Welcome to this month’s property market update, where I break down the latest trends in the UK housing market. January has kicked off with a strong start, with positive signs across buyer demand, stock levels, and house price growth. Let’s take a closer look.

Summary

• Annual UK house price inflation: +2.0% (up from -0.9% a year ago)
• Buyer demand: Up 13% year-on-year
• Homes for sale: 10% increase compared to January 2024
• Sales agreed: 12% growth versus last year
• Fastest-growing region: Northern Ireland (+7.7%)
• Most in-demand price range: £300,000 - £625,000 (due to upcoming stamp duty changes)

Buyer Demand Remains Strong

The start of 2025 has seen a surge in market activity, with buyer demand up 13% year-on-year. More homes are coming to market, giving buyers greater choice, while sales agreed are also up 12% compared to the same period in 2024.

The average estate agent branch now has 31 properties listed for sale...the highest number recorded in January for seven years. This increase in available stock is helping to keep the market moving and prevent excessive price spikes.

Impact of Stamp Duty Changes

The April 2025 stamp duty changes are having a noticeable effect on buyer behavior, particularly among first-time buyers (FTBs). Demand has jumped by over a third in the £300,000 - £625,000 price range, as buyers try to complete purchases before the tax increase kicks in.

• Properties under £300,000 remain attractive, as FTBs continue to pay no stamp duty.
• Properties over £625,000 have seen slower demand growth, as they do not benefit from tax relief.

This trend is particularly evident in London and the South East, where many properties fall into this price bracket.

Regional House Price Performance

While the national house price inflation sits at +2.0%, growth varies across the country:

• Northern Ireland: +7.7% (fastest growth)
• North West: +3.2%
• London: +1.4%
• South East & East: +1.0%

At a local level, Wigan (+5.6%) and Motherwell (+4.9%) have seen the strongest house price growth over the past year.

Earnings vs. House Prices: A Positive Shift

For the second consecutive year, wage growth is outpacing house price inflation. Annual earnings are rising by 5%, while house prices have increased by 2%, improving affordability for buyers.

With mortgage rates stabilising in the 4-5% range, this trend is expected to continue throughout 2025, making home-ownership more accessible for those looking to buy.

Outlook for 2025

The market has started 2025 on a solid footing, with positive signs for both buyers and sellers:

• House prices forecast to rise by +2.5% in 2025
• Total property sales expected to increase by 5% to 1.15 million
• Affordability to improve as incomes rise and interest rates stabilise

While some short-term activity is being driven by buyers looking to beat the stamp duty deadline, a strong pipeline of demand suggests the market will remain resilient throughout the year.

Final Thoughts

With buyer demand up, more homes for sale, and affordability slowly improving, 2025 is shaping up to be a healthier market for property transactions. If you’re considering buying or selling, now may be a great time to explore your options.



If you want to learn more about property, or book me  to speak - reach out to me via www.charliepanayi.com