A strong start to 2025
The UK property market has kicked off 2025 with a bang, showing promising signs of continued growth and momentum.
Listings Are Up
We’re seeing a surge in new properties hitting the market, a significant increase compared to the same period last year. This indicates growing seller confidence, with many homeowners feeling now is the right time to make a move. This increase in supply could lead to more competitive pricing and greater choice for buyers.
Sales Momentum Continues
The strong sales momentum from the latter half of 2024 has carried over into the new year. The number of “sales agreed” is up by 48% versus the previous year and is 8.7% higher than 2017/18/19 YTD levels, suggesting a healthy level of buyer demand and a positive outlook for the market.
House Prices Remain Steady
Despite some regional variations, the average house price per square foot is holding firm. While we’re not seeing dramatic price increases, the market remains stable, providing a degree of certainty for both buyers and sellers. This stability is crucial for maintaining confidence in the market.
Rental Market Anomalies
The rental market is presenting a more complex picture. While some regions are experiencing robust rental growth, others, like London, are seeing a relative decline in rental values when adjusted for inflation. This highlights the importance of understanding regional trends within the rental sector. The South West, in particular, is a hotspot, with rental values showing significant increases since 2016. This could be attributed to factors such as increased demand for holiday lets and a growing trend towards remote working, allowing people to relocate to more desirable areas.
Expert Opinion
Verona Frankish, CEO of Yopa, expressed optimism about the year ahead. She highlighted the interplay of rising house prices and potentially declining mortgage interest rates as key factors to watch. She also emphasised the importance of clear communication and market knowledge for estate agents to effectively guide their clients through these dynamics.
Regional Variations
While the overall picture for the UK property market is positive, it’s essential to recognise regional variations. The South West continues to be a standout performer, with strong sales and significant rental growth. Other regions are experiencing more moderate growth, while some, like London, are seeing more subdued activity.
Looking Ahead
The UK property market appears to be on solid footing as we move through the first quarter of 2025. However, it’s important to remain mindful of potential influencing factors, such as the Bank of England’s monetary policy, inflation rates, and wider economic conditions.
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