactions down 8% while Malvern saw 531 transactions down 14%.  In Droitwich transactions fell by 14% to 417.

Over the same period the average sale price increased by 3% to £297,156. 11% of sales in the past 12 months were flats, achieving an average sales price of £151,814. Houses achieved an average price of £323,066.

The increase in average sales price over the last five years is shown below:

Over the last 12 months, the average rent achieved for homes let in WR postcode area was £910 per month representing a +5.5% change on the previous 12 month period. 40% of homes let in the past 12 months were flats, achieving an average rental value of £760 per month. Houses achieved an average rent of £1,036 per month

In Droitwich rents have climbed by 10% to an average of £878 with flats achieving £699 per month and houses achieving an average rent of £1,048 per month.

Malvern experienced a 9% change on the previous 12 months with the average rent achieving £1054 per month, with flats averaging a rental value of £871 per month and houses reaching £1185 per month. Worcester’s average rent rose by 2% to £880 with flats achieving an average value of £773 and houses £985 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 rose to £265,497 in April, a 3.5% year-on-year increase. According to Rightmove new seller asking prices drop by 0.3% (-£1,277) this month to £378,240. Zoopla expect house price growth to slow towards 1% to 1.5% in the coming months.

 

Economy

The Bank of England has held interest rates at 4.25% in the June meeting.

This comes as the monthly GDP is estimated to have fallen by 0.3% in April 2025, following growth of 0.2% in March 2025 (ONS). Meanwhile CPI inflation rose by 3.4% in the 12 months to May 2025, compared with 3.5% in April. (ONS).

Lettings Market

Voids remained steady at 21 days in May for the third consecutive month, reflecting consistently strong demand across the market.

Rents are forecast to increase by 3-4% over 2025 as slower growth in large cities is offset by faster growth in more affordable markets.

The average rent in May was £1,307, up 0.8% year on year.

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

 

The Rebuild Begins – Matt Everard on Leading the Worcester Warriors Into A New Era

In this powerful and personal episode of the Just Local Podcast, we sit down with Matt Everard, the newly appointed Head Coach of the Worcester Warriors.

From his early days at Leicester Tigers to playing and coaching in London and Nottingham, Matt shares his unique journey through professional rugby — and what it means to him to take the reins at Worcester in one of the most anticipated rugby revivals in recent memory.

We talk rebuilding culture, player recruitment, long-term vision, and the emotional weight of bringing rugby back to a city that lives and breathes the sport. Matt opens up about the challenges of assembling a team from scratch, the importance of character in player selection, and the overwhelming support from Worcester’s passionate fanbase.

Whether you’re a die-hard rugby supporter or just love a story about leadership and community, this episode is not to be missed.

Topics include:

• Matt’s playing and coaching journey
• How the head coach role came about
• Building a squad from 200+ potential players
• What Worcester rugby means to the city
• His philosophy for long-term success
• Tune in, share, and support Worcester’s next chapter.

 

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.