In July 2025, the UK housing market showed its clearest signs of recovery this year. According to Halifax, average house prices rose by 0.4% month-on-month—the strongest single-month increase so far in 2025. Zoopla’s latest House Price Index also reported an annual growth rate of 1.3%. Although this is slightly lower than the previous month, the overall trend remains steady.
More notably, market activity continues to pick up. Zoopla reports that buyer demand increased by 11% year-on-year, with agreed sales up by 8%. Meanwhile, new listings rose by 20%, pushing inventory levels to a four-year high. This simultaneous growth in both supply and demand has improved transaction efficiency and is helping the market move past the stagnation seen in earlier quarters.
Affordability Improves as Lending Conditions Ease
As property prices stabilize, buyer affordability is also improving. The Bank of England’s base interest rate now stands at 4%—the lowest level in over two years. Alongside this, mortgage lenders are easing approval criteria, further supporting buyer confidence.
Zoopla notes that under revised affordability rules, borrowing capacity for buyers has increased by around 20% compared to last year. This shift has reactivated demand, especially among first-time buyers and home movers, helping to restore positive market sentiment.
Market Recovery Is Supporting Sales and Asset Stability
As overall activity rises, we are seeing solid sales performance across our listed properties. Buyer decision-making is faster, transaction cycles are shortening, and the broader sales environment is clearly becoming more favourable.
The improving market is also supporting smoother sales and more efficient capital flow. This enables us to manage project timelines more effectively, and provides us with greater control over development planning and financial execution in the second half of the year.
Fixed Returns Backed by a Strengthening Market Environment
While Cosy Hauz offers investors a fixed return structure, the current market conditions are adding tangible layers of security to that commitment.
Gradual price appreciation helps preserve the underlying value of our assets; improved transaction speeds allow for faster capital recovery; and enhanced buyer affordability ensures sustained demand in our target segments. These factors collectively reduce liquidity risks and improve the reliability of our return delivery.
Most of our projects are located in areas Zoopla identifies as high-resilience zones—regions with stable pricing and consistent demand. Against a backdrop of easing interest rates and favourable lending policy, Cosy Hauz is positioned to maintain long-term competitiveness and capital protection for our investors.
At Cosy Hauz, we remain committed to building better homes and better returns. Visit our website and get to know more about what we do.
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