Your monthly UK housing market update. Including sold and asking prices, RICS surveyor sentiment and predictions for the year ahead.
HM Land Registry – Sold Prices
Sold prices continued their steady climb, with average UK property values rising by 3.3% in the year to November 2024. The average home now costs £290,000—£10,000 more than last year. Of English regions, the North East led the way with a 5.9% increase, while London saw a dip of -0.1%. Scotland and Northern Ireland posted the strongest gains, rising 4.7% and 6.2%, respectively.
Despite annual growth, prices slipped -0.4% on a non-seasonally adjusted basis between October and November. This compares with a fall of -0.7% last year. The market stayed resilient though, as HMRC recorded 93,000 residential property transactions—nearly 13% more than the previous year.
The Bank of England’s interest rate cut boosted confidence but didn’t trigger a surge in new sales. Mortgage approvals fell to 65,700 in November (a -3.8% dip), suggesting buyers remain cautious about affordability.
Rightmove – Asking Prices
The housing market started 2025 with fresh energy as buyers and sellers shook off last year’s hesitation. The average asking price jumped by 1.7% (£5,992) in January, reaching £366,189—the strongest start since 2020. However, prices still sit nearly £9,000 below their May 2024 peak, reflecting ongoing affordability pressures.
New listings were up 11% on last year, while the number of properties for sale per estate agency branch is at its highest level (for this time of year) in a decade. Buyers responded, pushing up enquiries by 9% and agreed sales 11% higher than January 2024. Still, competition remains fierce. Sellers overpricing their homes risk losing out to more competitively priced properties.
Despite all this positivity, uncertainty remains—and first-time buyers face the toughest challenge. Demand for these homes rose 8%, but higher stamp duty could slow activity in pricier areas. Mortgage rates also remain a hurdle, with the average five-year fixed rate at 4.75%.
RICS – Chartered Surveyor Sentiment
Surveyors ended 2024 on a cautiously optimistic note, reporting steady demand and rising house prices across all UK regions. However, shifting economic conditions could bring new challenges.
Buyer demand remained strong, but momentum slowed in December. +5% of respondents reported an increase in buyer enquiries, down from +11% in November. Sales volumes edged up, with +7% of surveyors noting increased transactions. Looking ahead, 37% expect sales to rise in the next year, though optimism has softened compared to earlier in 2024.
Sellers kept supply flowing (with new instructions at +14%), increasing new listings for the sixth consecutive month. However, valuations stabilised at -3%, the lowest reading since December 2023. This may signal a slowdown in fresh properties hitting the market.
House prices continued rising, especially in Northern Ireland and Scotland. Looking forward, 53% of surveyors expect further price growth in 2025, reinforcing the market’s resilience despite economic headwinds.
Zoopla – Housing Market Outlook
Early signs from 2025 point to a stronger market than the past two years, with more buyers stepping back in. Some home movers are racing to beat the April stamp duty changes, but Zoopla doesn’t expect a major long-term impact. Around 60% of first-time buyers will still avoid stamp duty altogether, while the increased costs for others remain relatively manageable.
A steady flow of new listings has kept price growth in check, preventing overheating. Zoopla predicts UK house prices will rise by 2.5% in 2025, with transactions reaching 1.15 million—5% more than last year.
Affordability should improve as incomes rise and interest rate cuts take effect. However, economic stability and mortgage rate movements will shape the pace of recovery. While the outlook remains positive, buyers and sellers should keep a close eye on financial conditions in the months ahead.
Express Index
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