A growing number of UK homebuyers and sellers are expecting house prices to rise over the coming year, even as confidence in the government’s ability to meet housing targets remains low, according to the latest Property Sentiment Index from OnTheMarket.

The June 2025 report reveals that 51% of consumers believe property prices will continue to climb over the next 12 months, following a 3.5% annual increase to £265,000 in the year to April.

Only 10% expect prices to fall, while 21% predict they will remain stable.

Despite broader concerns about affordability and government policy, sentiment among buyers and sellers remains upbeat when it comes to how quickly they can transact.

Among sellers, 39% expect to secure a buyer within three months, and a further 36% believe a sale will be agreed within six months. Just 4% expect it will take more than a year.

Buyers are similarly optimistic: 27% expect to find and secure a property within three months, and 28% expect to do so within six months. Only 7% foresee the process taking more than a year.

Financial confidence also remains relatively strong. Seven out of 10 (70%) property seekers said they felt either very (44%) or fairly (26%) confident about raising the funds required to purchase a home.

WIDESPREAD DOUBT

However, there is scepticism about the delivery of new housing stock. Since Labour’s election in July 2024, the government has pledged to build 1.5 million new homes by 2029. Yet only 26% of respondents believe this target is achievable, while 49% think it is unlikely to be met.

Interest in new builds remains solid, with 46% of respondents saying they would consider purchasing a newly built home. However, rental market sentiment is more cautious. With 66% expecting rents to rise over the next 12 months, affordability concerns remain top of mind.

Yet confidence in securing a rental property is still high – 51% of renters believe they will find a suitable property within three months.

Awareness of the government’s proposed Renters’ Rights Bill is limited. Almost four out of 10 (37%) respondents said they had never heard of it and a further 33% were aware of the legislation but knew little about it. Only 8% claimed to know a lot.

Matt Thompson, head of residential sales at Chestertons, said that the market in London had seen a post-Easter bounce: “Sellers remained motivated and, helped by mortgage products dipping below 4%, the capital experienced a steady volume of agreed sales through May and June.”