UK Property Market & Hiring Update – August 2025

Understanding the latest hiring trends in the UK property sector

1. Residential Sales Market


Official Data (ONS, June 2025):


  • Average UK house prices rose 3.7% year on year to around £269,000.


  • Prices increased 1.4% month on month (May to June, non-seasonally adjusted).


  • Regional leaders: North East +7.8% annually, Scotland +5.9%, Northern Ireland +5.5%.


  • London remained subdued: just +0.8% annually and +0.6% monthly.


  • Transactions reached about 94,000, up 13% month on month and 1% year on year.


  • Mortgage approvals hit 64,167, about 6% higher than a year ago.




More Recent Indicators (July–August 2025):



  • Rightmove reported asking prices down 0.3% in June and a further 1.3% in August. Average asking price now about £368,740, just 0.3% up year on year.


  • RICS July survey showed buyer enquiries improving slightly (net balance +3%) but price sentiment still negative (–7%).


  • Analysts continue to flag “zombie listings” inflating apparent supply.





2. Lettings Market


Official Data (ONS, July 2025):


  • Private rents increased 5.9% year on year, slowing from 6.7% in June.


  • England up 6.0%, Wales up 7.9%, Scotland 3.6%, Northern Ireland 7.4%.


  • Fastest regional rise: North East +8.9% annually


More Recent Indicators (Q2 and Summer 2025):


  • Rightmove reported record average asking rents: £1,365 outside London and £2,712 in London.


  • Growth is slowing: annual rent increases have eased to around 3.9% outside London.


  • Tenant demand is softening, down 10–11% versus last year, and more listings now show reduced rents






3. Government Policy and Economic Context



  • Mortgage affordability rules were loosened mid-2025, boosting borrowing power by up to 20%.


  • Bank of England rates reduced to 4%, despite concerns about inflation.


  • Renters’ Rights Bill (abolishing Section 21) is progressing through Parliament, expected to become law in 2026.





4. Implications for Recruitment and Hiring in Property Agencies



Sales Roles:


  • Negotiators, valuers and compliance staff remain in demand where transactions are climbing (North East, Scotland, Midlands).


Lettings Roles:


  • Property managers and lettings leaders are vital in high-rent growth areas such as the North East, Wales and Northern Ireland.


Skill Shortages:


  • Strong demand for staff who can interpret data, manage high inventory and advise on pricing.


  • Lettings teams with digital marketing and negotiation skills are increasingly sought after.


Salary Trends:


  • Broader job market shows softer salary growth, but in agencies, specialists in pricing strategy and digital listings still command a premium.






5. Outlook – Next 4 Weeks


  • Sales: Regional activity likely to stay strong, particularly outside London, supported by higher mortgage approvals. Asking prices may continue slight downward adjustments.


  • Lettings: Rent growth will likely cool further as supply improves and tenant demand softens.


  • Hiring: Expect continued demand for negotiators and property managers, especially in high-growth rental regions and active sales markets outside the South East.





Conclusion


The UK property market is moving through a transition.

Official data shows solid activity from June, while more recent indicators suggest softer pricing momentum in July and August.

Lettings rents remain high but growth is slowing.


Recruitment remains active across both sales and lettings, with skill shortages most acute in data-driven sales roles and property management.


If you want to secure the right staff to navigate this market, Windmill9 Consulting can help. We specialise in property recruitment, with the experience, insight and reach to connect you with the best candidates. Contact us today to discuss your next hire.

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