The UK housing market has seen its busiest May since 2021, as increased supply and looser mortgage rules drive a sharp rise in agreed sales. Despite the end of temporary stamp duty reliefs, buyers have returned in force – especially in the North and Scotland, where affordability and demand remain more resilient. While house prices remain broadly flat across much of the South, market activity suggests renewed confidence heading into the second half of the year.
- May sales hit a four-year high, according to Zoopla.
- 13% more homes are on the market compared to last year.
- Mortgage rule changes allow buyers to borrow up to 20% more.
- House prices are up 1.6% on average but typically below asking price.
- Blackburn leads national growth, with prices up 14.4% in a year.
Original article source: This is Money
While headlines often focus on price drops or affordability pressures, this latest data offers a more constructive picture – the UK housing market is adjusting.
May’s surge in buyer activity, despite the withdrawal of stamp duty reliefs, tells us something important – demand remains intact. What’s changed is the distribution of that demand. Buyers are gravitating towards value, flexibility, and realism – a trend that’s playing out most clearly in the North and Scotland.
The loosening of mortgage affordability rules is having a clear impact. When borrowers can access 20% more funding than earlier this year, it brings a wider range of properties within reach – especially outside the South East, where incomes stretch further and price-to-earnings ratios remain more balanced.
The North West and Scotland’s performance reinforces a trend we’ve been tracking for some time: regional markets with stable employment bases and more accessible pricing are gaining ground. For landlords and investors, these areas now offer more than affordability – they offer momentum. Blackburn’s 14% annual price growth isn’t an anomaly; it’s the result of focused buyer appetite meeting limited supply.
By contrast, Southern England’s flat price growth reflects a more saturated market and stricter affordability barriers. It’s not a downturn – it’s a correction. Sellers adjusting expectations and pricing more competitively is not a weakness; it’s a reset that makes deals more achievable, and sale cycles shorter.
For those holding or expanding portfolios, this is a period to watch with interest. Activity is returning not because of fiscal levers, but because the fundamentals – supply, financing, and pricing – are aligning more productively than they have in some time.
Expect this divergence between North and South to continue through the second half of the year – and with it, new opportunities for location-savvy buyers.
