The latest figures, drawn from Zoopla’s House Price Index, point to a busier purchase market even as house price growth remains modest
The UK housing market is on course for its busiest year for home moves in three years, with projected transactions in 2025 set to reach around 1.2 million – about 9% higher than in 2024 and broadly in line with the 10-year average.
The latest figures, drawn from Zoopla’s House Price Index, point to a busier purchase market even as house price growth remains modest.
Stability in mortgage rates, better mortgage availability and rising household incomes have helped support buyer demand and push up sales volumes. The data suggest increased transaction activity rather than significant price inflation.
The higher level of market activity is not translating into faster house price growth. Average UK property values now stand at £270,300, which is 1.1% higher than in November 2024. That compares with a 1.9% annual rise over 2024 and remains well below the 10-year average of 3.8% a year.
First-time buyers are expected to be the largest buyer group in 2025. Zoopla forecasts that first-time buyer activity will be around 20% higher than in 2024, with this segment accounting for about 39% of all purchases. Existing mortgaged homeowners are projected to make up 33% of transactions, cash buyers 21%, and mortgaged landlords 7%.
While lending conditions have improved for some, the report indicates that first-time buyers are not uniformly purchasing more expensive homes. Across many regional markets, first-time buyer budgets are nearly 5% higher than a year ago. In London, however, they are targeting homes almost 3% cheaper than in 2024, reflecting stretched affordability and higher stamp duty charges against a backdrop of largely flat pricing across southern England.
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