UK Housing Market Boom: Record Activity And Growth - Will it Last?

UK Housing Market Boom: Record Activity And Growth

The UK housing market has begun 2025 with unprecedented momentum, showcasing record-breaking activity and steady growth in house prices. From a surge in property listings to regional price trends and potential stamp duty changes, the property landscape is evolving. Whether you're a first-time buyer or a seasoned investor, staying informed on these developments is vital. Mortgage One is your trusted partner in navigating this vibrant market.

Record Activity And New Listings

Boxing Day 2024 sparked an extraordinary housing boom, with Rightmove reporting a 26% increase in new property listings compared to the previous year. This uptick heralded a bustling January, signaling heightened confidence among both buyers and sellers.

Why It Matters: An influx of property listings means more choices for buyers, but also greater competition.

House Prices Continue Steady Growth

House prices experienced a month-on-month increase of 0.7% in December 2024, culminating in an impressive annual growth rate of 4.7%. The average UK house price now stands at £269,426, reflecting a resilient market despite concerns about affordability.

Key Takeaway: A healthy growth trajectory benefits homeowners but highlights the need for tailored mortgage solutions for buyers.

Regional Variations In Price Trends

Regional disparities in price growth remain a defining feature of the market:

• Northern Ireland led with a 6.8% annual growth rate.

• The South East reported modest growth of 0.7%, influenced by high property values.

Understanding these trends helps buyers identify opportunities in diverse areas.

Stamp Duty Changes Driving Market Activity

The anticipated stamp duty changes in April 2025 have prompted a rush in property transactions. Late 2024 saw a 23% rise in sales volumes compared to 2023, especially among second-home buyers aiming to capitalize on current policies.

Buyer Tip: Acting before policy shifts can lead to substantial savings. Mortgage One's expertise ensures seamless navigation of these changes.

Mortgage Rates And Economic Factors

With the Bank of England maintaining its base rate at 4.75% in December 2024, buyers are evaluating the impact of potential rate cuts in 2025 against ongoing economic uncertainties.

Expert Insight: Securing a competitive mortgage rate now provides stability amid fluctuating economic conditions.

Challenges In The Super-Prime Market

London’s super-prime market saw a 26% dip in sales of homes valued above £15 million, influenced by political shifts and increased stamp duties. Despite this, iconic neighborhoods like Mayfair and Notting Hill continue to attract affluent younger buyers and international investors.

What To Expect In 2025

Analysts forecast continued growth:

• House prices are set to rise by 2.5%.

• Property transactions are predicted to climb from 1.1 million in 2024 to 1.15 million.

These trends suggest improved affordability, increased supply, and sustained demand.

Navigate The Market With Mortgage One

As the UK housing market evolves, opportunities abound. Whether you're a first-time buyer, upgrading, or investing, Mortgage One offers the best personalised advice to help you secure the best mortgage deal.