The UK property market is kicking off 2025 with strong momentum, as renewed buyer confidence, competitive mortgage deals, and increased property listings create a dynamic environment for both buyers and sellers. With house prices rising and market activity growing, it’s shaping up to be an exciting year for those looking to make a move.
Property prices on the rise
House prices have climbed by 1.7% (+£5,992) this month, bringing the average price of property coming to market to £366,189. This is the biggest early-year increase in five years.* This suggests that demand remains high, giving sellers a positive outlook. Buyers, on the other hand, should act swiftly when they find a well-priced property, as competition is strong.
More sellers are listing their homes
There has been an 11% increase in new property listings compared to the same period last year.* This means buyers have more choices, but it also highlights that sellers are feeling optimistic about the market. If you’re thinking of selling, now is a great time to take advantage of buyer demand and ensure your home is presented well to stand out from the competition.
Buyer activity is gaining strength
The number of agreed sales has increased by 11% year-on-year,* signalling that more buyers are committing to purchases. With realistic pricing, desirable properties are receiving strong offers, and many buyers who were waiting on the sidelines in 2024 are now taking action. With improving market conditions, hesitation is decreasing, and serious buyers are moving forward.
Competitive mortgage deals are driving activity
One of the biggest shifts in 2025 is the mortgage market. Lenders are offering more competitive rates, encouraging buyers who may have delayed their move last year to re-enter the market. Lower borrowing costs mean increased affordability, making homeownership more accessible for many. This is particularly good news for first-time buyers, who now have more options at reasonable rates.
Energy efficiency matters more than ever
With new energy regulations on the horizon, buyers are becoming more focused on a property’s Energy Performance Certificate (EPC) rating. Homes with strong energy efficiency credentials, such as upgraded insulation, solar panels, and heat pumps, are attracting increased attention. Sellers who make energy-efficient improvements can boost their home’s appeal and potentially secure a higher sale price. Buyers, meanwhile, are factoring in future energy costs and favouring properties that offer long-term savings.
Government support schemes for buyers
Government-backed schemes continue to play a vital role in helping people onto the property ladder in 2025. The First Homes scheme remains a popular option, offering discounts of up to 30% for first-time buyers purchasing newly built homes. Meanwhile, the Mortgage Guarantee Scheme, extended to June 2025, is allowing buyers with a 5% deposit to access more affordable loans. Shared ownership options are also available for those looking to step into homeownership gradually. These initiatives are making it easier for buyers to secure financing, widening access to the property market.
A market full of opportunities
With more properties available, competitive mortgage rates, and growing buyer confidence, 2025 is shaping up to be a great year for both buyers and sellers. Sellers who position their homes well can attract strong interest, while buyers who act decisively can secure good deals in an active market.
Book a free valuation today and take advantage of the opportunities in this evolving property market
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