The housing market has got off to its strongest start in three years, according to a property website.
The volume of new sales agreed was up by 12 per cent, when comparing the four weeks to 24 January 2025 with the same period last year, Zoopla said.
The number of homes for sale is also 10 per cent higher than a year ago.
2025 has started well, better than 2024 and 2023 which bodes well for market activity over the rest of the year
The website suggested some buyers are attempting to beat a stamp duty hike from April 1, which will see the “nil rate” band for first-time buyers reduce from £425,000 to £300,000. Stamp duty applies in England and Northern Ireland.
The average UK house price was put at £267,700, having increased by £5,200 across last year, after a £2,400 decrease during 2023.
Rising volumes of sales are supporting UK house price inflation. Zoopla said house prices across the UK were two per cent higher on average in December 2024 than a year earlier, ranging from 7.7 per cent in Northern Ireland to one per cent in eastern England.
But there are signs that the recent upturn in prices is starting to level out as mortgage rates drift higher and buyers have a wider choice of properties, the report said.
Zoopla said house price inflation will be kept in check over 2025 but the current North/South divide in home price inflation is expected to continue over the year ahead.
Richard Donnell, executive director at Zoopla said: “The first few weeks of each year tend to provide a clear indication of how the rest of the year is likely to unfold.
“2025 has started well, better than 2024 and 2023 which bodes well for market activity over the rest of the year, supported by evidence of more people looking to move.
“It is important not to read too much into the increase in stamp duty for more buyers from April as three in five first-time buyers will still pay nothing from April. The extra costs to homeowners remain manageable and unlikely to reduce sales but they will keep price rises in check.
“The healthy stock of homes for sale will keep price rises in check and we are forecasting average UK house prices will rise by 2.5 per cent in 2025 with five per cent more sales than last year at 1.15 million.
“Rising incomes and base rate cuts will improve affordability and support consumer sentiment.”
Malcolm Prescott, managing director of Webbers Estate Agents said: “January has started very positively here in the South West, with an abundance of new listings and sales to match.”
How house prices changed in 2024
Region |
Average house prices (Dec 2024) |
Change in house prices (£) |
Change in price (%) |
Northern Ireland |
£179,200 | £12,800 |
7.7% |
NW England |
£199,700 |
£6,200 |
3.2% |
NE England |
£146,100 |
£4,100 |
2.9% |
Scotland |
£166,900 |
£6,200 |
3.2% |
| Wales | £206,800 |
£5,400 |
2.7% |
Yorkshire and the Humber |
£189,700 |
£4,900 |
2.7% |
West Midlands |
£232,900 |
£5,100 |
2.2% |
East Midands |
£230,600 |
£3,700 |
1.6% |
London |
£535,100 |
£7,200 |
1.4% |
South West |
£314,000 |
£3,700 |
1.2% |
South East |
£386,200 |
£4,100 |
1.1% |
Eastern England |
£337,100 |
£3,300 |
1.0% |
Source: Zoopla
