The UK housing market has has got off to a stronger start than in 2024 or 2023 with buyer demand up 13% and 10% more homes for sale.
Increasing property sales are supporting UK house price inflation which is up 2% in the year to December 2024, compared with a 0.9% dip a year ago, the new figures from Zoopla reveals.
House price inflation ranges from 7.7% in Northern Ireland and 3.2% in the North-West, to 1% in the Eastern region, supported greater demand from purchasers, as people react to the removal of stamp duty relief from April 2025.
Industry reactions:
Tom Bill, head of UK residential research at Knight Frank, said: “Demand in the UK housing market feels artificially high. As well as the prospect of higher stamp duty from April, a number of borrowers are sitting on sub-4% mortgage offers that pre-date the Budget, which will support prices and transaction volumes in the first quarter of this year. As the impact of higher mortgage costs kicks, we expect a period of downwards pressure on house prices that will only be alleviated once rate cut expectations rise.”
Malcolm Prescott, managing director of Webbers Estate Agents, commented: “Fundamentally the UK property market thrives on confidence and positive sentiment and whilst we have had to endure negative press for a while we are now seeing customers positively embracing property hearing that prices are set to rise, albeit marginally (4/6%) and affordability seems to be back given the more consistent mortgage interest rates.
“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.”
Gareth Samples
Gareth Samples, CEO of The Property Franchise Group, commented: “The year has started with an increase in market activity, with property transactions expected to be much healthier this January compared to last year. This is driven by factors such as marginally lower mortgage rates, a robust sales pipeline, and more favourable market conditions.
“Many prospective buyers who were waiting for mortgage rates to drop, have also been spurred on by the upcoming Stamp Duty changes and are hoping to get their transaction over the line before April. While some may have preferred to wait longer for mortgage rates to ease further, the looming deadline has motivated them to accelerate their plans.
“The increased demand, coupled with an improving economic outlook, is helping to sustain house prices. While we may see demand moderate somewhat after the Stamp Duty changes, factors like the anticipated interest rate cuts are expected to bolster market confidence.”
Toby Leek, president of NAEA Propertymark, added: “The stamp duty changes due to commence in England and Northern Ireland from April are having the expected effect of high activity due to many people wanting to save themselves potentially thousands on their next home move.”