UK House Prices Climb Nationwide as Buyer Demand Surges

UK Property

Posted in Jan 22 , 2025

UK House Prices Climb Nationwide as Buyer Demand Surges

In the year 2024, according to RICS, there was a net increase in balance of 5% in all buyer inquiry reports making it a 6th straight period showing growth in the interest of buyers in UK housing market. Along with this, a net balance of 7% stated a rise in sales volume which had slumped to just 1% in November.

Moreover, RICS has stated that due to the rise in property listings, the market appeared more stable as around 14% of the professionals noted an increase in new instructions for selling in December.

House prices increased in every region

There is an apparent increase in house prices in every region of the UK, and Northern Ireland and Scotland have seen the most of it. The (ONS) Office for National Statistics also reported that the price of an average house peaked at £293,000 in August 2024, which was an increase of £8,000 compared to the previous year of 2023. The average house price in England went up to £310,000, more than a 2% increase. This number was 3.5% in Wales and 5.4% in Scotland, as reported.

Stamp duty on mortgage rates

Mortgage rates fell from their highest point of 6.1% in July 2023 to 4.6%, which led to a 29% increase in sales agreements and 17% in inquiries from potential buyers. Analysts have stated that stamp duty in April 2025 has urged buyers to accelerate their purchases, as more than 80% of buyers could be affected by this process.

Outlook for coming months

RICS reported that a net balance of 53% of property professionals expect house prices to continue rising over the next 12 months. The property market analyst forecast a 2.5% average rise in house prices for 2025, with regional variations due to differences in housing affordability.

However, potential challenges could impact this growth. The market's sustainability may be tested if mortgage rates climb significantly in the coming months. Additionally, the expiration of the temporary stamp duty cut could influence buyer behaviour.

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UK House Prices Climb Nationwide as Buyer Demand Surges

An increase within the level of buyers’ inquiries has led to a substantial growth in the UK housing market prices across all regions. The rise within housing prices can be explained due to many reasons, such as increased property listings, an acceptable level in mortgage rates, and predicted amendments in stamp duty. In the year 2024, according to RICS, there was a net increase in balance of 5% in all buyer inquiry reports making it a 6th straight period showing growth in the interest of buyers in UK housing market. Along with this, a net balance of 7% stated a rise in sales volume which had slumped to just 1% in November. Moreover, RICS has stated that due to the rise in property listings, the market appeared more stable as around 14% of the professionals noted an increase in new instructions for selling in December. House prices increased in every region There is an apparent increase in house prices in every region of the UK, and Northern Ireland and Scotland have seen the most of it. The (ONS) Office for National Statistics also reported that the price of an average house peaked at £293,000 in August 2024, which was an increase of £8,000 compared to the previous year of 2023. The average house price in England went up to £310,000, more than a 2% increase. This number was 3.5% in Wales and 5.4% in Scotland, as reported. Stamp duty on mortgage rates Mortgage rates fell from their highest point of 6.1% in July 2023 to 4.6%, which led to a 29% increase in sales agreements and 17% in inquiries from potential buyers. Analysts have stated that stamp duty in April 2025 has urged buyers to accelerate their purchases, as more than 80% of buyers could be affected by this process. Outlook for coming months RICS reported that a net balance of 53% of property professionals expect house prices to continue rising over the next 12 months. The property market analyst forecast a 2.5% average rise in house prices for 2025, with regional variations due to differences in housing affordability. However, potential challenges could impact this growth. The market's sustainability may be tested if mortgage rates climb significantly in the coming months. Additionally, the expiration of the temporary stamp duty cut could influence buyer behaviour.

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