The UK property market is showing steady growth, with the latest Zoopla House Price Index reporting a 2% increase in house prices compared to last year. Sales volumes have surged by 12%, marking the highest growth rate in two years. Additionally, buyer demand has risen by 13%, highlighting a strong resurgence in interest from both homebuyers and investors.
Despite upcoming stamp duty changes in April 2025 and mortgage rate adjustments falling short of expectations, the market remains optimistic. With rising confidence among buyers and a strengthening economic outlook, the UK property sector is well-positioned for continued growth.
UK Property Market Supply and Demand Trends
Rising Property Listings and Market Activity
The number of homes available for sale has increased by 10% compared to last year, making January 2025 the strongest in seven years. On average, each estate agency branch now has 31 properties listed for sale, reflecting an active and dynamic market.
Growing Buyer Interest Despite Stamp Duty Changes
While the stamp duty policy is set for adjustments in April 2025, the overall market remains resilient, with buyer demand continuing to rise. According to Zoopla’s latest survey, more buyers are planning property purchases than in previous years:
- 17% of homeowners plan to buy or move within the next two years, reflecting an upward trend.
- 22% of current renters are looking to purchase a home in the next two years, up from 18% last year.
- 25% of homeowners who are not planning to move are actively monitoring market trends, an increase from 21%.
These statistics underscore the growing confidence in the UK property market, as buyers remain undeterred by policy changes or short-term fluctuations.
The North West Leads the UK in Price Growth
With average UK wages increasing by over 5% in 2024, affordability has improved, supporting greater property market activity. However, high mortgage rates and rising living costs are encouraging buyers to focus on more affordable regions, leading to faster price appreciation in these areas.
Among all regions, the North West recorded the highest house price growth at 3.2% year-on-year, significantly outpacing other parts of England.
- Wigan experienced the fastest growth in the UK, with house prices rising by 5.6%.
- Motherwell in Scotland also posted a strong 4.9% price increase.
By contrast, house price growth in Southern England remains below 1.5%, with higher-priced areas seeing more modest gains. However, London and the South East have witnessed an uptick in first-time buyer demand, which could drive higher price increases in the short term.
Will Stamp Duty Changes Impact the Property Market?
With the UK government set to adjust stamp duty thresholds in April 2025, many buyers are accelerating their transactions to finalize deals before the changes take effect. However, Zoopla’s research suggests that the impact on market activity will be minimal, as strong underlying demand continues to drive the sector.
One of the key factors sustaining house prices is the ongoing supply-demand imbalance. The UK housing shortage remains a primary driver of price stability, ensuring that demand continues to exceed supply.
Additionally, the improving UK economic environment is bolstering consumer confidence, encouraging more buyers to enter the market. Even as property prices rise, the stabilization of mortgage rates is gradually restoring affordability, leading to higher transaction volumes.
Given these conditions, experts predict that UK house prices will continue to grow at an annual rate of 4%-6% throughout 2025, reinforcing the market’s long-term growth potential.
Strong Growth Momentum in UK Property for 2025
The UK property market continues to demonstrate strong resilience and growth potential, with house prices rising by 2% year-on-year and buyer demand reaching new highs. Despite upcoming stamp duty adjustments and mortgage rate uncertainties, the market remains on an upward trajectory, driven by strong economic fundamentals and persistent housing shortages.
For investors, 2025 presents a key opportunity to capitalize on price appreciation and rising buyer demand. With steady growth projections and renewed confidence in the housing sector, the UK property market remains one of the most stable and attractive investment opportunities worldwide.
