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Latest UK house price figures offer “high hopes” for 2025

UK Property

Posted in Jan 31 , 2025

Latest UK house price figures offer “high hopes” for 2025

The UK property market started on a good note in 2025, with steady growth and more buyers entering despite the uncertain economy. Experts remain optimistic that 2025 will end profitably for everyone.

Recent data from the government shows that the average housing price is on the rise throughout the UK. Prices have increased 2.5% with a yearly ratio following the period of stagnation the market saw in 2023 and the start of 2024 due to the pressure of interest rates getting high. But since these rates have started to go downhill, the demand has increased, and the market has shown a sign of stability and growth.

The reports suggest that in January 2025, a record number of property listings were seen, indicating that seller confidence is back. The average asking price for a house has also increased, indicating that new buyers are coming.

What’s Driving the Growth?

Experts say there are several factors contributing to this change, including:

The news of multiple rate cuts in 2025 by the Bank of England aims to make borrowing easier and encourage mortgage applications.
After the market stabilises, more first-time buyers and investors return with high hopes.
Government-backed schemes continue to support new and old buyers and help homeowners with easy access.
More opportunities are entering the market as new properties are listed.

Trends in Regions

The reports suggest that housing prices have grown more in regions like the Midlands and North of England. This is mainly due to affordability for buyers and ease of transportation. Whilst the London market has recovered from its slow growth in past years, we also see early signs that it is improving for the prime housing niche.

Now, the government needs to tackle the economic uncertainty, inflation, and policy fluctuations that could impact performance at any time. As the year begins to unfold, the buyers and sellers are adviced by experts to stay informed with new trends and rate changes to maximise their opportunities. To stay in touch with this news, keep returning to our website!

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Mortgage Approvals Surge as Buyers Rush to Beat Tax Changes

With mortgage approvals about to rise in the UK, all key homebuyers have started their race to get the best deals on their property before the stamp duty is changed. As per the latest news, the approvals to purchase houses have hit an all-time high in the last few months, driven mainly by the concern over taxes getting adjusted in the upcoming budget. What’s the increase? The latest figures from the Bank of England reveal that mortgage home buying approvals increased to 50,000+ last December from 48,000 in November. This was the highest number of approvals since July 2023, which indicates an increase in buyers looking to purchase properties before stamp duty increases. Despite the high interest rates, the number is rising because buyers are keen to ensure they lock in the best mortgage deals after the news surfaced in the market about tax changes for homebuyers in the coming months. Is it temporary? Unless the government has other plans, the threshold will be introduced temporarily and is rumored to expire in March 2025. The current speculation is that the Chancellor may soon reveal the changes in the Spring Budget, declaring an end or revision in tax for buyers. First-time buyers in England and Northern Ireland pay no stamp duty tax on properties valued at up to £425,000 and a reduced rate for homes worth up to £625,000. Due to rising market concerns, buyers are pushing to speed up their purchases. They fear that they might have to pay more if they wait. Since last month, first-time buyers have increased their activities to get their hands on the best properties. What’s the impact on the housing market? With this surge, hopes for the 2025 UK housing market are firm. While property prices are generally stable, the increase in demand may lead to short-term price growth in many areas, primarily where buyers compete to get good property deals before the tax is implemented. It should also be noted that experts have already warned that removing or reducing the stamp duty may cause a slowdown in the latter part of 2025. It would cool the market and dry up sales, as investors are pushing hard to lock mortgages and finalize their properties before the announcement. With mortgage approvals on the rise, buyers are rushing to finalise the deals whilst all eyes are on the Chancellor to reveal the Spring Budget. The government’s decision on stamp duty could significantly impact market activity in the months ahead. For now, buyers considering purchasing a property may benefit from acting sooner rather than later, as the current stamp duty thresholds remain in place.

Latest UK house price figures offer “high hopes” for 2025

The UK property market started on a good note in 2025, with steady growth and more buyers entering despite the uncertain economy. Experts remain optimistic that 2025 will end profitably for everyone. Recent data from the government shows that the average housing price is on the rise throughout the UK. Prices have increased 2.5% with a yearly ratio following the period of stagnation the market saw in 2023 and the start of 2024 due to the pressure of interest rates getting high. But since these rates have started to go downhill, the demand has increased, and the market has shown a sign of stability and growth. The reports suggest that in January 2025, a record number of property listings were seen, indicating that seller confidence is back. The average asking price for a house has also increased, indicating that new buyers are coming. What’s Driving the Growth? Experts say there are several factors contributing to this change, including: The news of multiple rate cuts in 2025 by the Bank of England aims to make borrowing easier and encourage mortgage applications. After the market stabilises, more first-time buyers and investors return with high hopes. Government-backed schemes continue to support new and old buyers and help homeowners with easy access. More opportunities are entering the market as new properties are listed. Trends in Regions The reports suggest that housing prices have grown more in regions like the Midlands and North of England. This is mainly due to affordability for buyers and ease of transportation. Whilst the London market has recovered from its slow growth in past years, we also see early signs that it is improving for the prime housing niche. Now, the government needs to tackle the economic uncertainty, inflation, and policy fluctuations that could impact performance at any time. As the year begins to unfold, the buyers and sellers are adviced by experts to stay informed with new trends and rate changes to maximise their opportunities. To stay in touch with this news, keep returning to our website!

Rachel Reeves to Soften Non-Dom Tax Changes to Attract Wealthy Investors

Rachel Reeves, the Shadow Chancellor, just revealed the new plans to revise Labour’s approach towards the non-domicile (non-dom). The tax reform signals a stance that will urge wealthy investors to reside in the UK. At the World Economic Forum held in Davos, Reeves talked about how important it is to ensure that the UK remains competitive in the global race of making it easy for investors. Non-dom tax schemes have always been on the radar of criticism because of their relaxation in preventing residents from paying taxes on income from outside the UK. The Labour Party has tagged this scheme as unequal, and they have already committed to ending it, which may result in a raise of £3.2 billion yearly for public services funding. As per the recent reports by the local authorities, ending this scheme may result in high-net-worth people and businesses taking their assets out of the country. In the past few years, more than 12,000 non-domiciled people have left the country, meaning more investors have left the market. The Reeves stated that these risks are too dangerous and that “It is vital that the UK remains open for business while addressing the need for a fairer taxation system.” Labour's revised plan includes an update on keeping the non-dom with some tweaks. Possible changes include reducing the time of non-dom status or adding the requirements to qualify for a stay. Reeves's shift in tone comes after feedback from major businesses and investors worried about their participation in stabilising the UK economy. This decision is based on the heightened scrutiny of tax policies after multiple wealthy people took their money out of the market. This is also why the UK is getting a lower rating as a foreign capital-friendly destination, leading to a 10% cut in property market investments in the last 2 years due to taxes. The softened reforms are meant to prevent any further hurdles in the economy. Still, the critics are urging Labour to make sure that rules that are revised again must be able to generate a substantial amount of ROI for public services whilst discarding the loopholes. The non-dom tax story and this policy are evolving with time, and Reeves’ statements are signalling Labour’s working to ensure a balance in taxation so that the UK offers a good positive advantage to the wealth investors, businesses and landlords against the global economy. Read More: Landlord Faces Over £23k Penalty for Failing to Meet Rental Standards

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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