It’s one of the busiest times of the year in the UK housing market, and this time, the news is looking better than many expected. There’s a renewed sense of movement from both buyers and lenders. If you’re thinking of buying, selling, or just keeping tabs on what’s going on, now’s a good time to get clear on the facts.
Positive Momentum, But No Quick Fixes
Activity across the board is up. Rightmove and Zoopla both report a steady rise in supply, demand, and transaction volumes compared to this time last year. Buyers are returning, sellers are feeling more confident, and deals are getting done.
If you’re currently exploring property for sale in Surrey, it’s a promising time to book viewings and make sure your mortgage options are in place. Stock levels are improving, which means a wider choice of homes and less fierce competition than we’ve seen in previous months.
Mortgage data backs up the trend with more buyers getting approved. The value of new mortgage commitments has also edged up, showing that buyers are willing (and able) to stretch slightly further to secure the right home.
That said, speed is still an issue. Around a quarter of purchases are taking 16 weeks or more to reach exchange. It’s a good reminder that being organised matters. A well-prepared buyer or seller has a much better chance of keeping things on track.
The Rental Market: More Pressure Ahead?
The lettings market continues to face pressure, with demand far outstripping supply. Rents remain high, and landlords are paying close attention to the upcoming Renters Reform Bill, expected to pass later this year. While it’s set to give tenants stronger rights, it may also push more landlords to sell up, which would further tighten the available rental stock.
Still, there are a couple of silver linings. Rent arrears remain below last year’s levels, and tenant demand is showing no signs of cooling. For landlords looking to restructure or exit the market, now might be the time to speak with us, your local estate agent in Surrey about local demand and pricing strategies.
Interest Rates: Moving in the Right Direction
One of the biggest confidence boosters in the current market is the direction of interest rates. After peaking at 5.25%, the Bank of England base rate has now dropped to 4.25%, and forecasters expect it to fall further in the coming months. There’s even talk of it dipping to 3.5% by the end of the year.
Some lenders have already started adjusting their mortgage rates in anticipation, making it an ideal time for buyers to lock in competitive deals. If you’re browsing property for sale in Surrey, this shift could give you just the headroom needed to make an offer.
Sell Now or Wait? Both Options Make Sense
There’s no one-size-fits-all answer to the question of timing your sale, but here are some factors to help guide your decision:
Why you might wait:
- Interest rates are set to fall again, which could boost buyers' confidence and budgets.
- You may be able to test a slightly higher asking price as the market strengthens.
- Buyers aiming to be “in by Christmas” often act quickly in late summer and early autumn.
Why acting now might be better:
- A temporary inflation spike is forecast for the autumn, which could unsettle buyers.
- The autumn Budget could create policy uncertainty.
- A surge in landlord sales (due to legislative changes) may increase local competition.
Whatever your choice, remember that the process itself can take months. Listing your home now doesn’t mean moving next week. It just means getting the wheels in motion and giving yourself options.
Mortgage Market Overhaul: What’s Changing and Why
Mortgage lenders are gradually introducing changes that reflect how buyers’ needs have evolved. While these updates won’t all hit immediately, they signal a more flexible future.
Loan-to-income ratios:
Lenders are becoming more open to lending slightly more to applicants with steady income, even if it’s lower, provided repayments remain affordable.
Stress test adjustments:
Some lenders are easing their ‘worst-case scenario’ interest rate checks, allowing more borrowers to qualify for larger loans.
Longer mortgage terms:
A 30-year term is now common, especially for first-time buyers. It keeps monthly repayments lower, which is often the key to affordability. From next year, rules should make it easier to shorten your mortgage term later without hefty penalties.
Product innovation:
Look out for green mortgages (linked to EPC ratings), home improvement loans, and extended fixed rate offers. A good mortgage broker can match you to the right deal for your situation.
As your local estate agent in Surrey , ask us to recommend a mortgage broker. We can connect you and make your search for property for sale in Surrey much smoother.
A Market That’s Starting to Move Again
A lot of the restrictions placed on lending were introduced in 2014, when the financial landscape looked very different. With house prices having risen sharply since then and wage growth lagging behind, buyers have been squeezed by outdated lending rules. The current changes aim to correct that and create a more realistic, fairer system for today’s borrowers.
Whether you're a first-time buyer, looking to move up the ladder, or considering a downsize, this market is finally showing signs of life after a period of uncertainty.
If you're planning a move soon, now’s the time to get organised. Speak with us - your experienced estate agent in Surrey, sort your finances, and make sure you’re ready to act when the right property comes up. There’s a sense that confidence is returning, and that’s often when the best deals are done.
Nicholls Residential are your local property experts for the Surrey area. Call us at any of our offices or email This email address is being protected from spambots. You need JavaScript enabled to view it. to chat with a member of our friendly and experienced team.
Note: The information in this article is based on data as of May/June 2025 and may change. Always seek professional advice for specific circumstances.
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