Promising Start to 2025 for the UK Housing Market

Posted: 30 January 2025

The UK housing market has kicked off 2025 with a significant surge in activity, as a record number of new sellers entered the market post-Boxing Day. According to a recent report from Rightmove, this has been accompanied by a pronounced 1.7% rise in the average property price, equivalent to £5,992, pushing the average asking price to £366,189. This marks the largest January price climb since 2020 and points to a potentially vibrant year ahead for the property market.

While seasonal trends often see prices rebound in January following December dips, this year’s increase is particularly pronounced. Alongside rising prices, sales activity is intensifying with new property listings up by 11% compared to last year. Buyer inquiries have also grown by 9%, and the number of sales agreed has risen by 11% over the same period, showing strong demand in the market.

What’s Driving the Market?

Falling interest rates and easing inflation are encouraging buyers to make offers, despite affordability constraints. Although property values remain nearly £9,000 below the May 2024 peak, the combination of higher supply and greater buyer competition is driving optimism.

Colleen Babcock, a property expert at Rightmove, commented, “New sellers have started the year with a bang. We’ve also seen a strong start to the year in new seller asking prices, though given the higher-than-expected seller competition, we would expect this to slow down over the next few months.”

Challenges Ahead

Despite this promising outlook, challenges remain. Mortgage rates have remained relatively high, with the average five-year fixed mortgage rate at 4.75%, showing little change from last year. Reforms to stamp duty in April, reducing the tax-free threshold to £300,000, may also impact buyer behaviour, particularly in the high value property sector.

Market Forecasts

Rightmove projects an increase in transactions, with an estimated 1.15 million expected this year. Asking prices are predicted to go up by an average of 4%, though uncertainties around Bank of England interest rate cuts and bond market performance could influence outcomes.

Contact THB Legal’s Expert Conveyancing Team

Whether you’re a first-time buyer, a seasoned property investor, or planning to sell, navigating the today’s housing market requires expert guidance. At THB Legal, our experienced conveyancing team is here to provide personalised advice and support to help you through the whole conveyancing process.

Don’t wait—contact our expert conveyancing team today and ensure your property transactions are handled with care and expertise. Call our Chelmsford Office on 01245 493959 or our Shoeburyness Office on 01702 298282, alternatively send an email