Residential property prices have returned to growth with the average house price at £267,500 in November, 1.9% higher than a year ago, according to Zoopla.
Property prices are increasing across all regions and countries ranging from 0.7% in the South East to 6.8% in Northern Ireland
The data also shows that buyers have become more price-sensitive since the Autumn Budget, agreeing sales price at 3.6% below the asking price, up from 3.2% in July
Zoopla forecasts house price growth of 2.5% in 2025 and 1.15m transactions, up from 1.1m in 2024
Meanwhile the north-south divide in house price growth will remain over 2025, the property website adds.
Housing sales end 2024 on a high – London Wallet
Property industry reactions:
Malcolm Prescott, managing director of Webbers in Devon, commented: “Zoopla’s latest House Price Index reveals a 1.9% year-on-year growth and here in the South West we can report that individual homes have performed a little better. All of this is supported by rising salaries [4% up in real terms on average] and the current competitive mortgage rates, which we see continuing. This resilience underscores the long-standing strength of the UK housing market.
“Additionally, buyers now have greater choice, with many estate agents including ourselves here in the West Country, reporting a 30% increase in available stock compared to last year. This gives prospective buyers a better chance of finding their dream home.”
Matt Thompson, head of sales at Chestertons, said: “We are seeing one of the busiest Decembers in years in terms of buyer demand. This is mostly driven by first-time buyers who are keen to get on the property ladder before next year’s changes to stamp duty but also by second-steppers including young families, wanting to upsize.
“Looking to 2025, despite the uplift in buyer enquiries, rapid price increases are unlikely, however, improved affordability, pent-up demand and renewed confidence in the market should provide support for steady growth in property values. As such, we predict property prices to rise by 3.4% across the UK and 3% in London in 2025.”
Nathan Emerson, CEO of Propertymark commented: “When you compare how the housing market entered 2024 to where we stand as we head into 2025, it’s an incredible journey that has seen consumer confidence and affordability grow consistently across the entire year.
“While there may still be aspects of the wider economy that need to find greater stability overall, the housing market sits in a strong position to deliver growth. We are expecting to see a busier than normal first quarter, especially across England and Northern Ireland, as people look to complete on their purchases before the proposed stamp duty thresholds change in April.”
Adam Feather, managing director of Robert Anthony Estate Agents, added: “With the stamp duty deadline moving closer we believe that property transactions will continue to rise in the near-term.
“There are lots of of motivated sellers ready to list, and so we anticipate a strong start to the market in 2025, as stock continues to increase and mortgage rates potentially ease.”
Housing sales end 2024 on a high
