UK Housing Market Kicks Off 2025 with a Bang
The UK housing market has surged into 2025 with a record number of new sellers entering the market since Boxing Day last year. According to the property website Rightmove, the number of homes listed for sale is up 11% compared to last year, reflecting renewed confidence despite ongoing uncertainty surrounding interest rates and stamp duty changes.
Market Highlights
- Property Prices on the Rise: The average asking price for properties has climbed 1.7% this month, reaching £366,189—the highest January increase since 2020.
- Growing Buyer Interest: Buyer inquiries have risen by 9% year-on-year, with the number of agreed sales also up by 11%.
- Increased Competition Among Sellers: With the highest number of available listings per estate agency branch in a decade, sellers are keen to attract New Year buyers. However, overpricing may lead to properties lingering on the market.
Interest Rates & Stamp Duty: What’s Next?
Falling inflation has raised expectations for interest rate cuts in 2025, potentially making borrowing more affordable. However, mortgage rates remain relatively high, with the average five-year fixed mortgage at 4.75%.
From April this year, changes to stamp duty land tax will affect buyers of properties in England only, particularly in pricier areas. While first-time buyers in lower-cost regions may see little impact, those purchasing above the new £300,000 tax-free threshold could face higher costs.
What This Means for Buyers & Sellers
Rightmove predicts a 4% increase in asking prices and 1.15 million transactions in 2025. However, market conditions will be shaped by the Bank of England’s rate decisions and economic developments, both in the UK and globally.
If you’re considering buying or selling property this year, our expert team of property solicitors are here to guide you through the process. Please contact us on 01267 237441 or email us at mail@utk.co.uk.
