The UK housing market has kicked off 2025 with promising momentum, as new data reveals a steady rise in property prices. According to recent figures, house prices increased by 4.7%* year-on-year in December, marking a strong end to 2024 and setting an optimistic tone for the year ahead. After a period of economic uncertainty, this growth reflects a renewed sense of confidence among both buyers and sellers. As we step into January, many are looking to turn their property aspirations into reality, making this an exciting time for the housing market.
January: making your property resolutions happen
January has always been a month of fresh starts and new goals, and the property market is no exception. For many, buying or selling a home tops their list of New Year’s resolutions. Historically, January sees a noticeable uptick in activity, with estate agents reporting increased enquiries, property viewings, and new listings. Buyers are keen to take advantage of greater property choice, while sellers are finding opportunities to secure competitive offers. If moving home is on your list of resolutions this year, now might be the perfect time to act.
Economic stability supports buyer confidence
One of the key factors driving the current growth in house prices is a stabilising economic environment. Mortgage rates, which caused some uncertainty in previous years, have begun to settle, giving buyers more clarity when securing financing. Alongside this, government schemes and incentives aimed at supporting homeownership continue to play an essential role in encouraging property purchases. This combination of improved financial conditions and supportive policies is helping to boost both buyer and seller confidence, creating a more stable property market.
Regional variations show dynamic growth
While national trends are encouraging, regional differences tell an interesting story about the UK’s diverse housing market. Many cities have seen significant house price growth, driven by strong demand and ongoing regeneration projects. At the same time, rural and suburban areas remain attractive for those seeking more space and a slower pace of life – a trend that began during the pandemic and continues to influence buying patterns in 2025. These variations highlight the importance of understanding local markets when planning a property move.
Stamp duty changes are increasing market activity
Stamp Duty will see significant changes from April 2025, impacting many buyers. From 1st April, a 2% increase will apply to the portion of a property priced between £125,001 and £250,000.** For first-time buyers, the 0% threshold will drop from £425,000 to £300,000.** These changes are already sparking increased market activity as buyers and sellers rush to finalise transactions before the new rates come into effect.
Looking ahead with optimism for 2025
As we move further into 2025, property experts remain optimistic about the housing market’s future. Key factors such as employment levels, interest rates, and housing supply will continue to influence the market’s direction. Affordability remains a challenge for some, but overall, the outlook is positive. Whether you're buying your first home, upgrading to a larger space, or preparing to sell, the key to success in 2025 lies in preparation, research, and timing.
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Nationwide*
GOV.UK**