Half of UK Homes See £7,600 Value Boost in 2024, Market Momentum Continues into 2025

The UK Market has once again shown its remarkable resilience, with 15 million homes (around half of the nation’s housing stock) – experiencing an average value increase of £7600 over the course of last year. This trend has carried forward into 2025, defying predictions of stagnation.

Recent data from e.surv and Acadata shows a turning tide in the housing market. In January 2025, the average sale price of a home in England and Wales rose by 0.1% to £352,300, ending a four-month decline. While this increase is modest, it signals a positive shift in market dynamics.

Regional variations continue to shape the market landscape. Northern Ireland and Scotland lead with strong price growth, while a clear north-south divide persists in England. The North West and North East are spearheading the market recovery, with Yorkshire and the Humber, the Midlands, and Wales also showing promising signs.

London and the South East, however, continue to underperform due to affordability constraints and higher mortgage rates. This regional disparity shows changing tides of the market this year.

Concerning the future, experts are cautiously optimistic about 2025. Zoopla forecasts a 2.5% rise in average UK house prices for the year, with a 5% increase in sales volume compared to 2024. This projection is supported by improving affordability, as household earnings continue to outpace inflation.

The general election last year, did not significantly disrupt the market's trajectory. Instead, attention is now focused on potential policy changes that could further stimulate the housing sector.

Mortgage rates, a key factor in market dynamics, are expected to stabilise between 4% and 5% in 2025. This "new normal" is allowing buyers to adjust their expectations and plan accordingly.

For potential buyers, particularly first-time buyers, challenges remain. However, with a healthy stock of homes for sale and potential base rate cuts on the horizon, 2025 could present new opportunities in the UK housing market.

As we hit the halfway point of the decade ,all eyes will be on how economic factors, policy decisions, and regional variations continue to shape the next chapter of the UK's housing market story.