Housing insight report August 2025

The second quarter of 2025 shows the commercial property sector is balancing short-term challenges with long-term opportunities, as agents report shifting confidence across sectors.

Responding to the Office for National Statistics’ (ONS) consultation on the Price Index of Private Rents (PIPR), Propertymark urges better alignment of UK-wide rental data, the use of achieved rather than advertised rents, and faster income statistics to strengthen affordability analysis. Clearer explanations of methodology are needed, as well as greater transparency around Rent Officer data, and quicker publication to make the index more useful.

Auctions remained resilient this quarter, with 81% of lots achieving or exceeding the reserve price, increased stock levels, persistent 3.6% inflation and a 4.25% base rate. Growth in online participation and steady demand signal continued market strength heading into H2 2025.

The July 2025 report shows steady sales with stronger appraisals, but affordability remains stretched amid high inflation and static interest rates. Rental demand continues to outpace supply, keeping competition intense despite slight stock growth.