Housing market experiences busiest activity in three years

Sales activity has reached a three-year high so far in 2024, as people look to buy before stamp duty thresholds revert to lower levels.

Zoopla’s house price index shows that demand for homes is 13% higher than the same time last year.

First-time buyer demand jumped by over a third in November and December 2024 in the price bands where stamp duty for first-time buyers will increase the most from April 2025, between £300,000 and £625,000. The greatest savings are to be had by first-time buyers looking to buy in London and higher value areas of South East England.

Richard Donnell, executive director at Zoopla, said: “The first few weeks of each year tend to provide a clear indication of how the rest of the year is likely to unfold. 2025 has started well, better than 2024 and 2023 which bodes well for market activity over the rest of the year, supported by evidence of more people looking to move.

“It is important not to read too much into the increase in stamp duty for more buyers from April as three in five first-time buyers will still pay nothing from April. The extra costs to homeowners remain manageable and unlikely to reduce sales but they will keep price rises in check.

“The healthy stock of homes for sale will keep price rises in check and we are forecasting average UK house prices will rise by 2.5 per cent in 2025 with five per cent more sales than last year at 1.15m. Rising incomes and base rate cuts will improve affordability and support consumer sentiment.”

This trend is also being reflected in auctions, as data from auctioneer iamproperty found that 20% more auctioned sales were completed between October and December 2024.

The current situation is fuelling house price inflation, which ranges from 7.7% in Northern Ireland and 3.2% in the North-West, to 1% in the East region,

The number of homes for sale is also 10% higher than a year ago, meaning that 2025 is starting with the highest number of homes for sale (31) per estate agency branch for seven years.

Demand for homes meanwhile is 13% higher than the same time last year.

Malcolm Prescott, managing director of Webbers Estate Agents, said: “January has started very positively here in the South West, with an abundance of new listings and sales to match.

“In particular, we have seen keen interest in our new homes developments in North Devon and Cornwall, with green credentials, outside space and “choice” still high on the agenda from our broad range of buyers.”

Via @PropertyWire